Stock market data from Hong Kong Stock Exchange

Pentagon Adds Tencent, CATL, and Other Chinese Firms to Military Companies List

Jan 7, 2025, 07:31 AM

The United States Department of Defense has added Chinese technology giant Tencent Holdings, battery maker Contemporary Amperex Technology Co. Limited (CATL), and several other firms to its list of Chinese military companies under Section 1260H. The designation, announced on Monday, includes companies such as Changxin Memory Technologies (CXMT), Quectel Wireless, Autel, and shipping firm COSCO, alleging their ties to Beijing's military. The Pentagon's move signals potential risks for US businesses engaging with these entities and reflects concerns over the fusion of commercial and military technologies in China. Following the announcement, shares of Tencent dropped sharply in Hong Kong trading, falling over 7%. Both Tencent and CATL have denied the allegations, with Tencent stating that its inclusion on the list is "clearly a mistake" and that it is not a military company or supplier. The companies have indicated they may consider legal action to contest the designation.