WASHINGTON (Reuters] -The U.S. Defense Department has added Chinese companies to a blacklist, which makes them subject to an investment ban.
BGI Genomics Co Ltd (which runs a large gene databank and has DNA sequencing contracts worldwide) and CRRC Corp (which makes and sells rail transit equipment) were among the 13 additional names added to the Pentagon’s Wednesday release.
A Reuters review of company statements and scientific papers last year revealed that BGI used prenatal tests in collaboration with the Chinese military for large-scale research on the genetics of populations.
The Pentagon released a statement saying that the department was determined to counter the People’s Republic of China’s military–civil fusion strategy.
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This strategy was a support to the modernization of the Chinese military by ensuring that it had access to advanced technologies and expertise. It also added that universities and research programs from China were able to acquire and develop these technologies.
This list prohibits the purchase or sale of publicly traded securities in target corporations.
In June 2013, a first tranche of 50 Chinese companies, including Huawei Telecoms Equipment Company, was added to the U.S. List.
The executive order was signed by President Joe Biden at the time. It prohibited U.S. investment into the dozens Chinese companies that were allegedly connected to the defense or surveillance technology sector.
This order was intended to stop U.S. investments in the Chinese military-industrial complex as well as intelligence and security research and developments programs.
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This was part of Biden’s efforts to counter China. He also sought large domestic investments to boost American economic competitiveness as relations between the two largest economies in the world are deteriorating.
The Chinese drone manufacturer stated in a statement that there was no reason why the drone maker had been added to this blacklist.
“DJI is the only drone company that clearly denounces and actively discourages military use of its products,” it stated, noting that it was not a military firm in China or the United States.
It stated that DJI had never manufactured or designed military-grade equipment and that it has never sold or marketed its products to military customers in any country.
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