Lawmakers Target Chinese Tech Firms
- A group of U.S. lawmakers is urging the Pentagon to add several Chinese technology companies to a list of entities believed to support China’s military.
- Their request follows the signing of a major U.S. defense spending bill and reflects growing scrutiny of Chinese firms operating in sensitive sectors.
- The move highlights ongoing tensions over technology supply chains and national security.
Push to Expand the 1260H List
Nine U.S. lawmakers sent a letter to Defense Secretary Pete Hegseth calling for the addition of multiple Chinese companies to the Section 1260H list. The request came shortly after President Donald Trump signed a $1 trillion military spending bill into law. DeepSeek, Xiaomi and BOE Technology Group were among the firms the lawmakers said should be included. The list already features major Chinese companies such as Tencent Holdings and battery manufacturer CATL.
Although the 1260H list does not impose formal sanctions, it signals the U.S. military’s assessment of companies that may support China’s defense sector. Suppliers to the Department of War and other government agencies often treat the list as guidance for risk management. Some firms previously added to the list have challenged their inclusion in court. The lawmakers argue that expanding the list is necessary to address emerging threats in artificial intelligence, electronics and semiconductor manufacturing.
Allegations and Supply Chain Concerns
Reuters reported earlier this year that a senior U.S. official accused DeepSeek of aiding China’s military and circumventing export controls. BOE, a major supplier of displays used in Apple devices, was also cited as a company lawmakers want removed from Pentagon supply chains by 2030. The letter additionally recommended adding WuXi AppTec, GenScript Group, RoboSense, Livox, Unitree Robotics, CloudMinds, Hua Hong Semiconductor, Shennan Circuit and Kingsemi. These firms operate across biotechnology, robotics, sensors and chip production, all areas considered strategically sensitive.
The lawmakers who signed the letter include several committee leaders with influence over defense and technology policy. They argue that the U.S. must reduce reliance on Chinese suppliers in critical sectors. Their recommendations reflect broader concerns about intellectual property risks and potential military applications of commercial technologies. The Pentagon has not yet commented on whether it will act on the request.
Political Context and Regulatory Shifts
The letter arrives during an ongoing debate over how the United States should regulate technology ties with China. States and federal agencies have been reassessing supply chain vulnerabilities as geopolitical tensions rise. Trump has ordered the Defense Department to rename itself the Department of War, a change that will require congressional approval. The renaming underscores the administration’s emphasis on national security in technology policy.
Lawmakers from both parties have increasingly scrutinized Chinese firms involved in advanced computing, telecommunications and manufacturing. The Section 1260H list has become a tool for signaling strategic concerns without imposing direct penalties. Companies placed on the list may face reputational challenges and heightened due‑diligence requirements from U.S. partners. The latest recommendations suggest that Washington’s focus on Chinese technology firms will continue to intensify.
Xiaomi was previously placed on a U.S. military blacklist in 2021 but successfully sued to have the designation removed, highlighting the legal complexities surrounding such classifications. Analysts note that Section 1260H differs from sanctions lists because it does not restrict transactions, yet it often influences procurement decisions. The growing number of Chinese firms operating in AI, robotics and semiconductors has made the list a key indicator of U.S. strategic priorities. Future updates may further reshape global technology supply chains as competition between the two countries deepens.
