The U.S. Department of Defense on Thursday (Jan. 14) announced another group of “communist Chinese military companies” operating directly or indirectly in the United States, including semiconductor companies such as Xiaomi, China Micro and Gao Yun, as well as nine companies such as Hainan Airlines’ Da Xinhua Airlines and China Airlines Group. This means that U.S. investors must divest themselves of the bonds of these companies by Nov. 11 of this year.
The Defense Department on Thursday designated nine more Chinese companies as “communist Chinese military companies” that operate directly or indirectly in the United States.
The Defense Department said in a statement that it made the announcement in accordance with the statutory requirements of Section 1237 of the National Defense Authorization Act for Fiscal Year 1999.
The companies are.
(Advanced Micro-Fabrication Equipment Inc.)
Luokong technology Corporation )
Xiaomi Corporation ( Xiaomi Corporation )
Beijing Zhongguancun Development Investment Center (BCDIC)
Guangdong GOWIN Semiconductor Corp (GOWIN)
Grand China Air Co., Ltd.
Global Tone Communication Technology Co., Ltd.)
China National Aviation Holding Co.
(Commercial Aircraft Corporation of China, Ltd.)
The statement said the Defense Department is “determined to highlight and counter the People’s Republic of China’s civil-military integration development strategy, which supports the People’s Liberation Army’s modernization goals by ensuring that it has access to advanced technology and expertise acquired and developed by these seemingly civilian entities, Chinese companies, universities and research programs.
The Pentagon released its initial list of Chinese Communist military companies to Congress in June 2020, including 20 Chinese companies. In addition to huawei and Hikvision, well-known companies such as China Mobile, China Telecom, China Aviation Industry Corporation, China Railway Construction Group, China Shipbuilding Industry Corporation and Panda Electronics Group were on the list. Since then, the Department of Defense has continuously updated this list.
President Trump issued an executive order last November barring Americans from investing in these companies that are believed to be controlled or owned by the Chinese military. This Wednesday, he revised that executive order. Under the revised executive order, by Nov. 11, 2021, U.S. investors will be required to divest entirely of securities in companies designated by the Defense Department as owned or controlled by the Chinese military. that executive order, issued in November, only restricted U.S. investors from purchasing securities in those companies after the ban went into effect.
The Trump administration has reportedly scrapped plans to blacklist Chinese tech giants Alibaba, Tencent and Baidu while tightening investment restrictions on those companies listed as Communist Party military firms.
The U.S. Department of Commerce also has a blacklist of economic entities and a list of military end-users.
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