US includes Tencent and other Chinese companies on list of military ties

Other companies added include Contemporary Amperex Technology Co. (CATL), the world’s largest manufacturer of electric vehicle batteries, and ChangXin Memory Technologies Inc., dedicated to memory technology.

According to the department, China’s “military-civil fusion” strategy has been key to the modernization of the People’s Liberation Army. The new list will be officially published on Tuesday.

Both companies, Tencent and CATL, denied any relationship with the Chinese military, calling their inclusion a “mistake.”

For his part, Chinese Foreign Ministry spokesperson Guo Jiakun declared on Tuesday that his country “firmly opposes” the United States’ practice of “exaggerating the concept of national security.” In addition, he urged Washington to “immediately correct its mistakes and end illegal unilateral sanctions” against Chinese companies.

In compliance with current regulations, the Department of Defense annually updates the list of Chinese companies operating in the United States with alleged military ties.

Although being on this list does not imply immediate sanctions or export controls, it could affect the reputation and commercial relationships of the companies named, within the framework of US efforts to curb China’s technological ambitions for military purposes.