A British company building health sensors for next-generation Apple smartwatches has been hit by the blacklisting of its Chinese business partner over links to the People’s Liberation Army. Rockley Photonics has been forced to call off a sale of its communications division to a Chinese joint venture it runs with cable manufacturer Hengtong after the US Commerce Department added the Chinese company to its “entity list” in December. In December, Hengtong – which is also a major investor in Rockley – was added to the list “for acquiring and attempting to acquire US-origin items in support of military modernisation for…