According to a source, the US presidential administration believes that leading Chinese companies, including the world’s largest telecommunications equipment manufacturer Huawei Technologies and Hikvision – a video surveillance company specializing in technology are owned or controlled by the Chinese military, laying the groundwork for new U.S. financial sanctions.
Last year, Washington blacklisted Huawei and Hikvision for security reasons, and launched an international campaign to persuade its allies to exclude Huawei from 5G networks.
According to Reuters, the current document prepared by the US Department of Defense lists 20 companies operating in the United States that are allegedly associated with the People’s Liberation Army of China.
In addition to Huawei Technologies and Hikvision, the list includes telecommunications companies China Mobile Communications Group and China Telecommunications Corp, as well as aircraft manufacturer Aviation Industry Corp of China.
According to the law adopted in 1999, the list prepared by the Pentagon gives the president grounds for sanctions, which, in particular, may include blocking all property of the listed parties.
The Defense Department list also includes China Railway Construction Corp, China Aerospace Science and Industry Corp (CASIC), as well as CRRC, the world’s largest maker of passenger trains, which has clinched contracts in Boston, Philadelphia, Chicago and Los Angeles by underbidding rivals.
The companies did not immediately respond to requests for comment.
Many of the firms listed are already in the crosshairs of U.S. regulators. The blacklisting of Huawei and Hikvision has forced some of their U.S. suppliers to seek licenses before selling to them.
