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Laura Zhou

The Pentagon has added five Chinese companies including Shenzhen-based tech giant Tencent and the world’s biggest battery maker CATL to a list of mainland firms that Washington believes pose threats to US national security.
The new additions include chipmaker ChangXin Memory Technologies Inc, Quectel Wireless and drone-maker Autel Robotics, according to a document on the Federal Register that is to be published on Tuesday.
The move expanded the Pentagon’s list of Chinese military companies to 134, including 57 entities and their subsidiaries. The designation forms part of Washington’s efforts to counter Beijing’s military-civil fusion strategy.
As mandated by the Defence Authorisation Act of 1999, the Pentagon must publish a list of companies linked to the People’s Liberation Army.


But it was not until June 2020 that the first formal list of 20 Chinese military companies, including telecoms giant Huawei Technologies, was published.
Signed into law on January 1, 2021, the NDAA for fiscal year 2021 required the Pentagon to annually update and publish the list of “Chinese military companies”.
Unlike export controls or sanctions, the designation has no legal ramifications, but it could damage the reputation of those listed and could heap pressure on the Treasury Department to impose sanctions on the companies.
In response, the Chinese embassy in Washington on Monday said China “firmly” opposed the move, calling it “unreasonable suppression of Chinese companies, and the disruption of normal Sino-US economic and trade cooperation”.
The Pentagon’s blacklist would “undermine the confidence of foreign companies in investing and operating in the United States and damage the interests of American companies and investors, which will eventually backfire on itself,” according to Liu Pengyu, its spokesman, in a statement to the Post.
“We urge the US to immediately correct the above discriminatory practices and provide a fair, just and non-discriminatory environment for Chinese companies to operate,” he said. “China will continue to firmly safeguard the legitimate rights and interests of its own companies.”
A spokesperson for Tencent described its inclusion in the list as “clearly a mistake”.
“We are not a military company or supplier,” the spokesperson said. “Unlike sanctions or export controls, this listing has no impact on our business. We will nonetheless work with the Department of Defence to address any misunderstanding.”
Meanwhile, a Quectel spokesperson said its company “does not work with the military in any country and will ask the Pentagon to reconsider its designation, which clearly has been made in error”.

CATL called its designation “a mistake”, saying the “privately founded” company “is not engaged in any military-related activities”.
“We welcome responsible discourse on our business operations and take questions about our business seriously,” its spokesman added.
The other companies new to the list did not immediately respond to requests for comment, nor did the Chinese embassy in Washington.
Amid an intensifying Sino-American rivalry, US lawmakers have pushed the Pentagon to add more companies to the list.
The latest development coincides with tit-for-tat measures taken by Beijing and Washington over national security, including trade restrictions, investment bans, sanctions on officials and companies as well as greater scrutiny of technology transfers and supply-chain dependencies.
On Friday, the US Commerce Department said 11 Chinese entities including companies and research labs would be sanctioned over their support of China’s military modernisation.
And last week, the Biden administration said it was considering a new rule that could ban Chinese-made drones in the US owing to national-security concerns.
Under the last list, drone-maker DJI and lidar-maker Hesai Technologies, both sued the Pentagon last year over their designations, but remain on the updated roll.
The Pentagon also removed six companies it said no longer met the requirements for the designation. They include AI firm Beijing Megvii Technology Co, China Railway Construction Corporation, China State Construction Group Co Ltd and China Telecommunications Corporation Ltd.
Additional reporting by Reuters


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Chipmaker Changxin Memory Technologies and drone-maker Autel Robotics also included among companies Pentagon says threaten national security


Chipmaker Changxin Memory Technologies and drone-maker Autel Robotics also included among companies Pentagon says threaten national security.
