The US will add additional Chinese tech and healthcare businesses to investment and export blacklists, including top drone maker DJI and AI giant Megvii Technology Ltd., for alleged involvement in surveillance of the country's Uyghur minorities.

On Thursday, the Treasury Department will add eight names to its list of sanctioned Chinese military-industrial complex corporations, including supercomputing giant Dawning Information Industry Co. or Sugon and Yitu Technology. Investors from the US are banned from investing in companies that have that label. The names of the companies were already on a separate blacklist that barred them from accessing American technology.

The Commerce Department also intends to impose sanctions on the export of American technology to more than two dozen other Chinese companies, including several in the field of biotechnology. Wuxi Biologics Cayman Inc. fell as much as 24% in Hong Kong on Wednesday, the most it has ever dropped.

U.S. warns companies about the risks of doing business in Hong Kong as China clamps down on rights

"It's a very painful drop, and we won't be able to do anything until we have more information.  This is highly confusing because there are no names or specifics on what sanctions will be imposed, especially given the large number of orders that have already been signed in advance; what will happen to them?" Lin Cun, a health-care fund manager at Shenzhen Senrui Investment Co., said. "For the time being, all we can do is watch the losses."

The steps come just days after the US sanctioned SenseTime Group Inc. for allegedly oppressing Uyghur Muslims in China's Xinjiang autonomous region, causing the AI leader to postpone its Hong Kong IPO. It has the potential to escalate tensions between Washington and Beijing, who are at odds over everything from technological supremacy to human rights.

The Biden administration is also said to be considering tougher sanctions against Semiconductor Manufacturing International Corp., China's largest chipmaker.