Agencies
The U.S. Defense Department said Monday it has added Chinese tech giants, including gaming and social media conglomerate Tencent Holdings and battery maker CATL, to a list of firms it says work with China’s military, further expanding its list of such entities.
The list also included chip maker Changxin Memory Technologies, Quectel Wireless, drone maker Autel Robotics and China’s largest shipping company COSCO Shipping Holdings, according to a document published on Monday.
Two entities owned by Chinese state-owned oil major China National Offshore Oil Corporation (CNOOC) were also listed, CNOOC China Ltd. and CNOOC International Trading.
The annually updated list of Chinese military companies, formally mandated under U.S. law as the “Section 1260H list,” designated 134 companies, according to a notice posted to the Federal Register.
While the designation does not involve immediate bans, it can be a blow to the reputations of affected companies and represents a stark warning to U.S. entities and firms about the risks of conducting business with them.
It could also add pressure on the U.S. Treasury Department to sanction the companies.
The Hong Kong-listed shares of Tencent fell as much as 7% in early trade, while the U.S.-traded shares of the company, which is also the parent of Chinese instant messaging app WeChat, fell 8% in over-the-counter trading.
Tencent said in a statement that its inclusion on the list was “clearly a mistake.” It added: “We are not a military company or supplier. Unlike sanctions or export controls, this listing has no impact on our business.” CATL’s vehicle battery maker whose Shenzhen-listed shares dropped more than 5%
