Tencent, CATL added to Pentagon blacklist

Investing.com -- The U.S. Department of Defense has added Chinese tech giants Tencent and CATL to its blacklist, alleging ties to China's military. 

The move, which has stirred tensions between the world’s two largest economies, aims to counter what Washington views as Beijing's military-civil fusion strategy.

Tencent, known for its messaging app WeChat, and CATL, the world’s largest battery maker, have both reportedly denied any military connections, labeling their inclusion as a mistake. 

Tencent's spokesperson is said to have emphasized that the designation would not impact its business operations, while CATL echoed similar sentiments.

The Pentagon's list, updated annually under Section 1260H, now includes 134 firms. 

This designation does not immediately trigger sanctions but serves as a warning to American entities about potential risks in doing business with these companies. 

It also places pressure on the U.S. Treasury to consider sanctions.

Shares of Tencent dropped by 7% in Hong Kong. CATL's shares fell around 3%.

The announcement comes amid strained U.S.-China relations, particularly as both nations navigate technology and security disputes.

 

Source: Investing.com