US raises security concern after deals into Chinese companies with links to PLA surfaces

The US  Department of state has listed 80 Chinese companies that have links to the People's Liberation Army (PLA) and are mentioned in the US stock exchange, claiming they pose threat to America's national security with some of them even involved in crimes against humanity. The State Department said that US retail investors have been unknowingly investing money, through index funds, which supports Chinese companies involved in both civilian and military production. 

"As of June 2020, at least 22 of the 31 parent-level PRC military companies had affiliates’ securities included on a major securities index, including at least 68 distinct affiliate-level securities issuers; at least 13 PRC firms on the Entity List had affiliates or parent companies included in the MSCI or FTSE stock indices; and the MSCI emerging market index included 230 A-shares Chinese stocks incorporated on the mainland, quoted in renminbi, and listed on Chinese Communist Party-controlled Shanghai and Shenzhen exchanges," State Department said in a statement. 

Read: US Top Official Says China Conducting 'human Testing' For 'biologically Enhanced' Soldiers

'Companies help CCP in surveillance of civilians'

The State Department said that some of the companies produce technologies that are used by the Chinese state for surveillance of civilians and repression of human rights, citing the example of Uighur Muslims in Xinjiang province. China is accused of persecuting the minority Uighurs in Xinjiang through forced labour, sexual and physical abuse, unlawful detention of millions. The State Department alleged that the list also includes companies accused of engaging economically with Iran and North Korea in violation of US sanctions. 

Read: China's State Media Warns Of Dangerous Shift In Sino-US Ties, Calls Damages 'unrepairable'

"Under Xi Jinping, the CCP has prioritized something called ‘military-civil fusion.’ … Under Chinese law, Chinese companies and researchers must – under penalty of law – share technology with the Chinese military. The goal is to ensure that the People’s Liberation Army has military dominance.  And the PLA’s core mission is to sustain the Chinese Communist Party’s grip on power," US State Secretary Mike Pompeo said. 

Read: China Sees Red After US Intel Chief's Comments, Says Ratcliffe 'continues To Repeat Lies'

Lately, the United States has been taking tough action against companies being controlled or owned by the PLA. The Trump administration on Thursday added four more Chinese companies to the blacklist of over 30 firms operating in the United States to highlight the military-civil fusion development strategy of China to ensure its military is getting access to advanced technologies. 

Read: US Blacklists Four More Chinese Firms For Allegedly Being Controlled By Country's Military