The U.S. Department of Defense has removed AMEC from the CMC list

On December 17 local time, the U.S. Department of Defense announced that it had removed Advanced Micro-Fabrication Equipment Inc. (Shanghai) and IDG Capital from the Chinese Military Companies List (CMC List or Section 1260H List) on December 13.

Under Section 1260H of the National Defense Authorization Act for Fiscal Year 2021, the U.S. Department of Defense updates and publishes the Section 1260H List annually. Previously, AMEC and IDG Capital were included on this list due to alleged ties with the Chinese military, leading to reputational damage and potential business restrictions for both companies in the international market. The reversal of this decision means that the U.S. Department of Defense no longer formally recognizes direct links between the two companies and the Chinese military, reducing the negative impact of relevant policy restrictions on their international business operations.

Image source: U.S. Department of Defense

It is understood that on January 31, 2024 (Eastern Time), the U.S. Department of Defense listed AMEC on the CMC list under Section 1260H of the National Defense Authorization Act for Fiscal Year 2021.

On August 16, 2024, AMEC announced that it had formally filed a lawsuit with a U.S. court, challenging the U.S. Department of Defense’s decision to list it on the CMC list.

Dr. Yin Zhiyao, Chairman and General Manager of AMEC, stated at the time: “We are deeply shocked by the U.S. Department of Defense’s decision to once again list AMEC on the military-related list. This decision is wrong and baseless. We believe the court will make a fair ruling to remove AMEC from the CMC list. Meanwhile, we remain willing to continue communicating with the U.S. Department of Defense to properly resolve the existing disputes.”