AMEC and IDG Capital eliminated from Pentagon's Chinese military companies list; shares surge

Investing.com -- Advanced Micro-Fabrication Equipment (AMEC), a top chip equipment manufacturer in China, saw its shares rise by 4.35% on Wednesday after the Pentagon removed it from a list of Chinese companies allegedly collaborating with Beijing's military.

AMEC was included in Washington's "Entities Identified as Chinese Military Companies Operating in the United States" list in February. This led the company to launch a federal lawsuit against the U.S. Defense Department in August.

AMEC, which requested a court order to erase the designation, stated that it has never participated in military activities and rigorously adheres to all laws and regulations.

The U.S. Defense Department updated the list to exclude AMEC, along with IDG Capital, one of China's most significant venture capital and private equity firms. The list, which includes dozens of companies, was updated on Tuesday and planned for release on Wednesday.

The list comprises entities that the U.S. has targeted with trade sanctions in recent years. This includes Huawei Technologies and the state-owned aerospace and defense manufacturing conglomerate Aviation Industry Corporation of China (AVIC).

IDG Capital, which was also included in the list in February, did not file a lawsuit. However, it has previously stated that it has no connection with the Chinese military and should not be on the list.

Although being on the list does not result in immediate prohibitions, it can tarnish the reputation of the designated companies. It also serves as a warning to U.S. entities and businesses about the potential risks of dealing with these companies.

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Source: Investing.com