U.S. Adds CATL, Tencent, etc. to 'Chinese Army Support Companies'...medium and response notice

The U.S. Department of Defense judged a total of 134 companies, including world's No. 1 battery producer CATL and game company Tencent, as Chinese military-backed companies and released the list in its official gazette on the 6th.

The U.S. government has created and managed such a list of companies, believing that Chinese companies are using cutting-edge technology and expertise to support the modernization of the Chinese military in accordance with the Chinese government's civilian-military convergence strategy.

While designation as a Chinese military company does not immediately impose sanctions or export controls, the National Defense Authorization Act for fiscal year 2024 banned the ministry from doing business with such companies from June 30, 2026.

Reuters said being put on the list could hurt the reputation of the companies involved and would be a warning to U.S. groups and companies doing business with designated Chinese companies about the risks.

In response, CATL and Tencent protested that they were not "military enterprises" and said they would correct them through lawsuits if necessary.

"China has consistently and firmly opposed the U.S. generalization of the concept of national security and oppression of Chinese companies by creating a discriminatory list of various nominal names," Chinese Foreign Ministry spokesman Guo Jacun said in a briefing, urging the U.S. to immediately correct its wrongdoings.

"China will take the necessary steps to firmly protect the legitimate rights and interests of Chinese companies and their right to develop," it added.