On January 31, the U.S. Department of Defense added a number of Chinese companies to the "Chinese Enterprise List" in accordance with the statutory requirements of Section 1260H of the National Defense Authorization Act for Fiscal Year 2021, aiming to restrict Chinese companies and advanced technology and expertise, including memory chip manufacturers, artificial intelligence companies, lidar manufacturers, etc. There are currently 62 Chinese companies on the list. Here is the full list of 1260h:
A spokesperson for the Chinese Embassy in the U.S. objected to this, condemning it as an abuse of state power and contrary to the U.S. claim of "commitment to market competition and international fairness."
While being listed does not involve an immediate ban, it can be a blow to the reputation of the designated company and send a stern warning to U.S. entities and companies that there are risks involved in doing business with these companies. It could also increase pressure on the Treasury Department to sanction these companies.
In addition, the National Defense Authorization Act of 2024 adds something to the "Section 1260H" list, under which the Department of Defense is prohibited from contracting with any designated company in the coming years under Section 805 of the Act.
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Editor: Yoyo