Jan. 7 (UPI) — The United States has labeled additional Chinese tech and social media firms as Beijing military companies, including multimedia firm Tencent and battery maker Contemporary Amperex Technology, better known as CATL.
The designations had immediate effects, with both Tencent and CATL suffering market falls: the former dropped more than 7% in Hong Kong trading, and the latter suffered a roughly 5% stock decline.
Both companies have denied the accusations.
“Tencent’s inclusion on this list is clearly a mistake,” the Shenzhen-based firm told China Communist Party mouthpiece Global Times in a statement.
“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.”
CATL similarly described its inclusion as “a mistake” as it “is not engaged in any military-related activities,” CNBC News reported.
The Pentagon published the updated Section 1260H list on Monday, in accordance with the William M. Thornberry National Defense Authorization Act of 2021, which directs the Secretary of Defense to identify and publish a list of Chinese military companies annually until the end of 2030.
The list now identifies 134 companies.
Though the designation is not a ban, it serves as a warning to U.S. companies that may work with the listed firms.
