The Pentagon's expanding list of Chinese companies designated as 'military companies' is increasing reputational risks and the possibility of future investment restrictions for major Chinese tech firms, according to legal experts.

The Pentagon’s expanding blacklist of Chinese companies is increasing reputational risks for some of the country’s biggest technology firms and raising the prospect of future restrictions on access to US investment, according to legal experts. In a Federal Register notice scheduled for publication on Wednesday, the US Department of Defence designated a broad group of Chinese companies as “Chinese military companies” under Section 1260H of the National Defence Authorisation Act. The latest...