- The Department of War has expanded its list of Chinese companies with alleged military ties to 188 entities
- The department will be barred from contracting directly with firms on the list
- Procurement restrictions will broaden in 2027 to include purchases made through third parties
The Department of War has updated its list of Chinese military companies operating directly or indirectly in the U.S., identifying 188 entities that meet the criteria established under federal law.
What Is Included in the Updated List?
The War Department said Monday the update was issued in accordance with Section 1260H of the National Defense Authorization Act for Fiscal Year 2021. Following a review process, the DOW concluded that the companies on the latest list satisfy the statutory requirements for designation.
The updated roster was released through the Public Inspection Issue of the Federal Register. The department noted that additional entities may be added following future reviews.
Companies included on the latest roster include Alibaba, Tencent, Huawei, BYD, CATL, China Mobile, China Telecom, DJI, CXMT, YMTC, Unitree, WuXi AppTec, RoboSense, SMIC and Baidu.
What Are the Implications of the Designation?
The designation does not impose sanctions on the listed companies. However, under existing U.S. law, the War Department will be prohibited from contracting directly with entities on the list later this month. Beginning in 2027, the restriction will expand to cover products and services acquired through third parties.
Companies can be removed from the list for administrative reasons, such as a name change or the discontinuation of U.S. operations, rather than a determination that they lack military ties.
