US bans China’s most-valuable internet company; ‘clearly a mistake’ says the Chinese giant – Times of India

Tencent, the Chinese social media and gaming giant, has been labeled as a ‘Chinese military company’ by the Pentagon on Monday, January 6 marking another escalation in the ongoing feud between the United States and China. Other than Tencent Holdings Limited, other Chinese firms, including battery maker CATL, drone manufacturer Autel Robotics, and shipping giant COSCO were also added to the list. As posted in the Federal Register, the newly expanded list now includes 134 companies.

What is Pentagon’s Chinese military company list

The Pentagon’s Chinese military company list is a catalog of companies identified by the US Department of Defense as entities that support or are linked to the Chinese military while also engaging in commercial operations. The list is part of an effort by the US government to address concerns about China’s military-civil fusion strategy, where private companies are allegedly leveraged to advance the country’s military and technological capabilities.
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The Pentagon updates its list of “Chinese military companies” annually, identifying entities it claims combine commercial and military technologies.

What it means for Tencent

Companies on this list face warnings that US businesses working with them could risk losing future Pentagon contracts. The designation of Tencent and other firms highlights the deepening rift between the two superpowers, with economic, technological, and military competition driving the increasingly aggressive policies on both sides.
The listing sent Tencent’s US-listed shares tumbling nearly 10%.
The decision also affects other Chinese giants. CATL, which licenses battery technology to Ford Motor for a $3.5 billion electric vehicle factory in Michigan, was among the newly listed firms.

What Tencent has to say

In its response, Tencent stated that the inclusion was “clearly a mistake,” asserting that the company is “not a military company or supplier” and emphasizing that the designation would have “no impact on our business.”
The company further added that it intends to “work with the Department of Defense to address any misunderstanding.”