Amid escalating tensions between the United States and China, the U.S. Department of Defense has expanded its list of Chinese companies allegedly collaborating with Beijing’s military. The updated list, known as the “Section 1260H” list, is part of a broader effort to prevent American technology from contributing to China’s military capabilities. It includes well-known entities such as memory chip maker YMTC, artificial intelligence company Megvii, lidar manufacturer Hesai Technology, and technology firm NetPosa.
This move reflects Washington’s ongoing strategy to restrict Chinese companies that could bolster Beijing’s military-industrial complex. While the listed companies are not immediately banned, their reputations are significantly affected, serving as a clear warning to U.S. entities and companies about the potential risks of doing business with them.
Craig Singleton, a senior fellow at the Foundation for Defense of Democracies, emphasized the importance of being listed on “1260H,” stating, “The Defense Department’s updated 1260H list underscores China’s unwavering commitment to its military-civil fusion strategy.”
Furthermore, the 2024 National Defense Authorization Act has added more weight to the list by prohibiting the Defense Department from contracting with any of the designated companies in the near future. Some Chinese firms have reportedly taken steps to be removed from the list, indicating the reputational risk associated with such a designation.
These actions also raise concerns about Chinese companies’ involvement in the U.S. and the potential risks associated with dual-use technologies that could advance China’s military capabilities. As the Biden administration navigates these complex dynamics, the measures against Chinese companies and the warnings about cyber threats underscore the ongoing geopolitical tensions and the evolving nature of the U.S.-China relationship.
Bill Drexel, from the Center for a New American Security, a Washington-based think tank, highlighted that the updated list “stands as a reminder that the Sino-American economic relationship – especially around technology – is continuing to fray, and for good reason”.
He noted that while the Chinese Communist Party would not back down from its military-civil fusion strategy, “Americans cannot afford to be naive about the pronounced role that ostensibly private companies in China play in building out China’s military might, with direct strategic implications for American national security.”
In response to the U.S., a spokesperson for the Chinese embassy in Washington stated China’s opposition, calling it an abuse of state power that goes against the alleged commitment to market competition and international fair trade. The spokesperson urged the U.S. to correct what they deemed as discriminatory practices and ensure a fair, just, and non-discriminatory environment for Chinese firms to conduct business.
Hesai Group, one of the companies added to the list, expressed, “We do not sell products to any military in any country, and we do not have ties with any military. We are disappointed to be added to the list.”
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Source from www.ibtimes.com
