The United States added more than a dozen Chinese companies to a list created by the Defence Department that highlights entities that are alleged to work with Beijing’s military, a U.S. official said on Wednesday.
New additions to the list include memory chip maker YMTC, artificial intelligence company Megvii, lidar maker Hesai Technology and tech company NetPosa.
While being placed on the “Section 1260H” list doesn’t involve immediate bans, it carries significant reputational risk for the designated companies and represents a stark warning to U.S. entities about the risks of conducting business with them. It could also add pressure on the Treasury Department to sanction the companies.
In addition, the 2024 National Defence Authorisation Act added some teeth to the list, prohibiting the Defence Department under Section 805 of the law in coming years from contracting with any of the designated companies.
The updated list is expected to be made public later. Chinese Embassy in Washington did not immediately respond to a request for comment.
Other firms added on Wednesday include China Three Gorges Corporation, China Construction Technology Co and Yitu Network Technology.
