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The logo of Chinese company Huawei. Photo: Daniel Leal-Olivas/AFP/Getty Images

The Defense Department is making public for the first time a list of Chinese companies that are operating in the U.S. and are tied to the Chinese military. The list, obtained by Axios, includes Huawei, Hangzhou Hikvision, China Railway Construction Corporation, and China Telecommunications Corporation.

Why it matters: President Trump has the authority to invoke emergency economic powers, including sanctions, against the 20 companies on the list.

Background: The list was required by the 1999 National Defense Authorization Act, but was either not assembled or not made public, until now.

  • It was included as part of a provision regarding the president’s ability to apply the International Emergency Economic Powers Act (IEEPA) to Chinese military-linked companies operating within the United States.
  • In 1999, Congress wanted to ensure that China’s entry to the World Trade Organization wouldn’t help the country access defense technologies that would improve China’s military capabilities against the U.S. or its allies.
The list of Chinese companies that the Department of Defense says are linked to the People's Liberation Army.

Details: IEEPA is a tremendously powerful tool, often wielded through Department of Treasury sanctions, for cutting off foreign companies and individuals from the U.S. finance system. It is not yet known if the new list is a prelude to Treasury actions.

  • “The president can use IEEPA authorities against entities on the list,” says Larry Wortzel, a commissioner of Congress’s U.S.-China Economic and Security Review Commission, who spoke to Axios in his capacity as an individual commissioner.
  • “All of them are the ‘usual suspects,’” said a former senior intelligence official who viewed a copy of the list. “Some have ties to [Ministry of State Security] but all also operate as ‘autonomous collectors.’"

White House national security advisor Robert O'Brien was slated to mention the list in his speech today on the challenge that the Chinese Communist Party's global influence poses to the United States.

What they're saying: "Not only is Hikvision not a “Chinese military company,” Hikvision has never participated in any R&D work for military applications," a Hikvision spokesperson told Axios. "Hikvision has always tried to fully and transparently cooperate with the U.S. government to answer questions and correct misunderstandings about the company. Hikvision will continue to try to work with the US government to resolve all of these matters."

The Department of Defense did not provide comment.

What to watch: “It’s a bark, not a bite, if sanctions (to include prohibition from doing business in the U.S.) don’t follow," said the former official.

Editor's note: This story has been updated to include comment from Hikvision.

Go deeper

Sep 30, 2020 - World

House report: U.S. intelligence agencies have failed to adapt to China threat

Xi Jinping and other Chinese politicians and delegates listen to the national anthem duirng the closing of the 19th Communist Party Congress in 2017. Photo: Lintao Zhang/Getty Images

The House Intelligence Committee on Wednesday released a report finding that the U.S. intelligence community has failed to adapt to the growing threat from China, arguing that it will struggle to compete on the global stage for decades to come if it does not implement major changes.

The big picture: The 200-page report, based on thousands of analytic assessments and hundreds of hours of interviews with intelligence officers, determined that the intelligence community's focus on counterterrorism after 9/11 allowed China "to transform itself into a nation potentially capable of supplanting the United States as the leading power in the world."

In photos: Life slowly returning to normal as restrictions lift across U.S.

Fireworks near the Statue of Liberty in New York City marking the end of New York State's pandemic restrictions in New York State and honoring frontline workers. Photo: Tayfun Coskun/Anadolu Agency via Getty Images

New Yorkers and Californians celebrated most COVID-19 restrictions lifting on Tuesday, as the two states became the latest to move toward fully reopening their economies.

The big picture: The pandemic has now claimed over 600,000 lives in the U.S., but vaccines have helped drive down the seven-day average to roughly 14,000 new cases and fewer than 400 deaths per day, helping most states to ease restrictions.

2 hours ago - World

China's government issues warning after sending 28 planes over Taiwan

A J-11B fighter aircraft from China's air force flying over the Dafangshen airport in Changchun, China. Photo: STR/AFP via Getty Images

China's government issued a warning to "foreign forces" after Taiwan reported a record 28 Chinese military planes flew over the self-governed island's airspace Tuesday, per Reuters.

Why it matters: The warning and deployment of aircraft including fighter jets and bombers comes after G7 leaders issued a statement Sunday urging the Chinese government to respect human rights and calling on peace and "stability across the Taiwan Strait."