Quectel sues US DoD over blacklisting

Chinese wireless communications module maker Quectel Wireless Solutions sued the US Department of Defense recently after Washington placed the company on a blacklist of firms allegedly linked to China's military.

"Quectel has always operated with integrity, transparency and full compliance with the laws and regulations of every jurisdiction in which we do business," the company said in a statement, strongly denying any ties to the Chinese military.

The lawsuit challenges the Pentagon's January decision to add Quectel to a list of so-called Chinese military companies. Quectel is one of the world's largest suppliers of wireless communication modules used in IoT (the internet of things) devices, ranging from smart cars and industrial equipment to logistics systems and consumer electronics.

The Pentagon has increasingly expanded its blacklist of Chinese technology firms in recent years as Washington seeks to curb Beijing's rise in technology. The latest list of Chinese companies, mandated under US law as the "Section 1260H list", designated 134 companies, including chipmaker ChangXin Memory Technologies, Quectel Wireless Solutions and drone maker Autel Robotics.

In fact, the move came just weeks after the Pentagon removed two companies, including Advanced Micro-Fabrication Equipment Inc China, a leading Chinese chip equipment manufacturer, from the blacklist.

AMEC, which said it has never been involved in military activities, filed a federal lawsuit against the decision in August. The court ruled in December that there was "insufficient evidence" to justify the decision.

In 2021, Chinese smartphone maker Xiaomi filed a lawsuit against the US DoD over the same blacklist. Four months later, Xiaomi was removed from the list.

Last year, the Pentagon also removed six companies it said no longer met the requirements for the designation, including artificial intelligence company Beijing Megvii Technology, China Railway Construction Corp, China State Construction Group and China Telecommunications.

Tu Xinquan, dean of the University of International Business and Economics' China Institute for WTO Studies, said that US suppression has become increasingly unreasonable and lacks legitimacy.

"Their goals have been unmasked, that is, to suppress emerging Chinese companies and industries and curb China's tech rise at minimal cost," Tu said.

"However, the more Washington escalates its measures against China, the less effective these measures prove to be, and the more they reveal their underlying fears," he said.

Brian Tycangco, an editor and analyst at Stansberry Research, posted on social media platform X, "It's turning out that if you're an innovative Chinese business making money, you're likely to be considered a threat to US national security."

chengyu@chinadaily.com.cn