US Treasury Likely to Add 8 Chinese Companies to Blacklist on the 16th

[Photo by Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] Major foreign media reported on the 14th (local time) that the U.S. Department of the Treasury plans to add eight Chinese companies, including DJI, the world's largest commercial drone manufacturer, to the so-called blacklist, which prohibits investment.

According to two officials, the U.S. Treasury will add DJI and other Chinese companies to the "Chinese Military-Industrial Complex (CMIC)" blacklist on the 16th. The U.S. Treasury has already placed 60 Chinese companies on the blacklist, restricting U.S. investors from investing in them. U.S. investors are prohibited from acquiring financial stakes in these 60 companies.

In addition to DJI, companies related to supercomputers, cybersecurity, and artificial intelligence (AI) cloud computing are also targeted for sanctions. The U.S. government is expected to justify these sanctions by citing these companies' involvement in surveillance technology targeting the Uyghur population.

Facial recognition technology company Megvii is also expected to be added to the blacklist.

Previously, there were reports that Megvii's competitor, SenseTime, would be added to the blacklist.

After news of SenseTime's potential addition to the blacklist, the company withdrew its planned listing on the Hong Kong Stock Exchange scheduled for the 17th. SenseTime is currently reviewing its investment proposal.

U.S. private equity firm Silver Lake holds a 3% stake in SenseTime, and Fidelity and Qualcomm also hold shares in the company. If SenseTime is listed on the Treasury Department's blacklist, Silver Lake and others are expected to dispose of their holdings.

All eight companies potentially to be listed on the Treasury Department's blacklist are reportedly already included in the Commerce Department's Entity List, according to foreign media. Companies on the Commerce Department's blacklist cannot receive products or technology exports from U.S. companies without government approval.

According to officials, the Commerce Department is also expected to add about 20 Chinese companies to the Entity List on the 16th, separate from the Treasury Department's actions.

Additionally, foreign media reported that the U.S. government is considering strengthening regulations on SMIC, China's largest semiconductor foundry.

This content was produced with the assistance of AI translation services.