U.S. Defense Adds Tencent and CATL to Military Collaboration List
The U.S. Defense Department added Chinese firms Tencent and CATL to its military collaboration list, sparking tensions with China. The move threatens company reputations and potentially invites sanctions. Affected parties, including Tencent, plan to challenge their inclusion, while China urges the U.S. to lift the sanctions.

The U.S. Defense Department announced the inclusion of Chinese tech giant Tencent Holdings and battery maker CATL on a list of companies allegedly collaborating with China's military, raising tensions between the two nations. This move resulted in significant stock value losses for both Tencent and CATL.
While no immediate bans are imposed, this designation could impact the companies' reputations and add pressure for potential U.S. Treasury sanctions. China's foreign ministry responded, urging the U.S. to lift these 'illegal unilateral sanctions' while the affected companies, including Tencent, plan to contest the decision.
This event forms part of a larger pattern of U.S. actions to curb firms perceived as security risks, affecting bilateral relations. Stakeholders, such as U.S. lawmakers and financial analysts, have voiced opinions on the potential impact, highlighting the interconnected nature of global economies and security concerns.
(With inputs from agencies.)
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