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.
