Web Stories Thursday, February 22

WASHINGTON : The United States added more than a dozen Chinese companies to a list created by the Defense Department that highlights entities that are alleged to work with Beijing’s military, a U.S. official said on Wednesday.

New additions to the list include memory chip maker YMTC, artificial intelligence company Megvii, lidar maker Hesai Technology and tech company NetPosa.

While being placed on this list doesn’t involve immediate bans, it carries significant reputational risk for the designated companies and represents a stark warning to U.S. entities about the risks of conducting business with them. It could also add pressure on the Treasury Department to sanction the companies.

In addition, the 2024 NDAA added some teeth to the list, prohibiting the Defense Department under Section 805 of the law in coming years from contracting with any of the designated companies.

Chinese embassy in Washington did not immediately respond to a request for comment.

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