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Megvii, Yitu among companies slapped with fresh U.S. sanctions

Megvii, Yitu among companies slapped with fresh U.S. sanctions

Washington has added more names to a list of Chinese firms that could be supporting Beijing’s military-industrial complex, including facial recognition companies Megvii and Yitu.

On Thursday, the Department of Defense updated its so-called Section 1260H list, created to stifle U.S. investment in entities developing dual-use technologies and warn allies against potential national security threats, The South China Morning Post reports.

The list already includes names such as video surveillance equipment makers Hikvision and Dahua alongside facial recognition software maker CloudWalk. Among fresh names added to the list are video surveillance solutions company NetPosa, as well as over a dozen other companies covering industries ranging from telecommunications and semiconductors to construction, chemicals and finance.

The list was created in 2021 under the National Defence Authorisation Act. Listed companies are not banned but are ineligible to compete for Defense Department contracts. The move was part of a wider net of sanctions that the U.S. has introduced against Chinese video surveillance and facial recognition companies, including sanctions from the U.S. Treasury and placements on the Department of Commerce’s Bureau of Industry and Security (BIS) Entity List.

Section 1260H currently includes well-known names in China’s industry such as telecommunications giant Huawei, chip maker Semiconductor Manufacturing International Corp. (SMIC), state-owned power company China Three Gorges Corporation, venture capital firm IDG Capital and Hesai Group, which makes LiDAR or road-sensing equipment.

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