US Blacklists Chinese Giants: Impact and Protest

The US Defense Department has added notable Chinese firms, including Tencent and SenseTime, to its list of companies linked to military ties, leading to a backlash and potential legal challenges. This move is part of broader efforts to limit technology sharing, citing national security concerns.

The US Defense Department has intensified its measures against Chinese entities, adding prominent companies like Tencent, SenseTime, and CATL to its list of firms allegedly linked to the Chinese military. The move has spurred controversy, with some firms promising legal action or engagement to reverse the decision.

This annual update to the 'Chinese Military Companies' or CMC list now encompasses 134 companies. It aligns with US efforts to restrict technology sharing on grounds of national security, especially concerning semiconductors and artificial intelligence. The National Defense Authorization Act of 2024 prohibits dealings with these entities by 2026.

Reactions were swift from the affected companies. Tencent, whose shares dropped significantly, claims the inclusion is erroneous and is considering legal steps. Battery giant CATL and AI firm SenseTime also dispute their designation, emphasizing their non-involvement with military activities. Meanwhile, Chinese authorities have condemned the US actions, advocating for lifting what they perceive as unjust sanctions.

(With inputs from agencies.)