The U.S. Department of Defense said on Monday it had added Chinese technology giants including Tencent Holdings Ltd. and battery maker Contemporary Amperex Technology Co., Ltd. to a list of companies it said were cooperating with China's military. The list also includes chip maker Changxin Memory, Quectel Communications and drone maker Datong Technology, according to authority documents.
According to a notice published in the Federal Register, the annually updated list of Chinese military companies (officially known as the “Section 1260H List” under U.S. law) designates 134 companies. While the designation does not involve an immediate ban, it could deal a blow to the reputation of the affected companies and serve as a stern warning to U.S. entities and companies about the risks of doing business with them. It could also increase pressure on the U.S. Treasury Department to sanction the companies.
The U.S. Department of Defense also removed six companies it said no longer met designated requirements, including artificial intelligence company Beijing Megvii Technology, China Railway Construction Corporation, China State Construction Engineering Corporation and China Telecom Group.