(Bloomberg) — The Pentagon has added China’s leading memory chip maker and major players in AI, energy and automobiles to a list of companies it has accused of aiding the Asian nation’s military, citing potential national security threats. A roster has been expanded for the purpose of warning allies against.
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The Defense Department added Yangtze Memory Technologies Co. and facial-recognition firm Megvii to its so-called Section 1260H list. That list already includes major telecommunications and aerospace players as well as Huawei Technologies Co. and Semiconductor Manufacturing International Corp. — two companies at the center of Beijing’s efforts to replace American technology.
The latest list includes Advanced Micro-Fabrication Equipment Inc., one of the nation’s largest gear suppliers for chip production, and IDG Capital, a prolific private equity and venture capital investor that has backed some of the highest-profile startups. Is.
The Pentagon also greenlighted China Three Gorges Corp, which operates clean energy projects in China and 20 other countries, and a branch of Hesai Group, which makes LiDAR or road-sensing equipment used in autonomous driving systems. Is. Its customers include Didi Global Inc., Pony.AI and General Motors Co.’s Cruise Robotaxi subsidiary.
Washington has already imposed export bans and other sanctions on Huawei, SMIC and other companies on the Pentagon’s roster as part of a broader campaign to prevent the rise of a geopolitical rival that it says is critical of its security. Perceives danger. Huawei and SMIC, which designed and produced more advanced chips than ever before for China, are cut off from buying many types of American software and circuitry by the end of 2023. 1260H specifically restricts access to certain defense contracts.