The US is increasing pressure on Tencent by calling it a Chinese military company
- The US government adds Tencent to the list of Chinese military entities
- Tencent and CATL call their addition a “mistake”
- The addition comes just steps away from Trump’s inauguration
The US government has designated Tencent, owner of the popular messaging app WeChat, as a Chinese military company.
The Section 1260H list consists of Chinese companies operating in the US that may have ties to the Chinese military, to warn US companies against trading with these entities.
Both Tencent and CATL, a battery manufacturer, were added to the list by the Ministry of Defense along with several other Chinese organizations.
Tencent says the addition is a “mistake.”
Speaking to the BBC in response to Tencent’s addition to the Entity List, the company stated: “We are not a military company or supplier. Unlike sanctions or export controls, this listing will have no impact on our business.”
The company also said the addition to the list was “clearly a mistake.” CATL also called the addition to the list a mistake.
The Section 1260H list is updated annually and includes Huawei Technologies Company, along with numerous Chinese semiconductor manufacturers.
The list does not ban US companies from trading with the listed companies, but it does increase pressure to have the companies sanctioned by the US Treasury Department.
Liu Pengyu, a spokesperson for the Chinese Embassy in Washington, issued a statement on the updated list, saying: “The US practices violate the market competition principles and international economic and trade rules it has always advocated, and undermine the confidence of foreign companies. when investing and operating in the United States.”
The US and its allies have sought to purge Chinese technology from domestic consumer markets and infrastructure, with the US banning numerous Chinese technology manufacturers, including Huawei, from selling their products in the US over national security fears.
Britain has taken similar steps, including banning new Huawei technologies from its 5G infrastructure, with existing technology to be removed from the network by 2027.
The addition of these companies to the Entity List comes at a time of heightened tensions between the US and China with an ongoing trade war, and newly elected President Donald Trump returning to the White House this month after a campaign full of anti-China rhetoric.