On October 5, the U.S. Department of Defense released a blacklist that added 13 Chinese companies and restricted Americans from investing in them.
The list included the drone maker DJI Technology and surveillance equipment maker Zhejiang Dahua Technology (002236.SZ). Also, there was BGI Genomics Co Ltd (300676.SZ), which manages a significant gene database and has agreements for DNA sequencing with hospitals and institutions worldwide. The CRRC Corp (601766.SS), a supplier of rail transit equipment, existed on the list.
The Department highlighted and countered the PRC Military-Civil Fusion strategy. Because it supports the People’s Liberation Army’s (PLA) modernization goals by ensuring its access to advanced technologies and expertise acquired and developed by PRC companies, universities, and programs that appear to be civilian entities.
Last year, a Reuters review of scientific papers and company statements found the Chinese military collaborated with BGI to develop its prenatal tests and was using them to collect genetic data for extensive research on the features of populations.
The list prohibited the purchase or sale of publicly traded securities in target enterprises.
Last June, the Department of the Treasury enforced and updated 59 Chinese companies with alleged ties to defense or surveillance technology sectors to its first blacklist that banned American entities from investing in them. Those included telecoms equipment maker Huawei (HWT.UL).
The order aimed to prevent U.S. investment from supporting the Chinese military-industrial complex, military, intelligence, and security research and development programs.
It was part of Biden’s broader series of steps to counter China, including reinforcing American allies and pursuing significant domestic investments to increase American economic competitiveness.