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US-China relations
China

US deems more Chinese tech companies ‘military’ and a national security risk

  • List of military-linked entities operating in the US grows as the Pentagon adds Chinese AI companies, a drone maker and a memory-chip firm
  • Among the companies named are Yangtze Memory Technologies Corp, NetPosa, Yitu Technology and Beijing Megvii

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Yangtze Memory Technologies Corp operates in the United States but has ties to the Chinese military, according to the US Defence Department. Photo: Shutterstock
Khushboo Razdanin Washington

The Pentagon on Wednesday labelled more than a dozen Chinese tech firms, including memory-chip maker Yangtze Memory Technologies Corp (YMTC), as “military companies” that pose a national security risk to the US.

Artificial intelligence companies Yitu Technology and Beijing Megvii, drone maker Chengdu JOUAV, lidar maker Hesai Technology and tech company NetPosa are also entities that operate in the United States but have ties to the Chinese military, according to the US Defence Department.

They join Shenzhen-based consumer drone maker DJI Technology and China’s leading genetics firm, BGI, on what is called the 1260H list, which makes US and international companies aware of entities that could be supporting Beijing’s military-industrial complex.

First established under the National Defence Authorisation Act for fiscal year 2021, the 1260H list is updated annually by the Defence Department.

Being named on the list does not involve a complete ban, but it does render the firms ineligible for Defence Department contracts. Additionally, the label could lead to blacklisting by the US Treasury Department, curbing the companies’ business prospects.

A spokesman for China’s embassy in Washington, Liu Pengyu, said that the US was “overstretching” national security and “abusing” state power, and that the moves would “ultimately undermine the US’ own interests.”

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