WASHINGTON: The US Protection Division stated on Monday (Jan 6) it had added Chinese language tech giants together with gaming and social media chief Tencent Holdings and battery maker CATL to a listing of companies it says work with China’s navy.
The checklist additionally included chip maker Changxin Reminiscence Applied sciences, Quectel Wi-fi and drone maker Autel Robotics, in keeping with a doc printed on Monday.
The yearly up to date checklist of Chinese language navy firms, formally mandated below US legislation because the “Part 1260H checklist,” designated 134 firms, in keeping with a discover posted to the Federal Register.
The Hong Kong-listed shares of Tencent fell as a lot as 7 per cent in early commerce, whereas the US-traded shares of the corporate, which can be the mother or father of Chinese language prompt messaging app WeChat, fell 8 per cent in over-the-counter buying and selling.
Tencent stated in an announcement that its inclusion on the checklist was “clearly a mistake”. It added: “We’re not a navy firm or provider. Not like sanctions or export controls, this itemizing has no affect on our enterprise.”
CATL, the world’s largest electrical automobile battery maker whose Shenzhen-listed shares dropped greater than 5 per cent, additionally referred to as the designation a mistake, saying it “is just not engaged in any military-related actions”.
A Quectel spokesperson stated the corporate “doesn’t work with the navy in any nation and can ask the Pentagon to rethink its designation, which clearly has been made in error”. Quectel’s shares fell practically 7 per cent.
The opposite firms and the Chinese language embassy in Washington didn’t instantly reply to requests for remark.
IMPACT ON COMPANIES
The up to date checklist is one in all quite a few actions taken by Washington lately to spotlight and limit Chinese language firms it says pose safety dangers, weighing on strained relations between the world’s two largest economies.
Jefferies stated in a analysis be aware the aim of the Chinese language Army Firms (CMC) checklist was to specific the opinion of the Protection Division which may function a reference for different authorities departments.
“Essentially the most critical consequence for CMC firms is US funding ban, however it’s all as much as Trump and his staff.”
