Jonathan Rae Nurfoto | getty images
Shares of Chinese tech giants tencent holdings Hong Kong shares fell 7% after the company joined A list of “Chinese military companies” By the US Department of Defense.
The move comes after a decline of nearly 8% TencentAmerican Depositary Receipts on Wall Street.
Other Chinese companies included in the list include battery maker CATLwhich is part of the supply chain for vehicle manufacturers such as ford And Tesla,
CATL shares, which fell as much as 5.6%, were down 2.8% in Shenzhen.
National Defense Authorization Act of 2024 Says DoD will be banned from purchasing goods or services directly from entities on the list in June 2026 and indirectly from June 2027.
In response to the decision, Tencent said in a statement that its inclusion on the list was “clearly a mistake.”
The company said, “We are not a military company or supplier. Unlike sanctions or export controls, this listing has no impact on our business.” CATL also called the designation “a mistake” in a response and said, “It does not involve any military-related activities.”
Ivan Su, senior equity analyst at Morningstar, said Tencent did manage to secure its exclusion from the list through US courts due to the company’s business model, which primarily revolves around social networking and online gaming. There’s a good chance to do it.
The US has targeted Chinese tech companies as it seeks to restrict the transfer of high-end technologies to China. Last year, it Some licenses to sell chips to China’s Huawei were canceled in May And New comprehensive export controls unveiled on critical technologies including quantum computing and semiconductor stuff in September.
in 2022 The US Department of Commerce’s Bureau of Industry and Security said If companies want to sell certain advanced computing semiconductors or related manufacturing equipment to China, they must apply for a license.
