News/Tencent Targeted by U.S. Department of Defense
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| content | Text | | The U.S. Department of Defense has added [[Companies/Tencent|Tencent]], the social media and gaming giant, and CATL, the world’s largest battery manufacturer, to its list of firms it alleges are linked to China’s military.
While inclusion on the Pentagon’s list does not trigger immediate sanctions, it could damage the reputations of the named companies and hinder their commercial prospects, particularly in the U.S. market. The announcement caused shares of Tencent, which owns the Chinese super-app WeChat, to drop 6.5% in Hong Kong on Tuesday, while CATL’s shares in Shenzhen fell by over 3%.
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Tencent and CATL join dozens of other Chinese companies on the so-called 1260H list, which is updated annually and identifies firms that the Defense Department claims operate directly or indirectly within the United States. According to a notice in the Federal Register on Monday, the Pentagon views the list as part of an ongoing effort to address China’s “military-civil fusion” strategy—a program designed to integrate civilian research and commercial sectors with the armed forces to create a technologically advanced military.
In response, Tencent disputed its inclusion on the list, calling it “a mistake.” '''“We are not a military company or supplier. Unlike sanctions or export controls, this listing has no impact on our business. We will nonetheless work with the Department of Defense to address any misunderstanding.”''' |
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