Urges Careful Addition of Other High-Risk Firms
WASHINGTON, D.C. — This week the Coalition for a Prosperous America (CPA) welcomed the U.S. Department of War expanding its Section 1260H list of Chinese military companies and praised recent efforts by lawmakers, including Senator Rick Scott (R-FL), to draw greater attention to the threat posed by China’s military-civil fusion strategy.
The Pentagon’s updated list adds several major Chinese firms, including tech giants Alibaba and Baidu; EV manufacturer BYD; semiconductor manufacturers Yangtze Memory Technologies (YMTC) and ChangXin Memory Technologies (CXMT); and Wuxi AppTec, a contract development and manufacturing organization used frequently by U.S. biotech companies. The additions reflect a growing recognition that ostensibly civilian Chinese companies can support the strategic objectives of the Chinese Communist Party (CCP) and the People’s Liberation Army (PLA).
Importantly, in the solar energy industry, Chinese companies JA Solar Technology Co., Ltd. (JA Solar), and also Trina Solar Co., Ltd. (Trina Solar), each now find themselves on the Pentagon’s updated list of “Chinese military companies engaged in providing commercial services manufacturing, producing, or exporting, and operating directly or indirectly in the United States.”
“CPA strongly supports the Administration’s decision to expand the Chinese military companies list,” said CPA President Jon Toomey. “For far too long, U.S. policymakers have underestimated the risks posed by China’s military-civil fusion model, which blurs the line between commercial enterprise and state-directed military objectives. This designation process is an important tool for protecting American national security, supply chains, and industrial capacity.”
CPA also urged DoW to continue expanding the list to include additional Chinese companies with significant strategic importance to U.S. supply chains and critical industries. Among those firms not listed, and warranting further review, are China Hailiang Group – a major producer of copper products, pipe, and tube; and Zhejiang Geely Holding Group Co., Ltd. – one of China’s largest automotive conglomerates.
“The Pentagon should continue identifying companies that contribute to China’s industrial and military ambitions while benefiting from access to U.S. markets,” Toomey said. “American policymakers cannot afford to separate economic security from national security. Companies operating within China’s state-directed system must be evaluated accordingly.”
CPA has repeatedly supported – as the Pentagon has stated – that the Section 1260H list is intended to counter the People’s Republic of China’s (PRC) Military-Civil Fusion strategy, which enables the Chinese military to leverage technologies, expertise, and resources developed by ostensibly private firms.
CPA supports stronger scrutiny of Chinese firms operating in strategic sectors and for policies that rebuild domestic manufacturing, reduce dependence on China-centered supply chains, and protect critical industries from unfair competition and foreign state influence.
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