US lawmakers urge Pentagon to expand the list of China military-linked firms to include Xiaomi, DeepSeek

Nine US Republican lawmakers urged the Pentagon to add more than a dozen Chinese technology firms, including Xiaomi and DeepSeek, to ‌a list of companies allegedly aiding the Chinese military in a letter addressed to Defense Secretary Pete Hegseth.

The letter urges Hegseth to add several Chinese companies, including AI firm DeepSeek, consumer electronics maker Xiaomi, and a global leader in semiconductor displays BOE Technology Group, to the so-called “Section 1260H list”. It is a provision in the US FY 2021 National Defense Authorization Act (NDAA) that requires the Department of Defense to annually publish a list (the 1260H List) of "Chinese military companies" operating in the US or its territories.

Several major Chinese firms are already included, such as a Chinese multinational tech giant known for its social media (WeChat, QQ), Tencent Holdings, and CATL, the world's largest manufacturer of lithium-ion batteries, primarily for electric vehicles (EVs).

According to Reuters, there is no formal sanctioning associated with being included in the list. However, “it sends a message” to US government agencies about the country’s military's opinion of the firms and leads to increased scrutiny.

In the past, companies have sued the US government for being added to the list.

For example, Hesai Group (Hesai Technology), which is a major global tech company specializing in 3D LiDAR (Light Detection and Ranging) solutions, filed a lawsuit against the US government in May 2025 for its inclusion. However, the court ruled against the company, determining that there is substantial evidence that Hesai contributes "to the Chinese defense industrial base".

Several earlier reports have pointed towards DeepSeek’s ties with China's military – such as the one from Reuters quoting a senior US official claiming that DeepSeek is aiding China's military and intelligence operations. It was also reported that China uses DeepSeek AI to power its next-generation weapons.

A State Department spokesperson commented at the time that "DeepSeek has willingly provided, and will likely continue to provide, support to China's military and intelligence operations."

In January, Xiaomi, Shein, and several other Chinese tech companies were also accused of sending EU users’ personal data to China.