US Lists 20 Companies Including Huawei As Controlled by China’s Military Regime, Could Hit Them With Sanctions

The United States Department of Defense. has identified and listed 20 Chinese companies, including Huawei Technologies, which are controlled by the military regime in Beijing as part of move by Trump administration to make it harder for Beijing to secure US investment and sensitive technologies, The Financial Times reported.

The Financial Times report said that the Congress required the Pentagon to produce the list in 1999, but officials never followed through on the request. The effort finally gained momentum as lawmakers responded to rising tensions with Beijing.

The 1999 law authorises US president authorisation to impose sanctions on specified Chinese companies that operate “directly or indirectly” in the US.

According to the The Financial Times, the companies listed for their links to Chinese military are

• Aviation Industry Corporation of China
• China Aerospace Science and Technology Corporation
• China Aerospace Science and Industry Corporation
• China Electronics Technology Group Corporation
• China South Industries Group Corporation
• China Shipbuilding Industry Corporation
• China State Shipbuilding Corporation
• China North Industries Group Corporation
• Hangzhou Hivision Digital Technology Co
• Huawei
• Inspur Group
• Aero Engine Corporation of China
• China Railway Construction Corporation
• CRRC Corp
• Panda Electronics Group
• Dawning Information Industry Co
• China Mobile Communications Group
• China General Nuclear Power Corp
• China National Nuclear Corp and
• China Telecommunications Corp.

Most of the companies listed by Pentagon are state-owned entities operating in fields as diverse as nuclear power to aviation to telecom.

Another report quoted Pentagon spokesman Jonathan Hoffman as saying "As the People''s Republic of China attempts to blur the lines between civil and military sectors, ''knowing your supplier'' is critical. We envision this list will be a useful tool for the US government, companies, investors, academic institutions, and like-minded partners to conduct due diligence with regard to partnerships with these entities, particularly as the list grows."

US has been making a concerted effort to caution countries across the world about Huawei as the race to upgrade telecom infrastructure to 5G worldwide begins.

US secretary of state Mike Pompeo accused Huawei of being a "tool of the CCP surveillance state."