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Friday, October 4, 2024

Moolenaar urges Pentagon to blacklist Chinese LCD & OLED firms over security concerns

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Congressman John Moolenaar Chairman of the Select Committee on the CCP | Official U.S. House headshot

Congressman John Moolenaar Chairman of the Select Committee on the CCP | Official U.S. House headshot

Chairman John Moolenaar of the House Select Committee on the Chinese Communist Party has urged Defense Secretary Lloyd Austin to blacklist two Chinese companies, BOE Technology Group and Tianma Microelectronics Co., citing concerns over U.S. economic and national security. In his letter, Moolenaar pointed out that these companies, which produce LCD (liquid crystal display) and OLED (organic light-emitting diode) technologies, have gained a significant share of the global market through state subsidies.

Moolenaar emphasized the importance of these technologies in weapon systems and highlighted the risk posed by BOE and Tianma's dominance in the industry. He stated that these firms have deep connections to the People’s Liberation Army (PLA) through their parent companies and involvement in military-fusion zones in China.

In his communication, Moolenaar wrote: "The PRC engages in aggressive state-sponsored subsidization of the two primary display technologies: liquid crystal display (LCD) and organic light-emitting diode (OLED) display. By doing so, it drives non-PRC companies from the market and bolsters PRC dominance of the industry. In LCD, the industry’s legacy technology, the PRC’s share of global production capacity has grown from 0% in 2004 to 72% today, and non-PRC manufacturers are rapidly exiting the market due to their inability to compete… A similar evolution is now underway in OLED, the current generation of display technology; the PRC’s share of global production capacity has grown from 1% in 2014 to 51% today."

He further noted: "Most alarmingly, both companies are tied to the People’s Liberation Army (PLA) and support its efforts. Tianma is identified by the U.S. Department of State as a subsidiary of the Aviation Industry Corporation of China (AVIC)… BOE was initially founded in 1993 as a military and defense supplier, and it is integrated as at least a subprime contractor for the PLA; many of its customers are known PLA suppliers, such as HiSense."

Due to these connections with China's military apparatus, Moolenaar has requested that both BOE Technology Group and Tianma Microelectronics Co. be placed on the DoD 1260h blacklist as Chinese military companies.

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