WHY DOES IT MATTER?
The designation offers a glimpse into how Washington views the relationship between China’s commercial sector and military development as geopolitical competition intensifies, said analysts.
“In a way, (the list) reflects the strategic thinking of the US towards China – (that) the Chinese government is using commercial companies to support its military research and capabilities,” said Benjamin Ho, an assistant professor at the S Rajaratnam School of International Studies (RSIS) in Singapore.
Some of the designated entities are consumer product companies, Ho noted, citing EV maker BYD as a notable example.
“It’s almost like the Pentagon saying that traditionally Chinese consumer product companies are not spared from this investigation, and the fact they are being tied or linked to the PLA,” said Ho, who is also coordinator of RSIS’ China programme.
“So it’s almost like a whole-of-government approach against China, that anything that can be linked back to the PLA will be seen as a threat to the United States.”
The Pentagon list states many of the designated firms as having links to the State-owned Assets Supervision and Administration Commission of the State Council and other Chinese state organs.
Wang Haolan, a research associate at the Asia Society Policy Institute’s (ASPI) Center for China Analysis, pointed out that the Pentagon did not provide “detailed evidence” to support its assertions.
“This is like saying that all US companies are tied to the military because they have contacted and fall under the jurisdiction of the FCC (Federal Communications Commission ) or the Commerce Department,” Wang told CNA.
“This is a political statement more than any substantial national security-driven pursuit,” he added.
