Nine Republican lawmakers urged the Pentagon this week to add 17 Chinese technology companies to its military-linked entities list. The December 19 letter targets firms including AI developer DeepSeek, smartphone maker Xiaomi, and display manufacturer BOE Technology Group.
The request came hours after President Donald Trump signed a military spending bill into law, with reports varying between $900 billion and $1 trillion. Lawmakers want these companies added to the Section 1260H list maintained by the Department of Defense.
Section 1260H was established under the 2021 National Defense Authorization Act. It identifies Chinese companies believed to support China's military through Beijing's Military-Civil Fusion strategy.
The list already includes major Chinese firms Tencent Holdings and battery maker CATL. Inclusion doesn't impose formal sanctions but warns US government agencies and defense contractors about potential risks.
DeepSeek faces particular scrutiny after Reuters reported in June that US officials accused the AI firm of aiding China's military and evading export controls. BOE Technology, an Apple supplier, is part of a broader push to remove Chinese display manufacturers from US defense supply chains by 2030.
Other companies recommended for addition include semiconductor manufacturers Hua Hong Semiconductor, Kingsemi, and Shennan Circuit. Robotics and sensing firms RoboSense, Livox, Unitree Robotics, and CloudMinds also appear on the list.
Biotechnology companies WuXi AppTec and GenScript Group round out the 17 firms. The lawmakers argue these companies represent the "next logical tranche" of contributors to China's military-industrial capabilities.
Several of the nine signatories chair key congressional committees, including the Select Committee on China and House Armed Services Committee. Their letter emphasizes that US taxpayer funds should not support Chinese military or intelligence infrastructure.
Chinese companies previously added to the 1260H list have challenged their inclusion in US courts. Several firms, including drone maker DJI, have filed lawsuits arguing they have no military affiliations.
The Pentagon must update the 1260H list annually through 2030 under the 2021 defense authorization statute. This latest request reflects ongoing US efforts to limit China's access to advanced dual-use technologies.
Washington's focus spans artificial intelligence, semiconductors, robotics, and advanced displays. These sectors are central to China's military modernization under the Military-Civil Fusion framework.
The move comes amid heightened US-China tensions and cybersecurity concerns. Recent suspected Chinese cyber intrusions targeting Western government systems have intensified scrutiny of technology supply chains.
Analysts expect the 1260H list to play an increasingly prominent role in shaping US-China relations. As Washington reassesses technological ties with Beijing, more Chinese firms may face similar designations in critical technology sectors.
