US adds Sinochem and 10 others to list of Chinese military-backed firms
- Trump administration says companies are owned or controlled by China’s armed forces
- Listing does not trigger penalties but president may impose sanctions
The new list comes after the Pentagon earlier this year designated 20 top Chinese firms as Chinese military companies operating directly or indirectly in the United States, including those “owned or controlled” by the People’s Liberation Army that provide commercial services, manufacture, produce or export.
The updated list, released on Friday by the Pentagon, also included China Three Gorges Corporation, Sinochem Group and China Spacesat.
The Pentagon’s designations do not trigger penalties, but a 1999 law that mandates compilation of the list says the president may impose sanctions that could include blocking all property of the listed parties.
The Pentagon has come under pressure from lawmakers of both major US political parties to publish the list, amid rising tensions between Washington and Beijing over technology, trade and foreign policy.
The list is likely to add to tensions between the world’s two largest economies, which have been at loggerheads over the handling of the coronavirus pandemic and China’s move to impose security legislation on Hong Kong, among multiple points of friction that have worsened this year.
