China: "Violation of Market Competition and International Trade Rules"
On the 31st of last month (local time), the U.S. Department of Defense added Yangtze Memory Technologies Co. (YMTC), China's largest 3D NAND flash memory manufacturer, to the 'List of Companies Related to the Chinese Military.'
According to the U.S. Department of Defense and major foreign media, the companies newly added to the list on that day include YMTC, AI company Megvii (Kuangshi Keji), LiDAR manufacturer Hesai, a key supplier for autonomous vehicles, and technology company Netposa.
The U.S. Department of Defense stated in a press release that "updating the 'Chinese Military Companies' list is intended to emphasize and respond to China's military-civil fusion strategy." It pointed out that advanced technologies developed by Chinese companies, universities, and research programs that appear to be civilian are supporting the modernization of the Chinese military.
The 2024 National Defense Authorization Act includes provisions that prohibit the U.S. Department of Defense from conducting any transactions with Chinese companies listed on this list.
The U.S. Department of the Treasury may also impose separate sanctions on these companies.
China Three Gorges Corporation, China Construction Technology, E2 Network Technology, Chengdu Zhuo Automation, Chengdu M&S Electronic Technology, Guizhou Aircraft Development, Shenzhen Consys Science & Technology, and others were also added to the list of Chinese military-related companies on the same day.
Previously, the U.S. included about 50 companies, including Huawei, on the list in 2021, and the following year added DJI, the world's largest commercial drone manufacturer, BGI Genomics, China's largest gene company, and China National Railway Rolling Stock Corporation (CRRC), a state-owned train manufacturer.
China immediately protested the U.S. decision, stating that it harms normal economic and trade cooperation.
On the 1st, Wang Wenbin, spokesperson for the Chinese Ministry of Foreign Affairs, said at a briefing, "We firmly oppose the U.S. generalizing the concept of 'national security,' creating discriminatory lists under various pretexts to irrationally suppress Chinese companies, and damaging normal economic and trade cooperation between China and the U.S." He also pointed out, "The U.S. actions violate the market competition principles and international trade rules that the U.S. has consistently boasted about."
Spokesperson Wang added, "In fact, the U.S. government itself is a major promoter of the military-civil fusion policy, and many large American multinational corporations are part of the military-civil fusion system. The U.S. military-civil fusion policy dates back to before World War I, with the Department of Defense establishing offices in scientific and technological hubs like Silicon Valley and guiding advanced companies to accelerate the militarization of technology."
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