The United States on Wednesday (January 31) added more than a dozen Chinese companies to a list established by the Department of Defense to highlight companies that allegedly cooperate with the Chinese military in an effort to prevent American technology from being used for aid. part of China’s broader efforts.
The newly added list was published on the website of the U.S. Department of Defense, including memory chip manufacturer Yangtze River Storage (YMTC), artificial intelligence company Megvii Technology (Megvii), lidar manufacturer Hesai Technology (Hesai Technology) and technology company Dongfang NetPosa.
The update to the list is one of many actions Washington has taken in recent years to highlight and restrict Chinese companies seen as potentially bolstering Beijing’s military might, amid tensions between the world’s two largest economies.
A spokesman for the Chinese Embassy in the United States objected to this, condemning it as an abuse of state power and contrary to the United States’ stated “commitment to market competition and international fair trade.”
The Chinese Ministry of Foreign Affairs urged the United States to “immediately correct this discriminatory practice” and provide Chinese companies with a “fair, just and non-discriminatory business environment.” A spokesman for the Chinese Ministry of Foreign Affairs said at a regular press conference on Thursday: “This violates the principles of market competition and international economic and trade rules that the United States has always advocated, and undermines the confidence of foreign companies to invest and operate in the United States.”
Hesai Group said that the The company does not sell products to or have any affiliation with the military of any country. The company said it was disappointed to be included on the list.
Yangtze Storage and Megvii Technology did not immediately respond to media requests for comment.
It is understood that being included on this list does not involve an immediate ban, but it can be a blow to the reputation of the designated companies and send a stern warning to US entities and companies, reminding them of the risks of doing business with these companies. It could also increase pressure on the U.S. Treasury Department to sanction these companies.
In addition, the 2024 National Defense Authorization Act (NDAA) added some restrictive measures to the “Section 1260H” list. Section 805 of the act prohibits the U.S. Department of Defense from entering into contracts with any of the designated companies for several years.
Craig Singleton, a senior fellow at the Foundation for Defense of Democracies, a Washington think tank, said: “The Department of Defense’s updated 1260H list highlights concerns about China’s military-civilian fusion strategy.” He added: “Being included in 1260H is a threat to Chinese companies pose significant reputational risks.” He noted that some Chinese companies had tried to be removed from the list.
Other companies added to the list on Wednesday include China Three Gorges Corporation, China Construction Technology Co., Ltd. and Shanghai Yitu Network Technology Co., Ltd., as well as listed companies Chengdu Zongheng Automation Technology Co., Ltd. and Chengdu Mengsheng Electronic Technology Co., Ltd. , Guizhou Hangyu Technology Development Co., Ltd. and Shenzhen Kesi Technology Co., Ltd.
Previously on the list were listed airlines AVIC, BGI, China Mobile, energy company China National Offshore Oil Corporation and China Railway Construction Corporation.
Senior U.S. officials, including FBI Director Christopher Wray, warned on Wednesday that Chinese state-backed cyberhackers were targeting U.S. infrastructure such as water treatment plants, power grids, oil and gas pipelines and transportation hubs, causing “Real damage to the world.”
