The U.S. Department of Defense on Tuesday removed a leading Chinese chip equipment maker from a list of Chinese companies the Pentagon said were suspected of cooperating with Beijing's military.
The company – Advanced Microfabrication Equipment Corporation (AMEC) – filed a federal lawsuit against the U.S. Department of Defense in August over its inclusion in Washington in February of “an entity designated as a Chinese military company operating in the United States.” List.
After AMEC was delisted, its stock price rose 4.35%.
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While being placed on the list does not involve an immediate ban, it can be a hit to a designated company's reputation and serve as a warning to U.S. entities and companies about the risks of doing business with them.
The company sought a court order to remove the designation, saying it had never participated in military activities and strictly complied with all laws and regulations.
The U.S. Department of Defense also removed IDG Capital, one of China's largest venture capital and private equity firms, from the list. Originally scheduled to be published on Wednesday.
IDG Capital, which was also added to the list in February, did not file a lawsuit but has previously said it has no ties to the Chinese military and does not belong to the list.
The list includes entities that have been subject to U.S. trade sanctions in recent years, including Huawei Technologies Co. and state-owned aerospace and defense manufacturing group Aviation Industry Corporation of China (AVIC).
- Vishakha Saxena Additional Editor, Reuters
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