US Adds Tencent and CATL to List of Alleged Chinese Military Companies

The Pentagon's designation of the firms, disputed as a 'mistake,' raises tensions and impacts global markets.

The US Department of Defense updated its list of 'Chinese military companies,' adding Tencent, CATL, and others for alleged ties to China's military.
Tencent, the world's largest gaming company and operator of WeChat, and CATL, a leading EV battery maker, both deny any military affiliations and plan to contest the designation legally.
The designation does not impose immediate sanctions but prohibits the companies from engaging in US defense procurement and could harm their reputations and partnerships.
Shares of Tencent and CATL dropped significantly following the announcement, with Tencent losing over $35 billion in market value in Hong Kong trading.
The move is part of a broader US effort to counter China's 'military-civil fusion' strategy, further straining US-China economic and technological relations.