The Department of Defense updates its list of Chinese military companies, causing backlash from Beijing and the firms involved.
**US Labels Tencent and CATL as Military Affiliates**
**US Labels Tencent and CATL as Military Affiliates**
US government flags Tencent and CATL for alleged military ties, sparking tensions with China.
In a significant move, the United States has added several prominent Chinese technology companies, notably Tencent and battery manufacturer CATL, to a list indicating their supposed collaboration with the Chinese military. This list acts as a cautionary measure for American companies and organizations considering partnerships with these Chinese entities. While the inclusion does not automatically trigger bans, it may intensify calls for the US Treasury Department to impose sanctions on these firms.
In response to their categorization, both Tencent, the parent company of the popular messaging platform WeChat, and CATL have refuted claims of any military involvement, arguing that their designation is an error. The Chinese government has also criticized the United States for what it views as an unreasonable restriction on Chinese businesses.
The Pentagon’s list, formally recognized as the Section 1260H list, is revised annually and now encompasses a total of 134 companies. This effort is part of a broader strategy by Washington to counter what it perceives as Beijing's bid to bolster its military capability through technological partnerships with Chinese corporations, educational institutions, and research initiatives.
Tencent articulated that its classification as a military entity was erroneous, asserting, "We are not a military company or supplier," and noted that the list lacks influence on its operational activities. Similarly, CATL emphasized its non-involvement in military affairs, criticizing the US practices for infringing on principles of fair competition and international trade norms. Liu Pengyu, a representative from the Chinese Embassy in Washington, highlighted this sentiment, noting that the moves would likely deter foreign investment in the US market.
These developments come amid increasing scrutiny of Chinese firms, reflecting pressure from US lawmakers to include companies like CATL on the military-affiliated list. This pressure intensified as American automotive giant Ford announced plans to allocate $2 billion for establishing a battery plant in Michigan, with intentions to license technology from CATL, further complicating bilateral relations.
As tensions escalate between the US and China, this latest announcement may have broader implications for international trade and cooperation in technology. Moreover, President-elect Donald Trump's anticipated return to the White House adds an additional layer of uncertainty regarding future US-China relations, especially given his previously stringent policies toward Beijing.
Last year, the Pentagon faced lawsuits from drone manufacturer DJI and Lidar technology firm Hesai Technologies concerning their classification on the same military-affiliated list, underscoring the contentious nature of this designation. Both companies continue to be featured on the latest update, reflecting ongoing tensions in a rapidly evolving geopolitical landscape.
In response to their categorization, both Tencent, the parent company of the popular messaging platform WeChat, and CATL have refuted claims of any military involvement, arguing that their designation is an error. The Chinese government has also criticized the United States for what it views as an unreasonable restriction on Chinese businesses.
The Pentagon’s list, formally recognized as the Section 1260H list, is revised annually and now encompasses a total of 134 companies. This effort is part of a broader strategy by Washington to counter what it perceives as Beijing's bid to bolster its military capability through technological partnerships with Chinese corporations, educational institutions, and research initiatives.
Tencent articulated that its classification as a military entity was erroneous, asserting, "We are not a military company or supplier," and noted that the list lacks influence on its operational activities. Similarly, CATL emphasized its non-involvement in military affairs, criticizing the US practices for infringing on principles of fair competition and international trade norms. Liu Pengyu, a representative from the Chinese Embassy in Washington, highlighted this sentiment, noting that the moves would likely deter foreign investment in the US market.
These developments come amid increasing scrutiny of Chinese firms, reflecting pressure from US lawmakers to include companies like CATL on the military-affiliated list. This pressure intensified as American automotive giant Ford announced plans to allocate $2 billion for establishing a battery plant in Michigan, with intentions to license technology from CATL, further complicating bilateral relations.
As tensions escalate between the US and China, this latest announcement may have broader implications for international trade and cooperation in technology. Moreover, President-elect Donald Trump's anticipated return to the White House adds an additional layer of uncertainty regarding future US-China relations, especially given his previously stringent policies toward Beijing.
Last year, the Pentagon faced lawsuits from drone manufacturer DJI and Lidar technology firm Hesai Technologies concerning their classification on the same military-affiliated list, underscoring the contentious nature of this designation. Both companies continue to be featured on the latest update, reflecting ongoing tensions in a rapidly evolving geopolitical landscape.
