Pentagon expands list of Chinese firms with alleged military links

The U.S. Pentagon has updated its ‘Section 1260H’ list to feature prominent Chinese tech firms over their alleged ties to China’s military operations

The Pentagon has expanded its list of Chinese companies alleged to have ties with Beijing’s military. The “Section 1260H” list, which aims to prevent U.S. technology from aiding China, now includes over a dozen new Chinese firms.

Among the notable additions are memory chip maker Yangtze Memory Technologies Corp (YMTC), arrtificial intelligence firms Megvii and Yitu Technology, lidar producer Hesai Technology, and tech company NetPosa. These companies join others like BGI Genomics Co and China Mobile, previously designated on the list.

Craig Singleton from the Foundation for Defense of Democracies highlighted the significance of this action. He said, “Being listed on 1260H poses major reputational risks to Chinese companies.” This list doesn’t imply immediate bans but warns U.S. entities about the risks of engaging with these firms. It may also lead to sanctions by the Treasury Department.

China’s response has been critical, with a spokesperson from the Chinese embassy in Washington denouncing the move as an abuse of state power and contrary to the U.S.’ commitment to market competition and international fair trade.

The 2024 National Defense Authorization Act further intensified the impact of the list by barring the Defense Department from contracting with any of the designated companies.

China’s response was critical, with an embassy spokesperson in Washington accusing the U.S. of abusing state power and undermining market competition and fair trade.

While Hesai Group denied military connections, some firms like YMTC and Megvii have not responded to the allegations.

Source: Reuters