US puts Tencent, CATL on list of 'Chinese military companies'

According to AFP news agency, two companies Tencent and CATL have been added by the US to the list of Chinese military companies operating in the US.

Reuters news agency cited a new document released on January 6 saying that this list also includes chip maker Changxin Memory Technologies, drone maker Autel Robotics and Quectel Wireless Company.

Tencent is one of China's leading technology companies, owning the "super app" WeChat and engaging across gaming, content streaming and cloud services.

CATL is also a major player, producing more than a third of the electric car batteries sold worldwide. They have been used in models from a range of foreign manufacturers including Mercedes-Benz, BMW, Volkswagen, Toyota, Honda and Hyundai.

A Tencent spokesperson said the company's inclusion on the list was "clearly wrong" and "we are not a military company or supplier."

“Unlike sanctions or export controls, this list does not impact our business. However, we will work with the US Department of Defense to resolve any misunderstandings,” he said.

The National Defense Authorization Act (NDAA) for fiscal year 2021 requires the US secretary of defense to identify Chinese military companies operating directly or indirectly in the US and submit the list to the US Congress.

The list has no direct legal impact on the companies included, but may affect their reputation.

The move expands the US Department of Defense’s “Chinese military company list” to 134, including 57 entities and their subsidiaries, as part of Washington’s efforts to counter Beijing’s “military-civil fusion” strategy, according to the South China Morning Post.

The US sees China as its main rival. Washington has for years taken measures targeting technology companies over national security concerns and fears that the technology could be used by Beijing for military purposes.