The US Department of Defense has added dozens of Chinese companies, including games and technology company Tencent, artificial intelligence company SenseTime and the world's largest battery maker CATL, to a list of companies they say are linked to the Chinese military.
In recent years, Washington has tried to limit the sharing of advanced technology, including semiconductors and AI, seeing it as a threat to national security.
The US Department of Defense updates the list of “Chinese Military Companies,” or the CMC list, every year. With the most recent review, it includes 134 companies. The National Defense Authorization Act of 2024 prohibits the Department of Defense from dealing with the named companies beginning in June 2026.
Tencent shares in Hong Kong fell 7.3% on Tuesday and the company said it would “initiate a reconsideration process to correct this error,” seeking discussions with the US Department of Defense and, if necessary, legal action. to remove it from the list.Tencent is the world's largest video game company and operates the Chinese messaging platform WeChat.
Companies will try to reverse a decision
“As the company is not a Chinese military company or contributing a military-civilian combination to China's defense industrial base, they believe it is a mistake to be included on the CMC List,” Tencent said in a statement to the Hong Kong Stock Exchange.
“Unlike other lists maintained by the US Government for sanctions or export control measures, inclusion on the CMC List applies only to US defense provisions, which do not affect the Group's business,” he said.
Battery maker CATL said in a statement posted on its website that the company “has never engaged in any business or military activity,” and said the designation adversely affects their work.
Like Tencent, CATL maintains that being on the list was a “mistake” and would proactively engage with the Pentagon to “address the false designation.” and take legal action if necessary to protect the interest of the company and its stakeholders.CATL stock fell by 2.84% in Shenzhen.
AI company SenseTime said in a statement that the decision to list it had “no factual basis.”
“We strongly agree with it,” SenseTime's statement said, adding that the decision “has no material impact on our global operations.”
“SenseTime remains committed to working with the relevant stakeholders to address this matter, and to protect the interests of the company and our shareholders,” the company said.
At a daily press briefing, Chinese Foreign Ministry spokesman Guo Jiakun urged the US to “immediately correct its wrong practices, and the illegal unilateral sanctions and long-arm jurisdiction over Chinese companies that construction.”
“China has consistently and steadfastly opposed the US's usurping of the concept of national security, creating discriminatory lists under various pretexts, and expelling Chinese companies without reason, hampering China's high-quality development,” Guo said.
