The US bans investing in eight Chinese companies, including DJI and Megvii, for their alleged involvement in surveilling Uyghurs and other minority groups
DJI had already been placed on the Commerce Department’s blacklist in an earlier US trade restriction, so the Treasury action adds a capital-market constraint to an existing pressure campaign.
US investors are barred from investing in DJI, Megvii, and the other named companies, narrowing their access to US investment capital.
Treasury makes the companies’ alleged role in surveillance the stated basis for a financial restriction, alongside the Commerce Department’s prior treatment of DJI.
Second-order effects
Chinese technology companies with surveillance-related exposure face stronger incentives to separate US-facing financing and commercial operations from restricted entities.
US investors and funds must screen holdings for the newly named companies, extending compliance work already required by the broader 59-company investment prohibition.
Third-order effects
Layering investment restrictions onto trade blacklists points to a US policy model that can constrain Chinese technology firms through both market access and capital access.
If applied across more surveillance-linked companies, that model would make corporate ties to state security uses a more consequential determinant of cross-border technology finance.
The trend: The US is increasingly using financial-market restrictions alongside trade controls to limit exposure to Chinese technology companies linked to surveillance concerns.
Today, Treasury's OFAC identified 8 Chinese technology firms as part of the Chinese Military Industrial Complex. These 8 entities actively support the biometric surveillance & tracking of ethnic & religious minorities in China. https://home.treasury.gov/...
Huge day for U.S. action on China: As scooped by @Dimi, Treasury has added eight Chinese companies — including DJI, the world's largest commercial drone manufacturer — to an investment blacklist for helping surveil Uyghurs in Xinjiang. https://www.axios.com/...
WHAT? Goldman Sachs and Sequoia Capital have been directly funding a Chinese artificial intelligence company *to help the People's Liberation Army gain an advantage on the battlefield versus the United States.* https://www.washingtonpost.com/ ...
Last year, a Chinese firm agreed to supply battlefield software to a PLA military academy. Soon after, Goldman Sachs invested in the firm & started helping it IPO There was nothing illegal about GS's moves. Critics say that's the problem. w @nakashimae https://www.washingtonpost.…
🚨 Important article. Like the debate on CFIUS reform, Washington policy change often starts only when there is a clear understanding of the WHY question. @nakashimae's detailed story helps answer it. Critical to watch how WH and Congress now react https://www.washingtonpost.com…
In 2020, a Chinese AI company won a contract from a Chinese military academy to provide battlefield command software. What happened next? Goldman Sachs invested in the company, helping it raise $700 million. https://www.washingtonpost.com/ ...