AFP on January 7 reported that Tencent and CATL were included in the list of Chinese military companies operating in the US. The decision will be officially announced on January 7 (US time).
Tencent headquarters in Shenzhen, China
Tencent is one of the leading companies in China’s technology sector, operating the “super app” WeChat along with other services such as video games, streaming content and cloud services.
CATL is also a major Chinese company, producing more than a third of the electric vehicle batteries sold in the world. CATL’s batteries are used in vehicle models from many foreign manufacturers including Mercedes-Benz, BMW, Volkswagen, Toyota, Honda and Hyundai.
A Tencent spokesman said the company’s inclusion on the list was “clearly a mistake” and “we are not a military company or supplier”.
“Unlike sanctions or export controls, this list does not impact our business. However, we will work with the Department of Defense to resolve any misunderstandings,” the person said. this spokesman added.
China imposed export restrictions on many US defense companies such as Boeing and Lockheed Martin
The National Defense Authorization Act for Fiscal Year 2021 requires the US Secretary of Defense to identify Chinese military companies operating directly or indirectly in the US and submit a list to Congress. In particular, the list of non-confidential information will be published in the Federal Register.
The list has no direct legal impact on the companies in question, but could affect their reputations and listed companies have sued over being listed.
The Chinese government has not responded to the latest move against Tencent and CATL. Over the years, the US has deployed measures targeting Chinese technology companies for national security reasons and concerns that technology could be used by Beijing for military purposes.
