The Pentagon now considers Cirrus a Chinese military company. The Department of Defense updated its Section 1260H list of Chinese military companies operating in the U.S. on Monday and added Cirrus Design Corporation, a designation that lands three weeks before a federal contracting ban tied to the list takes effect. Why Cirrus made the list Cirrus has been owned by the Aviation Industry Corporation of China (AVIC) since 2011, when AVIC subsidiary China Aviation Industry General Aircraft bought the company for about $210 million. The transaction was approved at the time by the US Treasury committee that reviews foreign investment for national security concerns. AVIC is directly owned and controlled by China's State-owned Assets Supervision and Administration Commission and is a contributor to Beijing's military-civil fusion strategy. AVIC was already subject to a US investment blacklist introduced in 2021. The DOD is prohibited from entering, renewing or extending contracts with any listed company from June 30, 2026, and is prohibited from procuring parts and services from these companies by June 30, 2027. There is currently no large business happening between Cirrus and the U.S. military, though the Air Force Academy has used the T-53A, a militarized SR20, in its powered flight program. The FAA does have a contract for SF50 Vision Jet initial and recurrent pilot training, but that contract sits outside the DOD. While Cirrus is a U.S.-incorporated company, its Chinese ownership has caused issues before. In July 2025, Utah state officials blocked Cirrus from purchasing land near Provo Airport (PVU), citing the company's ownership by AVIC under a state law that restricts land acquisitions by certain foreign entities. Market impact: who should be concerned Before anyone panics, Cirrus is not banned from the U.S. and will still deliver and operate in the country. The company will just not be allowed to work with the Pentagon, which has not happened since 2011, with a $6.1 contract for 25 militarized SR20s. The procurement ban is the larger issue, as it directly affects flight schools, government contractors and operators with government-related missions, who will no longer be allowed to purchase the parts and services needed to maintain and operate these aircraft from Cirrus. Cirrus is the best-selling piston aircraft manufacturer in its class, with the SR22 alone having thousands of active owners. The listing raises questions about the long-term resale value and financing terms for Cirrus aircraft, as U.S. companies and state entities decide how to respond to its inclusion.