U.S. Defense Lists Chinese Giants as Military Ties Widen

The U.S. Defense Department added several Chinese tech giants like Tencent and CATL to a list linking them to China's military. This move is a warning to U.S. businesses about potential security risks, though no immediate bans are imposed. Chinese firms dispute the designations.

The U.S. Department of Defense has named key Chinese firms, including Tencent and CATL, as collaborators with China's military, according to a report released on Monday. These names join the 'Section 1260H list,' affecting 134 companies overall.

While this designation isn't an automatic ban, it serves as a substantial caution to American companies about the risks of engaging with these firms. The listing has already impacted the stock prices of these companies. Tencent's shares fell substantially, while both U.S. and Chinese-listed stocks saw pressure.

The inclusion of these companies aims to safeguard sensitive technologies, highlighting growing tensions between the U.S. and China. The list, updated annually, underscores a broader U.S. strategy to secure key technologies against Beijing's ambitions.

(With inputs from agencies.)