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Shares in Chinese internet giant Tencent plummeted on Tuesday after the company was added to the Pentagon’s blacklist for alleged ties to the Chinese military, prompting criticism from authorities in Beijing and denials by the company.
Tencent said it is not a Chinese military company or a contributor to military-civil fusion. … (+)
AFP (via Getty Images)
important facts
The Pentagon on Monday updated its list of “Chinese military companies operating in the United States” to include CATL, a major battery supplier to Tencent and Tesla.
The list currently includes 134 companies and discourages American companies from doing business with companies on the blacklist, as it could hinder their chances of winning future Department of Defense contracts. The purpose is
Tencent’s Hong Kong-listed shares fell 7.28% from the previous day to $48.82 (HK$379.60) on Tuesday.
In a regulatory filing, Tencent said it is “not a Chinese military company nor is it a company contributing to the military-civilian integration of China’s defense industrial base” and that its “inclusion on the CMC list is a mistake.” He said he thinks there is.
The company said it would “begin a review process to correct this error” and would work with the Department of Defense to “clear up any misunderstandings” and pursue “legal proceedings if necessary.”
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tangent
Shares of CATL, a major EV battery supplier to multiple automakers including Tesla and Stellantis, also fell nearly 3% on Monday to $34.05 (249.45 yuan) on Tuesday after being added to the list. Ta. The company also said in a statement that it was “not involved in any military-related business or activities” and that this designation was incorrect. “We will work proactively with the Department of Defense to address any erroneous designations, including legal action if necessary,” the statement added.
chief critic
Commenting on the blacklisting at a regular press conference on Tuesday, Chinese Foreign Ministry Spokesperson Guo Jiakun said, “China has overextended the concept of national security, created discriminatory lists under various names, and “We firmly oppose the U.S. practice of going after Chinese companies to contain other companies.” Quality Development…We call on the United States to immediately correct its wrongdoings and end its illegal unilateral sanctions and longstanding jurisdiction over Chinese companies. ”
Main background
The blacklisting comes just weeks before President-elect Donald Trump’s inauguration. During his first term, President Trump targeted Tencent’s flagship service, WeChat, the so-called “super app” or “app for everything,” which has more than 1.38 billion users worldwide. The app, which started as a text messaging service, now includes voice and video calling, payments, video games, online shopping, receiving public broadcasts, and many more features. In 2020, President Trump signed an executive order that effectively banned WeChat in the United States and sought to prevent American companies from using the service. Tencent successfully challenged the ban in court. Sen. Marco Rubio (R-Fla.), President Trump’s nominee for secretary of state, claimed last year that CATL had “deep ties to the Chinese Communist Party and its armed organization, the People’s Party,” and was blacklisted by the Pentagon. requested publication. Liberation Army. ”
