US Adds Drone Maker DJI, 7 Other Chinese Companies To Investment Blacklist
As a result, US investors will be prohibited from buying or selling company stocks.
“Today’s action highlights how private companies in China’s defense and surveillance technology sectors are actively cooperating with government efforts to suppress members of minority ethnic and religious groups,” Brian said. Nelson, Under Secretary for Terrorism and Financial Intelligence. “The Treasury remains committed to ensuring that the US financial system and US investors do not support these activities.”
Dozens of Chinese companies and organizations were added to this export blacklist by the US Department of Commerce on Thursday, in an effort to limit China’s use of US technology for military purposes and for violations. presumed human rights.
Thursday’s two announcements came a week after the Treasury imposed similar economic sanctions on two Chinese politicians and a Chinese artificial intelligence company, SenseTime.
The drone maker declined to comment ahead of the US Treasury’s announcement on Wednesday. Instead, he referred CNN Business to a previous statement made in response to earlier restrictions last December, when he said he had “done nothing to justify being listed on the entity list.”
DJI added at the time that it was also “evaluating options to ensure that our customers, partners and suppliers are treated fairly”, without elaborating. He declined to provide an update or comment on those plans this week.
Washington’s latest crackdown could create funding problems for the upstart drone maker, which is privately held and headquartered in Shenzhen.
But according to a person familiar with the matter, Sequoia’s investment in DJI is managed by Sequoia Capital China, which operates as a separate legal entity from the US company.
That means he would likely not be affected by a restriction preventing US investment in DJI, the person said.
Raise the temperature
Washington has recently put pressure on Chinese companies.
Likewise, the Treasury Department said the decision to block SenseTime was due to the role its technology allegedly played in enabling human rights violations against Uyghurs and other Muslim minorities in Xinjiang.
The company said the delay was aimed at “protecting the interests of the company’s potential investors” and allowing them to “consider the potential impact” of the US move on any investment.
Separately, the FT reported earlier this week that US officials were deliberating whether to toughen up the rules for selling to one of China’s leading chipmakers. No action was taken on Thursday, however.
The SMIC did not respond to a request for comment.
Separately, last year, the US Department of Defense also added the company to a list of companies that the agency says are owned or controlled by the Chinese military. This decision means that Americans are prohibited from investing in the minimum wage.
The Chinese Foreign Ministry on Wednesday criticized the United States after reports of the crackdown planned by Washington.
During a briefing, spokesman Zhao Lijian called on the Biden administration to stop “politicizing” technological and economic issues by “generalizing the concept of national security.”
“Stop abusing state power to unreasonably oppress specific sectors and companies in China,” Zhao said, warning that sanctions against companies like DJI would threaten global industrial and supply chains and undermine international trade rules.
“China will, as always, firmly defend the rights and legitimate interests of Chinese companies,” he added.
– CNN’s Beijing office and Jill Disis contributed to this report.