The Trump administration is sounding the alarm on the backing of top tech firms by the Chinese military.
According to The Washington Free Beacon:
WASHINGTON (Reuters) – The Trump administration has determined that top Chinese firms, including telecoms equipment giant Huawei Technologies and video surveillance company Hikvision, are owned or controlled by the Chinese military, laying the groundwork for new U.S. financial sanctions, according to a document seen by Reuters on Wednesday.
The list of 20 companies that Washington alleges are backed by the People’s Liberation Army also includes China Mobile Communications Group and China Telecommunications Corp as well as aircraft manufacturer Aviation Industry Corp of China.
The designations were drawn up by the Defense Department, which was mandated by a 1999 law to compile a list of firms “owned or controlled” by the People’s Liberation Army that provide commercial services, manufacture, produce or export.
The Pentagon’s designations do not trigger sanctions, but the law says the president may declare a national emergency which would allow him to penalize any companies on the list that operate in the United States.
Lawmakers from both political parties pressured the Pentagon to publish the list.