Huawei was among 20 Chinese companies that were designated by the USA as those having links with Chinese military. A US Department of Defence document, that had the list of these companies does not mean that immediate penalties will be levied on these companies but it may make way clear for sanctions against these firms. All these companies are operating in US and other countries in the world. In past, Huawei has been put on a trade blacklist by the US. Media reports said that these companies are "entities owned by, controlled by, or affiliated with China's government, military, or defence industry".
Pentagon's document may open a new chapter of hostility between the US and China.
These are the Chinese companies mentioned by Pentagon in its document:
- Aviation Industry Corporation of China
- China Aerospace Science and Technology Corporation
- China Aerospace Science and Industry Corporation
- China Electronics Technology Group Corporation
- China South Industries Group Corporation
- China Shipbuilding Industry Corporation
- China State Shipbuilding Corporation
- China North Industries Group Corporation
- Hangzhou Hivision Digital Technology Co
- Inspur Group
- Aero Engine Corporation of China
- China Railway Construction Corporation
- CRRC Corp
- Panda Electronics Group
- Dawning Information Industry Co
- China Mobile Communications Group
- China General Nuclear Power Corp
- China National Nuclear Corp
- China Telecommunications Corp.
"As the People's Republic of China attempts to blur the lines between civil and military sectors, 'knowing your supplier' is critical. We envision this list will be a useful tool for the US government, companies, investors, academic institutions, and like-minded partners to conduct due diligence with regard to partnerships with these entities, particularly as the list grows," Pentagon Spokesperson Jonathan Hoffman was quoted as saying.
There hasn't been an immediate response from China.
The USA and China have been at loggerheads, more recently over coronavirus pandemic. Coronavirus pandemic originated in China. However, the situation in China is relatively stable while US is now the global hotspot of coronavirus cases. More than 1 lakh Americans have lost their lives due to coronavirus infection.
US President Donald Trump has maintained that "Chinese" coronavirus was artificially developed and has accused World Health Organisation (WHO) of being "soft" on China. Trump went to the extent of declaring that USA was severing all ties with the WHO.