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US lawmaker calls for probe of UAE tech firm over China ties

GreenWatch Desk World News 2024-01-10, 1:43pm

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A key US lawmaker has called onWashington to mull trade curbs on Emirati artificial intelligence firm Group42 Holdings (G42) over its ties with China, according to a letter releasedTuesday.

Mike Gallagher, the Republican chair of the House Select Committee on theChinese Communist Party, raised concerns over the firm's business links withChinese military companies, state-owned entities and intelligence services.
"G42 maintains active relationships with blacklisted entities includingHuawei and Beijing Genomics Institute," said Gallagher in a letter to theDepartment of Commerce dated last week.
He added that G42 chief executive Peng Xiao runs and is affiliated with "anexpansive network" of Emirati and China-based companies developing dual-usetechnologies and which support human rights abuses.
He urged for Commerce to consider if the company, alongside 13 subsidiariesand affiliates, should be added to a trade blacklist.
Five of the firms were said to have links with Emirati cyberintelligence firmDarkMatter.
Companies added to the so-called Entity List are restricted from obtaining USitems and technologies without government authorization.
US companies that have commercial ties with G42 and its subsidiaries includeMicrosoft, Dell and OpenAI.
"Without restrictions on G42, the hardware and software developed by theseU.S. companies are at significant risk for diversion to G42's PRC-basedaffiliates," Gallagher's letter said, referring to the People's Republic ofChina.
Many of these affiliates, he added, "support the CCP's surveillance state andhuman rights abuses."
The letter marks the latest push by Gallagher and his Select Committee toheighten scrutiny over trade flows involving China and take action againstcompanies with links to Beijing.
Last week, the committee urged for internet device firm Quectel WirelessSolutions -- a Chinese company -- to be blacklisted as a "Chinese militarycompany."
In his latest letter, Gallagher asked for a "detailed explanation" byFebruary 2 if the Commerce Department deemed that G42 or its affiliates didnot need to be put on the trade blacklist, reports BSS.