Key facts
- The Pentagon has expanded its blacklist of Chinese companies.
- The designations are made under Section 1260H of the National Defence Authorisation Act.
- Legal experts warn of increased reputational risks and potential US investment curbs for targeted firms.
The Pentagon has expanded its list of Chinese companies deemed to be "Chinese military companies" under a specific section of the National Defence Authorisation Act. This move, detailed in a Federal Register notice, is expected by legal experts to heighten reputational risks for these firms and potentially lead to future restrictions on their access to US investment.
The designations fall under Section 1260H of the National Defence Authorisation Act, a provision that allows the US government to identify and potentially penalize companies with ties to the Chinese military. The expansion of this list signals a continued effort by the US to scrutinize and potentially limit the financial and technological reach of Chinese enterprises perceived to be linked to the People's Liberation Army.