Trouble is not about to end for Huawei, the Chinese telecom giant leading the global 5G rollout. The Pentagon has drawn up a list of 20 Chinese companies, including Huawei Technologies Co. and Hikvision Digital Technology Co., that it believes are either owned or controlled by the Chinese military, according to a copy of the document – potentially paving the way for new financial sanctions.
In an exclusive report by Reuters, (Exclusive: Trump administration says Huawei, Hikvision backed by Chinese military), Huawei and other major Chinese firms could get further frozen as the Trump administration ramps up its trade war on China.
Last year, the US blacklisted Huawei and Hikvision over national security concerns and has led an international campaign to convince allies to exclude Huawei from their 5G networks.
The Trump administration has determined that top Chinese firms, including telecoms equipment giant Huawei Technologies and video surveillance company Hikvision (002415.SZ), are owned or controlled by the Chinese military, laying the groundwork for new U.S. financial sanctions, says Reuters.
The report by Reuters further states:
“A Department of Defense (DOD) document listing 20 companies operating in the United States that Washington alleges are backed by the Chinese military was first reported by Reuters.
The DOD document also includes China Mobile Communications Group (0941.HK) and China Telecommunications Corp [CTTTC.UL] as well as aircraft manufacturer Aviation Industry Corp of China [SASADY.UL].