In a significant escalation of the US-China tech rivalry, a powerful group of nine senior American lawmakers has formally requested the Pentagon to place 17 prominent Chinese technology companies on a strict blacklist. The targeted firms include smartphone behemoth Xiaomi and the AI sensation DeepSeek, which recently wowed the global tech community with its R1 model launch in January 2025.
The Congressional Push for a Wider Blacklist
The lawmakers, in a direct letter to US Defense Secretary Pete Hegseth, have urged the Department of Defense to add these companies to the official 1260H list. This list specifically identifies entities believed to have links to the Chinese military. The core objective of this move is to prevent American taxpayer money from indirectly supporting the modernization and capabilities of the People's Liberation Army (PLA).
The bipartisan group argues that these 17 companies represent the next logical tranche of contributors to China's national strategy of military-civil fusion. This strategy aims to blend commercial technological advancement with military development.
Who Are The Key Lawmakers Behind The Move?
The letter carries significant weight due to the high-ranking positions of its signatories. The group is led by John Moolenaar, the Chairman of the Select Committee on the Chinese Communist Party. Other notable signatories include:
- Rick Scott, Chairman, Senate Special Committee on Aging
- Eric A. “Rick” Crawford, Chairman, House Permanent Select Committee on Intelligence
- Andrew R. Garbarino, Chairman, Committee on Homeland Security
- Rob Wittman, Chairman, House Armed Services Subcommittee on Tactical Air and Land Forces
- Bill Huizenga, Chairman, House Foreign Affairs Subcommittee on South & Central Asia
In their communication, the lawmakers stated, "The firms listed below represent military-civil fusion contributors central to PLA modernization, internal-security operations, and power-projection capabilities." They emphasized that blacklisting them would align with Congress's intent to stop US funds from underwriting Chinese military and security capabilities.
A Broad Spectrum of Chinese Tech in the Crosshairs
The proposed blacklist casts a wide net across critical and emerging technology sectors, highlighting US concerns about Chinese dominance in these fields. The companies are categorized by their primary technological focus:
Biotech, Genomics, and Life Sciences Manufacturing: This sector includes giants like WuXi AppTec, WuXi Biologics, and the GenScript Group, pointing to concerns over biological data and research.
Sensing, Surveillance, Robotics, and Embodied AI: Firms such as Tiandy Technologies, Unitree Robotics, RoboSense, and the Beijing Humanoid Robotics Innovation Center are targeted here, focusing on hardware and AI with potential dual-use applications.
Consumer Smart-Device Ecosystems: The inclusion of Xiaomi Corporation is particularly notable due to its massive market presence in countries like India and China, raising questions about data security and supply chain influence.
Large-Scale Artificial Intelligence Model Developers: This category features DeepSeek, the AI research company that made global headlines in early 2025 with its advanced R1 model, underscoring the geopolitical battle for supremacy in foundational AI.
Display and Imaging Components: BOE Technology Group and Tianma Microelectronics, leading display panel manufacturers, are listed, targeting the electronics supply chain.
Semiconductors, Advanced Materials, and Manufacturing Equipment: Companies like Hua Hong Semiconductor and Kingsemi are included, aiming at China's chipmaking ambitions.
Power Batteries & Energy Storage: Gotion High-Tech, a major player in EV batteries, rounds out the list, highlighting the strategic importance of energy technology.
Implications and Global Tech Fallout
If the Pentagon acts on this request, the consequences for the listed companies could be severe. Inclusion on the 1260H list would prohibit the US Department of Defense from procuring any goods or services from these entities. It would also act as a strong signal to the global market and allied nations, potentially leading to further restrictions and a chilling effect on partnerships.
For the global technology sector, especially in markets like India where companies like Xiaomi have a dominant share, this move could force difficult decisions regarding supply chains and partnerships. It represents another front in the ongoing technological decoupling between the US and China, with ripple effects felt worldwide. The targeting of cutting-edge AI firms like DeepSeek indicates that future innovation, not just current products, is now a central battleground in this strategic competition.
