U.S. Targets Chinese Tech: 12 Companies Blacklisted by Defense Department

The U.S. Department of Defense has added 12 companies to its list of firms linked to the Chinese military. The new additions include semiconductor manufacturer YMTC (Yangtze Memory Technologies), AI company Megvii, lidar manufacturer Hesai, a key technology for autonomous vehicles, and tech company NetPosa.

According to Reuters, on the 31st, 12 companies were added to the list of Chinese companies related to the Chinese military posted on the U.S. Department of Defense’s website. The companies on this list are banned from receiving investments from Americans or American companies.

The U.S. is preventing U.S. investors and pension funds from buying and selling stock in Chinese companies designated as receiving support from the Chinese military.

Reuters pointed out that “although the Chinese companies on this list are not immediately subject to U.S. economic sanctions, it is a warning to U.S. companies and institutions about the risks of doing business with these Chinese companies.”

The list announced this time is one of the many measures the U.S. took to limit technology acquisition to strengthen China’s military power.

A spokesperson for the Chinese embassy in Washington criticized the move as an “abuse of state power,” which contradicts “the U.S.’s commitment to market competition and fair international trade.” The related companies have not commented on the issue.

The U.S. Treasury Department can impose separate economic sanctions on these companies. In particular, the 2024 National Defense Authorization Act includes a provision that the U.S. Department of Defense should not engage in any transactions with the Chinese companies on this list.

Meanwhile, high-ranking U.S. officials, including FBI Director Christopher Wray, warned on the same day that “hackers linked to the Chinese government are preparing to inflict damage, targeting key U.S. infrastructure such as water treatment plants, power grids, oil and natural gas pipelines, and transportation hubs.”