Pentagon calls out Chinese companies it says are helping Beijing’s defense force

Pentagon calls out Chinese companies it says are helping Beijing's defense force
© Reuters. FILE PHOTO: The flags of the United States and China lope from a lamppost within the Chinatown neighborhood of Boston, Massachusetts, U.S., November 1, 2021. REUTERS/Brian Snyder//File Photo

By Idrees Ali, Alexandra Alper and Michael Martina

WASHINGTON (Reuters) – The United States on Wednesday added better than a dozen Chinese companies to a list created by the Defense Division to spotlight companies it says are allegedly working with Beijing’s defense force, as half of the broader effort to withhold American abilities from helping China.

Unusual additions to the list, first reported by Reuters, were posted to the Division of Defense web attach and encompass reminiscence chip maker YMTC, man made intelligence company Megvii, lidar maker Hesai Abilities and tech company NetPosa.

Amid strained ties between the arena’s two most involving economies, the updated list is one amongst diverse actions Washington has taken in recent years to spotlight and restrict Chinese companies that is says might merely toughen Beijing’s defense force.

While being positioned on the list would no longer involve instantaneous bans, it’ll be a blow to designated companies’ reputations and represents a stark warning to U.S. entities and companies about the hazards of conducting industry with them. It might most likely additionally add rigidity on the Treasury Division to sanction the companies.

In addition, the 2024 Nationwide Defense Authorization Act added some enamel to the “Part 1260H” list, prohibiting the Defense Division below Part 805 of the law in coming years from contracting with any of the designated companies.

YMTC, Megvii and Hesai didn’t straight away acknowledge to requests for comment. The Chinese embassy in Washington didn’t straight away acknowledge to a search info from for comment.

“The Defense Division’s updated 1260H list underscores China’s unwavering commitment to its defense force-civil fusion technique,” stated Craig Singleton, a senior fellow on the Foundation for Defense of Democracies.

“Being listed on 1260H poses fundamental reputational risks to Chinese companies,” he added, noting that some Chinese companies maintain tried to be eradicated from the list.

Other companies added on Wednesday encompass China Three Gorges Corp, China Construction Abilities Co and Yitu Community Abilities, as smartly as publicly traded companies Chengdu JOUAV Automation Tech Co, Chengdu M&S Electronics Abilities Co, Guizhou Aviation Technical Trend Co, and ShenZhen Consys Science & Abilities Co.

They join beforehand listed aviation company AVIC, BGI Genomics Co, China Cellular (NYSE:), energy company CNOOC (NYSE:) and China Railway Construction Corp.

Individually on Wednesday, senior U.S. officers, including FBI Director Christopher Wray, warned that hackers linked to China’s authorities are making ready to device off “precise-world hassle” by focusing on serious U.S. infrastructure, equivalent to water remedy vegetation, the electrical grid, oil and pipelines, and transportation hubs.

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