The US defense department has added a number of Chinese companies, including drone manufacturer DJI Technology and BGI Genomics, to its blacklist, which subjects them to a ban on investment from the US. The United States Defense Department (DoD) has added more than a dozen Chinese companies, including companies based in Shenzhen, to the blacklist of firms with suspected links to China’s military, clearing the way for restrictions on their businesses.
In June of last year, President Joe Biden signed an executive order banning U.S. entities from investing in the scores of Chinese firms whose alleged links are with the defense or surveillance technology sectors. An initial batch of around 50 Chinese companies, including telecommunications equipment manufacturer Huawei, was added to the US list last June.
The blacklist included over 60 Chinese companies, including technology giant Huawei Technologies and semiconductor manufacturer SMIC. BGI Genomics Co, a company that makes genetic tests; CRRC Corp, which makes rolling stock; and Zhejiang Dahua Technology, a surveillance equipment manufacturer in Hangzhou, are also included in the updated list.
A review by Reuters last year of academic papers and corporate statements found that BGI Genomics Co Ltd had developed its tests in cooperation with China’s military, and was using them to gather genetic data to conduct population-wide studies on traits.
The U.S. Defense Department added the consumer drone manufacturer DJI Technology, based in Shenzhen, to its list of companies that are suspected to have links with China’s military. The DOD is determined to emphasize and oppose the PRCs combined military-civilian strategy, as well as to support PLAN’s modernization goals by assuring that it has access to advanced technologies and know-how acquired and developed by Chinese companies and universities, the Pentagon said in a statement.
It was part of President Joe Biden’s broader series of steps to counter China, including reinforcing American alliances and pushing for large-scale domestic investments to boost American economic competitiveness, amidst the growing acrimony between the world’s two biggest economies. The executive order was intended to thwart efforts by the United States. Washington intended to pour money into nearly any idea with a plausible chance of helping American investments stymie Chinese support for its military-industrial complex, and into its defense, intelligence, and security R&D programs.
The U.S. Department of Commerce, scheduled to issue new restrictions on exports to China earlier is likely to reject requests from American suppliers of DRAM or flash memory chip equipment to ship their products to Chinese firms including Yangtze Memory Technologies Co and ChangXin Memory Technologies Inc, sources said.
