Chinese companies that are either under U.S. government sanctions or listed as national security concerns are using corporate rebranding and restructuring to circumvent restrictions. Through mergers or the establishment of U.S.-based subsidiaries, Chinese firms are hoping to avoid increasing restrictions placed on them by the American government — especially in light of former President Donald J. Trump‘s potential return to the White House.
In Michigan, the company American Lidar ostensibly appears to its clients as an American-based and American-owned business. However, American Lidar is actually a subsidiary of the Hesai Group, a company listed by the U.S. government as a national security concern. The Hesai Group has been accused of engaging in corporate espionage. This is especially concerning since American Lidar is located just miles from some of the U.S.’s largest auto manufacturers.
TIKTOK, GENETICS, & DRONES.
The most notable example of a Chinese government-aligned corporation attempting to rebrand and ‘re-domicile’ itself is TikTok. For the better part of five years, TikTok has attempted — at least to the public — to distance itself from its Chinese parent company, ByteDance. In other instances, Chinese companies have rushed to secure supply and sales agreements with American companies, allowing them to export their technology to the U.S. ahead of any potential bans.
In the case of Massachusetts-based BGI Americas — a subsidiary of BGI Genomics under China‘s BGI Group — the U.S. genetics subsidiary rebranded itself with a less recognizable name, Innomics. Despite the change, lawmakers on Capitol Hill have pushed the Pentagon to list Innomics as a Chinese military entity.
Legislation targeting the Chinese drone manufacturer DJI Group has prompted the company to secure several licensing agreements with U.S. firms before they’re banned from the country. Anzu Robotics, a new drone start-up founded by American citizen Randall Warnas, will build its own versions of DJI drones. Former Obama government Attorney General Loretta Lynch has spearheaded a lobbying effort by DJI Group to avoid a U.S. ban.