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Pentagon Tightens Grip on Chinese Firms with Military Links

The Pentagon has recently updated its blacklist, adding more than a dozen Chinese tech firms linked to the military efforts of the Chinese Communist Party.

This move is part of the United States’ strategic effort to counteract China’s military-civil fusion strategy.

New Entries to the List

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Newly blacklisted firms include prominent names such as memory chip manufacturer YMTC and artificial intelligence innovator Megvii.

On January 31, the Pentagon made a decisive move by adding over a dozen Chinese tech companies to its blacklist.

The Essence of Military-Civil Fusion

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The Pentagon’s update aims to shed light on the Chinese strategy that melds civilian expertise and military advancements.

Companies like drone maker Chengdu JOUAV and lidar producer Hesai Technology exemplify the dual-use nature of China’s technological endeavors.

Legislative Foundations

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The action is backed by Section 1260H of the National Defense Authorization Act.

Additionally, it requires annual updates to this list.

Congressional Concerns

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GOP senators recently emphasized the urgency of publishing this list.

The urgency reflects bipartisan concern over China’s global tech acquisitions.

Global Implications

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The senators highlighted how China’s secretive acquisitions pose risks to international norms of transparency and fairness.

Being included on this list signifies major reputational risks for Chinese companies.

The Impact of Designation

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Senators also cautioned U.S. and global entities about engaging with them.

Craig Singleton, Senior Director for China at FDD, noted that this designation underscores China’s commitment to integrating civilian companies into its military objectives.

Executive Orders Against Investment

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Presidents Trump and Biden issued executive orders to prevent U.S. investments.

The order was made particularly against investing in companies tied to China’s military activities.

Biden’s Expansions

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President Biden expanded these orders. He specifically targeted investments that could enhance China’s military and surveillance capabilities.

Investment Bans

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The executive orders reflect a concentrated effort to safeguard U.S. national security against the threats posed by China’s military advancements.

The “Outbound Investment Transparency Act” is one of several legislative efforts aimed at monitoring U.S. investments in sensitive Chinese technologies.

The Future of U.S.-China Relations

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These measures illustrate the complex nature of U.S.-China relations.

It emphasizes security and technological sovereignty.

Safeguarding National Interests

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The United States continues to refine its strategies.

They aim to protect the nation against the strategic challenges presented by China’s military-civil fusion strategy.

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Credit: KIEV, UKRAINE – Dec 07, 2015: Vice president of USA Joe Biden during an official visit to Kiev, Ukraine — Photo by palinchak