Chinese semiconductor company Advanced Micro-Fabrication Equipment Inc. China (AMEC) announced on Friday that it has formally filed a lawsuit with a US court, suing the US Department of Defense (DOD) for its decision to include the company on the list of so-called “Chinese military companies” (CMC). AMEC asked the court to order the DOD to revoke its “erroneous decision” and remove the Chinese firm from the CMC list.
Observers said that the lawsuit shows that Chinese companies, in the face of the US government’s discriminatory measures, could use legal means to protect its legitimate interests. It is also an effective way to fight back against the US government’s relentless crackdown.
“Since being included on the CMC list, AMEC has made every effort to communicate with the DOD and clarify the facts. We provided ample evidence proving that AMEC does not meet the criteria for the CMC list, and also requested removal from the CMC list,” AMEC said a post on the company’s Wechat account.
The company noted that regrettably, its request had not been met as of the date of this lawsuit, and it had to resort to legal action to “protect the company’s legal rights, safeguard the interests of its shareholders, customers, and partners, and eliminate misunderstandings.”
“We believe that the court will make a fair judgment and remove AMEC from the CMC list. At the same time, we are willing to continue communicating with DOD to amicably and properly resolve the existing disputes,” chairman and general manager of AMEC Yin Zhiyao was quoted as saying in a post on the company’s Wechat account.
AMEC also stressed that it has always adhered to legal and compliant operations, strictly abided by domestic and international laws and regulations, and has never been involved in any military-related activities.
Li Haidong, a professor at the China Foreign Affairs University, told the Global Times on Friday that the lawsuit “lays bare US politicians’ politicizing of normal trade activities between China and US through so-called national security concerns, which not only departs from the US’ market rules, violates its constitution and relevant legislation, but has also backfired on US consumers and industries,” Li stressed.
The actions of the US side lacked sufficient legal basis, the procedures were improper, and they did not align with basic facts. The purpose is merely to disrupt or even hinder China’s progress and development in the relevant industries, Lv Yunmou, a research fellow at the China Institute of Contemporary International Relations, told the Global Times on Friday.
In January, the DOD added AMEC to the CMC list, which the department claimed was “in accordance with Section 1260H of the National Defense Authorization Act for Fiscal Year 2021.”
It is not the first time that the Chinese company has been put on a US blacklist. In June 2021, AMEC was removed from another list by the DOD called “Communist Chinese Military Company,” which it was placed on in January the same year, after submitting a petition to DOD with sufficient facts and evidence.
“Trade and economic relations between China and the US should be reciprocal in nature. But now, Washington has spared no efforts in targeting Chinese companies, including creating all kinds of discriminatory lists, posing tremendous barriers to bilateral cooperation,” Li said, while urging the US to remove those restrictions for the benefits of China and the US, as well as the world.
In recent days, the US Department of Defense has decided to remove Chinese tech firm Hesai Technology from its blacklist of Chinese military-affiliated companies after judging that the laser sensor maker did not meet the legal criteria for inclusion, the Financial Times reported on Tuesday, citing sources familiar with the move.
The Pentagon added Hesai to a blacklist in January. In May, Hesai filed a lawsuit against the US Department of Defense for including it on the blacklist, saying that the move had caused it to suffer reputational injury that led to a significant drop in stock prices and business losses.
