The US Adds More Than Twelve Chinese Companies To The List Accused Of Working With The Military

JAKARTA - On Wednesday, January 31, the United States added more than twelve Chinese companies to the list created by the Department of Defense to highlight companies that are said to be working with the Beijing military. This was done as part of a broader effort to prevent American technology from helping China.

New additions to the list, posted on the US Department of Defense website and includes memory chip maker YMTC, intelligence company made by Megvii, lidar maker Hesai Technology, and technology company NetPosa.

Amid strained relations between the world's two largest economies, this updated list is one of Washington's actions in recent years to highlight and limit Chinese companies, which, according to him, could strengthen Beijing's military.

A spokesman for the Chinese embassy in Washington said China was against this move and called it abuse of state power, adding that it was against "the commitment the US has to say against market competition and fair international trade."

YMTC, Megvii, and Hesai have yet to respond to requests for comment.

While being included in the list does not involve direct bans, this could be a blow to the reputation of designated companies and a stern warning to US entities and companies about the risks of doing business with them. It can also add to the pressure on the Treasury Department to impose sanctions on these companies.

In addition, the 2024 National Defense Authority Act added power to the "part of 1260H" list, banning the Department of Defense under Section 805 of the law in the next few years from contracting with one of the appointed companies.

"The 1260H list updated by the Department of Defense affirms China's commitment to its military-civilized strategies," said Craig Singleton, a senior following at the Foundation for Defense of Democracys. "Registed at 1260H poses a great reputational risk to Chinese companies," he added, noting that several Chinese companies had tried to be removed from the list.

Other companies added Wednesday 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 joined previously listed companies such as aviation companies AVIC, BGI Genomics Co, China Mobile, energy companies CNOOC, and China Railway Construction Corp.

Separately on Wednesday, senior US officials, including FBI Director Christopher Wray, warned that hackers linked to the Chinese government are preparing to cause "real world losses" by targeting critical US infrastructure, such as water treatment plants, power grids, oil and gas pipelines, and transportation centers.