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Focus on Regulation

Department of Defense Lists Chinese Companies, with Chinese Military Ties, Operating in the United States

On 24 June 2020, the United States Department of Defense made public a list of Chinese companies operating in the U.S. that are associated with the Chinese military.

The Department of Defense has been legally required to maintain such a list under Section 1237 of the 1999 National Defense Authorization Act. The Act requires the Department of Defense to “make a determination of those persons operating directly or indirectly in the United Sates or any of its territories and possessions that are Communist Chinese military companies.”

Within the last year, some members of Congress publicly requested the list.

It remains to be seen whether the Administration will take action against any of these companies. If it decides to take action, the Administration could issue an Executive Order under the International Emergency Economic Powers Act (IEEPA) setting forth specific prohibitions with respect to targeted companies.

A total of twenty companies were listed:

  • Aviation Industry Corporation of China (AVIC)
  • China Aerospace Science and Technology Corporation (CASC)
  • China Aerospace Science and Industry Corporation (CASIC)
  • China Elections Technology Group Corporation (CETC)
  • China South Industries Group Corporation (CSGC)
  • China Shipbuilding Industry Corporation (CSIC)
  • China State Shipbuilding Corporation (CSSC)
  • China North Industries Group Corporation (Norinco Group)
  • Hangzhou Hikvision Digital Technology Co., Ltd. (Hikvision)
  • Huawei
  • Inspur Group
  • Aero Engine Corporation of China
  • China Railway Construction Corporation (CRCC)
  • CRRC Corp.
  • Panda Electronica Group
  • Dawning Information Industry Co. (Sugon)
  • China Mobile Communications Group
  • China General Nuclear Corp.
  • China National Nuclear Corp.
  • China Telecommunications Corp.