The U.S. Department of Defense has added dozens of Chinese companies, including tech and gaming giant Tencent, AI firm SenseTime, and the world’s largest battery manufacturer CATL, to a list of entities allegedly tied to China’s military. The move has sparked protests from the companies, with some vowing to challenge the decision legally, while Beijing has voiced strong disapproval.
Background and Recent Developments
The updated list, which now includes 134 companies, is part of Washington’s broader effort to curb access to advanced technologies, such as semiconductors and artificial intelligence, citing national security concerns.
The announcement caused a sharp drop in stock prices. Tencent’s shares in Hong Kong fell by 7.3%, while CATL’s shares in Shenzhen dropped by 2.84%.
Company Responses
- Tencent: Known globally for video games and operating China’s WeChat platform, Tencent declared the decision a “mistake.” The company plans to engage with the U.S. Department of Defense to rectify the situation and may pursue legal action if necessary.
- CATL: The battery manufacturer stated that it has never engaged in military-related activities and deemed its inclusion on the list erroneous. The company intends to protect its interests through dialogue and legal measures if required.
- SenseTime: The AI firm called the decision “factually baseless” and expressed strong disagreement, emphasizing no significant impact on its global operations.
China’s Reaction
Chinese Foreign Ministry spokesperson Guo Jiakun condemned the U.S. move during a press briefing, labeling the sanctions as “unlawful and unilateral.” He urged the U.S. to immediately revoke the restrictions, accusing it of stifling China’s high-quality development under the guise of national security.
Implications
The escalating restrictions reflect growing tensions between the U.S. and China over technological dominance and security concerns. The latest measures could further strain economic relations and impact global supply chains.
