The U.S. Department of Defense (DOD) has designated dozens of Chinese companies, including tech giant Tencent and battery maker CATL, as companies linked to the Chinese military, the department said on Monday.
New additions to the list also include companies in sectors including artificial intelligence (AI), the Internet of things (IoT), drones, shipping, and subsidiaries of previously designated companies, according to a notice published in the Federal Register.
Since 2021, the DOD has been required by law to compile a list of Chinese military companies operating in the United States, or the Section 1260H list. The annually updated list now includes 134 companies that allegedly support the Chinese military, compared to 73 companies listed a year ago.
Six companies were removed from the list on Monday, including China Marine Information Electronics, Beijing Megvii Technology, China Marine Information Electronics Company Limited, China Railway Construction Corporation Limited, China State Construction Group, China Telecommunications Corporation, and Shenzhen Consys Science & Technology.
The designation alone currently doesn’t carry any direct legal ramifications, but the National Defense Authorization Act for fiscal year 2024 banned the DOD from procuring goods, services, or technology wholly or partially originating from companies on the Chinese military companies list. Other businesses may also opt to avoid dealing with companies on the list.