The US Defense Department has classified Chinese technology conglomerate Tencent, which is primarily active in the fields of social media and computer games, as a Chinese military company operating in the US. The WeChat operator’s share price fell in US trading on Monday. American news agency Bloomberg has given this news.
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Tencent is one of several Chinese companies designated as “Chinese military companies” in the US Federal Register under the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (NDAA 2021). The US federal law, which sets the budget, spending, and policies of the US Department of Defense for fiscal year 2021, requires the US Secretary of Defense to prepare and publish a list of “Chinese military companies” annually by December 31, 2030. Needed. Publication of this document (PDF, in the federal register Scheduled for Tuesday, January 7, 2025.
Chinese battery makers CATL (Contemporary Amperex Technology Co., Ltd.), China Telecom and tech conglomerate Huawei are also on the list. It also includes: Chinese aerospace companies, shipbuilders, video surveillance equipment manufacturers and mobile phone operators. The Pentagon’s blacklist does not contain any specific restrictions; Its purpose is to prevent US companies from doing business with listed companies.
Inclusion in the list “obviously a mistake”
According to Bloomberg report In a statement, Tencent called its presence on the list an “obvious mistake.” “We are not a military company or supplier,” a company spokesperson said. “Unlike sanctions or export controls, this list has no impact on our business. However, we will work with the U.S. Department of Defense to resolve any misunderstandings.” Battery company CATL also said a “mistake”. The company says it is not involved in military activities.
The list of Chinese companies that work closely with the government in Beijing, its military or the domestic defense industry and are therefore under surveillance goes back to an order signed by then-US President Donald Trump in 2020. According to this, American investment in these Chinese companies has been excluded. The order was and is part of the escalating trade war between the United States and China. So US chip maker Intel was no longer allowed to supply processors to listed Chinese server maker Inspur. Inspur remains in the blacklist. In turn, the tech company Huawei has been on the US government blacklist since May 2019. US President Joe Biden extended his predecessor Trump’s decree into 2021.
However, Bloomberg writes, some Chinese companies have been successful in being removed from the US blacklist. In 2021, Chinese smartphone maker Xiaomi reached a settlement with the US government and classification as a Chinese military company was removed. Last year, Chinese chip maker AMEC (Advanced Micro-Fabrication Equipment) was removed from the list. The U.S. Department of Defense notes in a Federal Register entry that blacklisted companies “may request a review of this decision.” According to the Pentagon, six Chinese companies have been removed compared to the list last published on January 31, 2024.
(AKN)
