America bans 9 more companies associated with Chinese military
New Delhi : The US Department of Defense blacklisted nine more Chinese companies on Thursday, including phone maker Xiaomi. These companies have been blacklisted for allegedly being owned or controlled by the Chinese military. These companies have been blacklisted as a threat to national security. In June 2020, the department released a preliminary list of companies that are considered military relations when operating as a civilian firm. More companies were added to the list in December 2020.
Many companies have been blacklisted earlier
With Thursday’s updated list, there are now more than 40 companies that have been put on the black list. The US Department of Defense issued the names of additional “Communist Chinese military companies” operating directly or indirectly in the United States, pursuant to the statutory requirement of section 1237 of the National Defense Authorization Act, amended in fiscal year 1999 has gone.
In November last year, Trump signed an executive order prohibiting Americans from investing in blacklisted firms. The owners of the shares of these companies should get rid of them by 11 November 2021.
National security threat from companies
In its statement, the Department of Defense stated, “Our department is determined to highlight and counter the military-civilian fusion development strategy of the People’s Republic of China (PRC) which is able to expand its reach to acquire and develop advanced technologies and expertise by ensuring the People’s Liberation Army (PLA) supports its modernization goals. Even those PRC companies, universities and research programs that appear to be civic bodies.”
In addition to the X128, additional firms that have been blacklisted include Advanced Micro-Fabrication Equipment Inc. (AMEC), Luokong Technology Corporation (LKCO), Beijing Zhongguancun Development Investment Center, GOWIN Semiconductor Corp, Grand China Air Company (GCAC), Global Tone Communication Technology (GTCOM), China National Aviation Holding Company Limited (CNAH) and Commercial Aircraft Corporation of China (COMAC).
