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U.S. Adds Tencent and CATL to List of Chinese Firms Allegedly Aiding Beijing’s Military

The U.S. Department of Defense has added Chinese tech giant Tencent and battery maker CATL to its list of companies allegedly working with China’s military, a move that could further escalate tensions between the U.S. and China. The “Section 1260H” list, which designates companies that may pose national security risks to the U.S., now includes 134 firms, with Tencent and CATL being two of the most prominent additions.

Tencent, the parent company of the popular messaging app WeChat, and CATL, the world’s largest electric vehicle battery maker, both rejected the accusations. Tencent called the move a “mistake” and stated that its business would not be affected, hinting at possible legal actions. CATL similarly denied any military-related activities and stated that it was not involved in any defense operations.

While the addition to the list does not directly impose sanctions, it could tarnish the companies’ reputations and heighten scrutiny from U.S. businesses and government entities. Lawmakers have long been critical of Chinese companies’ alleged ties to the Chinese government and its military ambitions.

The Pentagon’s move also affects several other Chinese firms, including drone manufacturer Autel Robotics, shipping giant COSCO, and China’s Commercial Aircraft Corporation (COMAC). U.S. lawmakers, such as John Moolenaar, voiced support for the list, warning that these companies pose security risks.

This development comes as the U.S. continues to tighten restrictions on Chinese firms, with some lawmakers calling for further actions against companies like CATL, which has partnerships with U.S. companies like Ford. Ford plans to license CATL’s battery technology for a new plant in Michigan, raising concerns among some in Congress about the potential security implications.

China, through its foreign ministry, condemned the U.S. sanctions and urged the immediate removal of what it termed “illegal unilateral sanctions.” The U.S. is expected to face increasing pressure from both domestic and international stakeholders as tensions over these designations and broader geopolitical issues grow.

CISA Reports No Indication of Broader Impact from Treasury Department Cyber Breach

The U.S. Cybersecurity and Infrastructure Security Agency (CISA) stated on Monday that there is “no indication” the recent cyber breach at the U.S. Treasury Department has affected any other federal agencies. This followed a report that Chinese hackers compromised several computers at the Treasury, stemming from a breach at cybersecurity contractor BeyondTrust.

While BeyondTrust confirmed that a limited number of its clients were affected, the company has not provided further details regarding which clients may have been impacted. The forensic investigation into the breach is still ongoing, and BeyondTrust has yet to confirm additional details about the scope of the attack.

Reports have suggested that the hackers specifically targeted the U.S. Treasury office responsible for administering economic sanctions, likely aiming to access information about Chinese entities under consideration for U.S. financial sanctions. This attack is part of an ongoing series of cyber incidents attributed to Chinese state-sponsored actors.

Republican lawmakers have called for a briefing on the incident. In response, Chinese Embassy spokesperson Liu Pengyu dismissed the claims, calling the reports “irrational” and part of “smear attacks” against China.

 

UN Aviation Agency Investigating Reports of Possible Data Breach

The International Civil Aviation Organization (ICAO), the UN’s civil aviation agency, is investigating reports of a potential data breach after claims surfaced that tens of thousands of its records may have been stolen. The ICAO, headquartered in Canada, confirmed in a brief statement that it was looking into the situation, which it suspects may involve a “threat actor known for targeting international organizations.”

The agency responded to a report made on a hacker forum on January 6, in which the claim was made that 42,000 records had been stolen from ICAO. However, ICAO has not provided further details on the nature of the breach or the specific data potentially involved.

As the investigation is still in its early stages, ICAO has refrained from offering additional comments on the situation. The organization did confirm, though, that it had been targeted by a similar cyberattack in 2016, after which it reportedly strengthened its cybersecurity measures.

ICAO has 193 member states and is responsible for setting global standards for aviation safety and security.