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Chinese tech giants Tencent, CATL and others protest US listings as army-linked companies

Jan 07, 2025 - financialpost.com
The U.S. Defense Department has added several Chinese companies, including Tencent, SenseTime, and CATL, to its list of entities with alleged ties to China's military. This move has prompted protests from the companies, which claim the designation is a mistake and plan to seek its reversal. Tencent, the world's largest video gaming company, and CATL, a leading battery maker, both argue that they have no military affiliations and intend to engage with the Department of Defense to correct the situation. Tencent's shares fell 7.3% in Hong Kong, while CATL's stock dropped 2.84% in Shenzhen following the announcement.

The inclusion in the "Chinese Military Companies" list, updated annually by the Defense Department, restricts U.S. defense procurement from these companies but does not directly impact their business operations. SenseTime, an AI company, also disputes its inclusion, stating it has no factual basis and no material impact on its global operations. The Chinese Ministry of Foreign Affairs has urged the U.S. to lift what it calls illegal sanctions, accusing the U.S. of unjustly suppressing Chinese companies.

Key takeaways:

  • The U.S. Defense Department has added Chinese companies Tencent, SenseTime, and CATL to a list of firms with alleged military ties, prompting protests from these companies.
  • Tencent and CATL claim their inclusion on the list is a mistake and plan to engage with the U.S. Defense Department to reverse the decision.
  • SenseTime disagrees with its inclusion on the list, stating it has no factual basis and no material impact on its global operations.
  • China's Ministry of Foreign Affairs has urged the U.S. to lift what it calls illegal sanctions and discriminatory practices against Chinese companies.
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