The Defense Department has added over a dozen Chinese enterprises to its list of organizations suspected of collaborating with Beijing’s military.

The “Section 1260H” list, which includes Hesai Technology, YMTC, Megvii, and NetPosa, poses a serious threat to the companies’ reputation and may increase pressure on the Treasury Department to impose sanctions.

The list is expected to be released publicly this afternoon.

The revised list is expected to be released to the public.

China’s commitment to its military-civil fusion strategy is emphasized by the updated list.