Senator Aims to Block Legal Challenges to DOD Chinese Military Company Listings
Sen. Rick Scott, R-Fla., introduced a bill May 22 that would make the Defense Department’s Section 1260H List of Chinese military companies exempt from judicial review.
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Scott said current law allows Chinese companies to challenge 1260H designations in U.S. courts to delay the listings and remain in U.S. supply chains. His No Safe Harbor for the Enemy Act would close this “dangerous loophole” and “ensure decisions made to protect our national security are not second-guessed by the court system,” he said.
The bill was referred to the Senate Armed Services Committee, where Scott is a member. The chairman and ranking member of the committee didn't immediately respond to requests for comment on the legislation. DOD declined to comment.
Chinese firms that have recently challenged their 1260H listings in court include drone maker DJI, lidar company Hesai Technology and semiconductor equipment maker Advanced Micro-Fabrication Equipment (AMEC). All three companies filed federal lawsuits last year (see 2410210038, 2412110023) and 2408160028).
The list was created by the FY 2021 National Defense Authorization Act (NDAA) to highlight companies that operate in the U.S. and contribute to China's military-civil fusion strategy. Starting next year, Section 805 of the FY 2024 NDAA will restrict DOD's dealings with companies on the list.