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Chinese companies banned in the U.S.: Tech giants on the list

Several Chinese tech giants including Huawei, Tencent and CATL are now on the U.S. CMC list due to security concerns.

Kinza Yasar
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Published: 07 Feb 2025

In recent years, the U.S. government has imposed a series of sanctions and bans against several Chinese tech companies driven by national security concerns, economic competition and geopolitical tensions.

This trend is evident in the U.S. Department of Defense's annual updates to its Chinese Military Companies (CMC) list, which has seen the addition of various companies that are perceived to have close ties to the Chinese government. The latest revision includes 134 companies, with notable additions including social media giant Tencent and battery-maker CATL.

The U.S. government's scrutiny has also extended to TikTok, which boasts 170 million U.S. users and faces the threat of being added to the list in the event that it is banned in the U.S. In April 2024, under the Biden administration, Congress passed bipartisan legislation mandating a ban on TikTok, requiring its parent company, ByteDance, to either sell the platform or face a ban on national security grounds.

This heightened focus on Chinese-owned technology companies is further exemplified by the U.S. Justice, Commerce and Defense departments' ongoing investigation into TP-Link. A report from The Wall Street Journal alleges that TP-Link -- leading manufacturer of various networking devices such as internet routers and modems -- has been linked to several high-profile hacking incidents, raising concerns about potential security vulnerabilities and ties to malicious threat actors.

The companies added to the CMC list are restricted from accessing U.S. technology and markets, and are hindered from competing globally. Moreover, the impending bans and growing division between the two economic superpowers could trigger ripple effects worldwide, potentially sparking a tech cold war that could disrupt global supply chains, stifle technological innovation and strain international relations.

Let's dive into which Chinese tech companies were added to the recently revised CMC list and the reasons that prompted their inclusion.

1. Autel Robotics Co. Ltd.

Autel Robotics is a Chinese drone manufacturer known for producing consumer and commercial drones, including the popular Autel EVO series. The company's products are used in many sectors, including agriculture, construction, public safety and entertainment.

The decision to add Autel to the revised CMC list is mainly for national security concerns and aligns with broader concerns about Chinese technology companies and their relationships with the government. This action follows the Pentagon's previous ban of drone manufacturer DJI and lidar company Hesai Technology. The companies filed lawsuits against the Pentagon after being placed on the CMC list, but both companies remain on the updated list.

2. Aviation Industry Corporation of China Ltd. (AVIC)

AVIC is a major state-owned aerospace and defense contractor in China. It plays a crucial role in the development and manufacturing of various military aircraft, including fighter jets, drones and helicopters.

It was added to the CMC list due to its significant role in China's defense sector. The U.S. government has concerns that AVIC's activities could pose a threat to U.S. national security interests. This includes concerns about potential technology transfer to the Chinese military, intellectual property theft and the potential for AVIC's technology to be used for military purposes that could harm American interests.

3. ChangXin Memory Technologies Inc.

The chip- and semiconductor-maker ChangXin Memory Technologies was also one of the recent additions to the CMC list, reflecting growing U.S. concerns about the potential for Chinese companies to contribute to the advancement of China's military capabilities.

The semiconductor industry is critical for modern militaries, powering advanced weaponry systems and sophisticated communication networks. To address risks linked to Chinese companies potentially collaborating with the Chinese military, the U.S. Treasury Department also executed a rule in 2024 -- based on an executive order by then-President Joe Biden -- restricting U.S. investments in advanced technologies such as semiconductors, quantum computing and AI systems in China.

4. Contemporary Amperex Technology Co. Ltd. (CATL)

CATL is one of the largest producers of lithium-ion batteries, which are essential for electric vehicles and renewable energy storage. The company, which supplies batteries for Tesla, planned to offer its expertise and services to Ford for the production of lithium-ion batteries at a facility in Michigan. However, the company was recently added to the CMC list and faces a possible investment ban mainly due to concerns regarding its potential ties to the Chinese military and its dominant position in the global battery supply chain.

Although CATL maintains that it has never engaged in military-related business, the U.S. government's decision reflects heightened scrutiny of Chinese businesses in the context of national security.

5. Huawei Technologies Co. Ltd.

Huawei is a Chinese telecommunications equipment and smartphone manufacturer that has been at the center of ongoing trade disputes between the U.S. and China. Accusing Huawei of espionage and links to the Chinese military, the U.S. imposed bans on the company's equipment -- particularly in critical infrastructure -- due to concerns that it could be used for surveillance. As a result, Huawei has been added to the CMC list, which has restricted the company's access to critical semiconductor components and other important technologies.

Additionally, the company's involvement in the global 5G rollout has further fueled tensions, making it a key point of contention in the U.S.-China tech rivalry.

6. SenseTime Group Inc.

SenseTime is an artificial intelligence company specializing in the research, development and application of AI software, with a focus on computer vision and deep learning.

The U.S. government has scrutinized SenseTime for its ties to the Chinese military and government, particularly in the context of surveillance technologies, which led to its recent addition to the CMC list.

7. Tencent Holdings Ltd.

Tencent, the parent company of the popular messaging app WeChat and gaming giant Riot Games, was recently added to the CMC list as part of growing concerns over data security and surveillance. WeChat, with its massive user base in the U.S., collects a vast amount of personal data, which has raised fears among U.S. officials that this information could be exploited by Tencent for industrial espionage, influence operations or other malicious activities, given that the company has close ties to the Chinese government.

Tencent saw its market value drop by more than $35 billion after news of its inclusion on the CMC list surfaced.

Kinza Yasar is a technical writer for WhatIs and has a background in computer networking.

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