U.S. banned certain companies from engaging in cooperation with China
The U.S. has imposed restrictions on certain companies preventing them from cooperating with China (photo: Wikimedia)
The U.S. continues to escalate pressure on China by adding companies to the Department of Defense list that could assist Beijing in strengthening its military, according to Reuters.
This decision is part of broader U.S. efforts to safeguard the country's national interests.
The list now includes memory chip maker YMTC, artificial intelligence company Megvii, lidar maker Hesai Technology, and tech company NetPosa.
Against the backdrop of deteriorating relations between the U.S. and China, the updated list marks another step by Washington to restrict Chinese military potential.
The Chinese Embassy in Washington has issued a statement expressing protest against the U.S. decision to include new Chinese companies on the Department of Defense list. The embassy deemed this decision illegal and contradictory to the principles of market economy and international trade.
While being placed on the list doesn't involve immediate bans, it can be a blow to designated companies' reputations and represents a stark warning to U.S. entities and companies about the risks of conducting business with them. It could also add pressure on the Treasury Department to sanction the companies.
U.S. restrictions against China
U.S. sanctions against China represent a combination of economic and political restrictions imposed by the U.S. to constrain China's economic growth, military strength, and global influence.
U.S. sanctions on China can be broadly categorized into two main types:
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Trade and Investment-related Sanctions: These sanctions are aimed at restricting China's access to American markets, technologies, and investments. They include limitations on the export of technologies to China, bans on investments in Chinese companies, and restrictions on trade with China.
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Human Rights-related Sanctions: These sanctions target human rights violations in China, these sanctions aim to condemn abuses. They involve restrictions on the travel of Chinese officials, bans on the import of goods produced using forced labor, and limitations on funding for Chinese companies involved in human rights violations.
In the summer of 2023, the U.S. imposed a ban on importing products from the Chinese printer manufacturer Ninestar, as well as the chemical company Xingjang Zhongtai Chemical, citing human rights violations.
Additionally, it was reported that China implemented restrictive measures against the American intelligence company Kharon and two individuals. This move was seen as a response to U.S. sanctions against Beijing.
