Nine U.S. lawmakers are urging Defense Secretary Pete Hegseth to add more Chinese tech companies to a Pentagon list for firms the U.S. believes help China’s military. The move emphasizes growing strains between the U.S. and China over security and control of supply chains.
The letter, released late Thursday after President Donald Trump signed a $1 trillion military spending bill, asks Hegseth to add AI company DeepSeek, phone maker Xiaomi, and screen maker BOE Technology Group to the Section 1260H list. The lawmakers believe these companies belong with others already suspected of aiding China’s military activities.
The Section 1260H list already includes major Chinese companies like tech giant Tencent Holdings and battery maker CATL, a leader in electric cars. Being on the list does not bring official punishments, but it warns suppliers and U.S. agencies. It signals these companies have ties that could be problematic, which may hurt them commercially and with regulations.
Some Chinese companies have pushed back, suing in U.S. courts to be removed from the list. The letter also comes as Trump seeks to rename the Defense Department as the Department of War, a change that would require Congress and has ignited controversy over its meaning.
Reuters reported in June that a U.S. official accused DeepSeek of helping China’s military and bypassing U.S. export rules. This has put a spotlight on China’s fast-growing AI industry. BOE, an Apple supplier, is also among the Chinese screen makers lawmakers want the Pentagon to cut from its supply chain by 2030.
The lawmakers who signed the letter, all Republicans, some leading important committees, also suggested adding WuXi AppTec, GenScript Group, RoboSense, Livox, Unitree Robotics, CloudMinds, Hua Hong Semiconductor, Shennan Circuit Co., and Kingsemi Co.
The letter was signed by Rep. John Moolenaar of Michigan; Sen. Rick Scott of Florida; Rep. Rick Crawford of Arkansas; Rep. Andrew Garbarino of New York; Rep. Rob Wittman of Virginia; Rep. Bill Huizenga of Michigan; Rep. Dusty Johnson of South Dakota; Rep. Darin LaHood of Illinois; and Rep. Andy Ogles of Tennessee.
Reuters reported earlier that DeepSeek was accused of helping China’s military. The lawmakers also want BOE, an Apple supplier, out of the Pentagon’s supply chain by 2030.
The lawmakers also want to add WuXi AppTec, GenScript Group, RoboSense, Livox, Unitree Robotics, CloudMinds, Hua Hong Semiconductor, Shennan Circuit Co., and Kingsemi Co.
The signers were Reps. Moolenaar, Crawford, Garbarino, Wittman, Huizenga, Johnson, LaHood, and Ogles, and Sen. Scott.
With tensions high over tech and security, this indicates increasing concern in Washington about China’s influence in key industries. It is unclear if the Pentagon will act, but it signals a push to change how the U.S. deals with Chinese firms in areas like AI and chips.
This all means U.S.-China competition might concentrate more on blocking access than open markets. The companies are waiting to see what the Pentagon decides, which could have major consequences.
