The US Department of Defense has classified Chinese tech giant Tencent and battery maker CATL as companies linked to the Chinese military. That went from the list of in the USA Chinese military companies operating on Tuesday US Register
is published and already for download in advance
was ready. Tencent shares fell more than 7 percent on the Hong Kong Stock Exchange on Tuesday, while CATL shares fell 5.2 percent on the Shenzhen Stock Exchange.
Tencent, based in Shenzhen in southern China, has existed since 1998 and is now one of the country’s leading technology companies. Tencent owns the super app WeChat. CATL, for its part, produces more than a third of the batteries sold worldwide for electric vehicles, which are used in models from Mercedes-Benz, BMW, Volkswagen, Toyota, Honda and Hyundai.
Protest from those affected
Tencent’s inclusion on the US list was “clearly a mistake,” a company spokesman said. Tencent is “not a military company or supplier.” “Unlike sanctions or export controls, this list has no impact on our business,” the spokesperson continued. “However, we will work with the Ministry of Defense to clear up any misunderstandings.”
CATL also spoke of a “mistake”. The company is not involved in military-related activities, CATL said.
Inclusion on the US list does not result in any direct legal consequences or sanctions for the companies, but may have an impact on their reputation. It is considered a benchmark for US companies to work with Chinese companies. Companies listed there have already taken legal action against the classification in the past.