US adds Tencent and CATL to List of Chinese Companies Linked to Military, Escalating Tensions with Beijing

The US Department of Defense has added several prominent Chinese technology firms, including gaming giant Tencent and battery manufacturer CATL, to its list of companies it says are linked to China’s military. The move serves as a warning to American businesses about the risks of engaging with these companies, potentially increasing pressure on the US Treasury Department to impose sanctions.

The so-called Section 1260H list, updated annually, now includes 134 companies, and is part of Washington’s broader strategy to curb Beijing’s military power, which it argues is bolstered by technology from Chinese firms. However, both Tencent and CATL have vehemently denied any military involvement. Tencent, the owner of the popular messaging app WeChat, called the listing a “mistake,” stating it was not a military company and that the designation would have no immediate impact on its business. Similarly, CATL rejected the accusation, asserting it is not involved in any military activities.

The Chinese government condemned the US decision, with spokesperson Liu Pengyu accusing Washington of “unreasonable suppression” of Chinese companies, violating international trade principles. The inclusion of these firms on the list follows growing pressure from US lawmakers, particularly after Ford announced a $2 billion investment to build a battery plant in Michigan, planning to license technology from CATL.

This development comes at a time of heightened tensions between the US and China, as President-elect Donald Trump is set to return to the White House, signaling a continued hardline stance on Beijing. Meanwhile, companies such as drone maker DJI and Lidar-maker Hesai Technologies remain on the list despite legal challenges last year. The latest move underscores the ongoing friction between the world’s two largest economies.