The US Department of Defense has recently added Chinese tech companies Tencent and CATL to a list of firms that it alleges work with China’s military. Tencent, a social media and gaming giant, and CATL, the world’s largest battery maker, have been included in the Pentagon list, which could potentially impact their reputations and hinder their commercial progress, especially in the United States.
Although inclusion on the list does not immediately result in sanctions, it could have long-term implications for the companies named. Following the announcement, shares in Tencent dropped by 6.5% in Hong Kong, while CATL’s Shenzhen-listed shares experienced a more than 3% decline.
