The Pentagon released a list of 20 companies that it says are owned or controlled by Communist China’s military and operate in the US – including tech giant Huawei, according to a report.
The list, sent to lawmakers in a letter dated June 24, includes “entities owned by, controlled by, or affiliated with China’s government, military, or defense industry,” Pentagon spokesman Jonathan Hoffman said in a statement, Bloomberg News reported.
“As the People’s Republic of China attempts to blur the lines between civil and military sectors, ‘knowing your supplier’ is critical,” Hoffman said. “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.”
The list of companies linked to the People’s Liberation Army was mandated under the Defense Authorization Act of 1999, but this is the first administration to release the report.
It could expose the companies to financial sanctions.
The release of the list comes at a time of increasing tensions between Washington and Beijing over the spread of the coronavirus, trade issues, and China’s move to quell protests in Hong Kong.
“The list put out today by the Pentagon is a start but woefully inadequate to warn the American people about the state-owned and -directed companies that support the Chinese government and Communist Party’s activities threatening U.S. economic and national security,” Sen. Marco Rubio, a Florida Republican, said in a statement.
“The list only touches the surface of the Chinese government’s exploitation of U.S. capital markets at the expense of retail investors and pensioners by omitting the networks of affiliated and subsidiary companies,” it said.
Hangzhou Hikvision Digital Technology Co., a manufacturer of video surveillance equipment, called the Pentagon’s actions “baseless” and claimed it is an “independently operated enterprise.”
It said it would work with the US government to “correct misunderstandings about the company.”
Bloomberg said requests for comment to China’s foreign and defense ministries were not immediately returned.
The country is celebrating the Dragon Boat Festival national holiday.
The companies on the list include:
- 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
- Huawei Technologies Co.
- Hangzhou Hikvision Digital Technology Co.
- 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 Power Corp.
- China Telecommunications Corp.