Restrictions on Chinese firms harm US interests
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S E E D E D C O N T E N T
Restrictions on Chinese firms harm US interests
The building of US Department of the Treasury is seen on March 27, 2020 in Washington DC. [Photo/Agencies]
The United States government's move to add dozens of Chinese companies and institutes to investment and export blacklists once again shows that Washington is employing political motives to disrupt business decisions and such moves will further impede international cooperation in technology, experts said.
The comments came after the US Treasury Department on Thursday added eight more Chinese companies, including artificial intelligence pioneer Megvii, to an investment blacklist.
Separately on the same day, the US Commerce Department put an additional 34 Chinese companies and institutes, including cable system maker Jiangsu Hengtong Marine Cable Systems Co Ltd, on an entity list, which restricts exports of US technologies and components to these firms.
Bai Ming, deputy director of the international market research department at the Chinese Academy of International Trade and Economic Cooperation, said Washington has repeatedly resorted in recent years to political maneuvers to hinder normal business and investment decisions by putting a growing number of Chinese companies on blacklists.
"The latest moves will only further hurt the interests of suppliers in the US and impede international cooperation, especially as the world is still struggling with disrupted supply chains amid the COVID-19 pandemic," Bai said.
Leading Chinese AI players Megvii, CloudWalk Techology and Yitu Technology are among the eight Chinese entities that were newly placed on a list of alleged Chinese military industrial complex-related companies. US investors are barred from taking financial stakes in these companies.
Megvii said it strongly opposed the decision, and called related allegations "groundless".
"Our business is focused on the well-being and safety of individuals. We are committed to making sure our technology has a positive impact on society, and to complying with all laws and regulations in countries and regions where we operate," Megvii said.
Chinese security software and telecommunications solutions company Leon Technology Co Ltd also said in a statement that it does not operate in the US market and being included on the US investment blacklist will not have a significant impact on its normal operations, nor the products and services it provides to customers.
Just one week ago, the US government announced it placed facial recognition specialist Sense-Time on the investment blacklist. Since then, SenseTime has postponed its plans for an initial public offering in Hong Kong.
Xiang Ligang, director-general of the Information Consumption Alliance, a telecom industry association, said Chinese AI, drone and telecom companies are emerging as globally competitive players, which is fueling anxiety among some US politicians.
"The moves will only have a limited impact on Chinese tech companies, and US suppliers and investors will suffer more given that the Chinese companies are all promising tech pioneers," Xiang said.
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Will America EVER stop shooting itself in the foot?