DJI Investment Blacklist Megvii

DJI and other 7 Chinese companies are added to the US investment ban

Rebbeca Ren

posted on December 17, 2021 9:28 am

The US Treasury Department put drone maker DJI and 7 other Chinese companies on an investment blacklist on Thursday, prohibiting Americans from investing in the companies, CNN reported.

The other seven companies are facial recognition startup Megvii, cloud-computing services provider Dawning Information Industry, facial-recognition provider CloudWalk Technology, cybersecurity group Xiamen Meiya Pico, AI developer Yitu Technology, cloud-computing provider Leon Technology, and cloud-based surveillance system maker NetPosa Technologies.

The 8 Chinese companies are already on the US entity list, which means they are not allowed to purchase US products or import American technology without a special license.

The investment blacklist forbids the purchase or holding of any securities, including derivatives of them, after a 60-day period to allow existing holders to sell out of any holdings. It also prohibits the targeted companies from having any direct or indirect ownership position in US businesses.

Washington's latest clampdown could create financing headaches for the upstart drone maker, as it counts American venture firm capital, Kleiner Perkins, as investors.

Sequoia Capital China also participated in its financing, but it operates as a separate legal entity from the Silicon Valley-based Sequoia Capital.

In recent weeks, the Biden administration has broadened its efforts to limit Chinese technology companies’ access to US investment, advanced machinery and other leading-edge technology.

After being placed on the investment blacklist last week, Chinese AI unicorn SenseTime postponed its plans for an initial public offering of shares in Hong Kong.