U.S. Defense Department's New Chinese Company List: Implications and Reactions

The U.S. Defense Department added several Chinese tech firms, including Tencent and CATL, to a list of companies allegedly linked to China's military, affecting their stock values and igniting U.S.-China tensions. Some firms, like Tencent, argue their inclusion is incorrect and harms their reputation.

The U.S. Defense Department has expanded its list of companies with alleged military ties to China, adding notable tech giants like Tencent Holdings and CATL. The decision affects major firms in various sectors, prompting criticism and affecting stock market performances.

Among the new additions are gaming leader Tencent, battery producer CATL, and chip maker Changxin Memory Technologies. While Tencent argued that its inclusion was a mistake, its Hong Kong and U.S. stock prices took a hit, reflecting investor concerns.

This move is Washington's latest in a series of efforts to curb Chinese influence and perceived security risks. The redefined list also pressures the Treasury Department to consider further sanctions, impacting U.S.-China economic relations significantly.

(With inputs from agencies.)