Chinese wireless firm Quectel sues US over military designation
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FILE PHOTO: The Pentagon building is seen in Arlington, Virginia, U.S. October 9, 2020. REUTERS/Carlos Barria/File Photo
By David Shepardson
WASHINGTON, May 11 (Reuters) - Chinese wireless device manufacturer Quectel Wireless Solutions sued the Pentagon on Monday over its inclusion in a U.S. list of companies allegedly aiding Beijing's military.
The Pentagon added Quectel in January to a list of companies it says work with China's military. However, Quectel strongly denied the allegation and said it was causing it serious economic harm.
"Quectel has not - and does not - support the Chinese military or the Chinese defense industrial base in any way," the lawsuit said. "It designs and manufactures purely civilian technology that is used by people and enterprises around the world."
The company says in its lawsuit filed in U.S. District Court in Washington that it manufactures equipment like cellular modules and antennas used in car infotainment systems and other "smart" connected electronic devices.
The Pentagon did not immediately respond to a request for comment.
Placement on the Pentagon list can prevent a company from accessing certain U.S. contracts, grants and other programs.
The Trump administration has been widening a tech crackdown on China and is considering barring some Chinese equipment that is currently allowed for sale.
In March, Quectel lawyers sent the Pentagon a letter disclosing one of its key U.S.-based suppliers had expressed concerns about the Pentagon designation and made the decision to terminate its relationship. It said the disruption "would not only lead to significant lost revenue for Quectel, but that the impact would be felt by many downstream suppliers and manufacturers in the American automobile industry."
A number of Chinese companies have filed suit seeking to be removed from the list. China's top flash memory chipmaker Yangtze Memory Technologies sued in December over its inclusion on the Pentagon list.
In September, U.S. District Judge Paul Friedman rejected a bid by China-based DJI, the world's largest drone maker, to be removed from the U.S. Defense Department list.
Friedman in July ruled for the government in a dispute involving China-based lidar manufacturer Hesai Group, which also sued over the U.S. decision to add it to the Pentagon list.
(Reporting by David Shepardson; Editing by Mark Porter and Bill Berkrot)
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