The US Department of Defense announced on Monday (January 6) as part of its strategy to counter the Chinese Communist Party’s military-civil fusion, it has added several Chinese tech giants, including leading gaming and social media company Tencent Holdings and battery manufacturer Contemporary Amperex Technology Co. Limited (CATL), to a blacklist of companies suspected of cooperating with the Chinese military.
According to a document released on Monday, the new additions to the list include Tencent, CATL, chipmaker ChangXin Memory Technologies (CXMT), Internet of Things solutions provider Quectel Wireless Solutions, and drone manufacturer Autel Robotics.
According to Section 1260H of the National Defense Authorization Act for Fiscal Year 2021, the Department of Defense annually publishes an updated version of the “Section 1260H List,” which consists of “Chinese Military Companies” (CMC) operating directly or indirectly in the United States. The latest update includes a total of 134 Chinese companies.
A spokesperson for Quectel Wireless Solutions, cited by Reuters, stated that the company “has not cooperated with the military of any country” and will request the Pentagon to reconsider its designation.
Other companies and the Chinese Embassy in Washington did not respond to Reuters’ requests for comments.
While the list does not entail immediate restrictions, it could potentially damage the reputations of the listed companies.
Moreover, the release of this list also serves as a warning to American businesses and institutions, cautioning them about the risks of collaborating with these companies as they are suspected of aiding in the Chinese Communist Party’s military development, posing threats to US national security.
The list will also prompt the US government, especially the Treasury Department, to impose sanctions on the implicated companies.
Drone manufacturer DJI and LiDAR manufacturer Hesai Technology had previously filed lawsuits against the Department of Defense for being included on the list, but both companies’ names still remain on the updated list.