The United States added more than a dozen Chinese companies to a list created by the Defense Department to highlight firms it says are allegedly working with Beijing’s military, as part of a broader effort to keep American technology from aiding China.
New additions to the list, were posted on the Department of Defense website and include memory chip maker YMTC, artificial intelligence company Megvii, lidar maker Hesai Technology and tech company NetPosa.
Amid strained ties between the world’s two biggest economies, the updated list is one of numerous actions Washington has taken in recent years to highlight and restrict Chinese companies that is says may strengthen Beijing’s military.
A spokesperson for the Chinese embassy in Washington said China opposed the move and called it an abuse of state power, adding that it ran counter to the US’s “alleged commitment to market competition and international fair trade.”
Hesai Group said it does not sell products to any military in any country and it does not have ties with any military. The company said it was disappointed to be added to the list.
YMTC, and Megvii did not immediately respond to requests for comment.
In addition, the 2024 National Defense Authorization Act added some teeth to the “Section 1260H” list, prohibiting the Defense Department under Section 805 of the law in coming years from contracting with any of the designated companies.
“The Defense Department’s updated 1260H list underscores China’s unwavering commitment to its military-civil fusion strategy,” said Craig Singleton, a senior fellow at the Foundation for Defense of Democracies.
“Being listed on 1260H poses major reputational risks to Chinese companies,” he added, noting that some Chinese firms have tried to be removed from the list.
Other firms added include China Three Gorges Corp, China Construction Technology Co and Yitu Network Technology, as well as publicly traded companies Chengdu JOUAV Automation Tech Co, Chengdu M&S Electronics Technology Co, Guizhou Aviation Technical Development Co, and ShenZhen Consys Science & Technology Co.
They join previously listed aviation company AVIC, BGI Genomics Co, China Mobile, energy company CNOOC and China Railway Construction Corp.
