U.S. Targets Chinese Tech Giants in Military Association List
The U.S. Defense Department has added major Chinese firms, including Tencent and CATL, to a list of companies it alleges have ties to China's military. This move, while not imposing immediate bans, warns U.S. businesses of the reputational risks of dealings with such firms and may lead to further sanctions.
The U.S. Defense Department announced on Monday the inclusion of prominent Chinese companies like Tencent Holdings and battery maker CATL on a list of firms purportedly connected with China's military. Additional companies named include Changxin Memory Technologies, Quectel Wireless, Autel Robotics, and COSCO Shipping Holdings, as per a document released on Monday.
Alongside these firms, two entities under China National Offshore Oil Corporation were listed, namely CNOOC China Ltd and CNOOC International Trading. This yearly updated 'Section 1260H list' under U.S. law currently encompasses 134 companies, as indicated in the Federal Register notice.
Although the designation doesn't entail immediate sanctions, it can tarnish company reputations and warns U.S. firms about the risks of collaboration. The inclusion could pressure the U.S. Treasury Department to consider sanctions. Tencent's shares dropped significantly following the announcement, and the company claimed its inclusion was erroneous, asserting it has no military affiliations.
(With inputs from agencies.)
ALSO READ
India-Nepal Forge Stronger Military Ties with Surya Kiran Exercise
Pentagon Targets Chinese Tech Giants over Military Ties
Tesla and CATL: Navigating Tensions Amid U.S. Military Ties
U.S. Defense Department Flags Chinese Tech Giants for Military Ties
U.S. Defense Lists Chinese Giants as Military Ties Widen