US Government Includes Tencent in Chinese Military Entity List

The US government has recently added Tencent, the company behind the popular messaging app WeChat, to the Section 1260H list, which identifies Chinese companies potentially associated with the Chinese military. This move, which also included battery manufacturer CATL and other Chinese organizations, serves as a caution for US businesses regarding trading with these entities.

Tencent and CATL Deny Military Connections

Both Tencent and CATL have refuted these claims, asserting that they are not military companies nor suppliers. Tencent labeled its inclusion in the list as a “mistake,” emphasizing that it will not affect its business operations. The annual update of the Section 1260H list also incorporates Huawei Technologies Company and various Chinese semiconductor manufacturers, pressuring these entities for potential sanctions by the US Treasury Department.

Reactions and Tensions Rise

In response to the updated list, the Chinese embassy in Washington criticized the US for breaching market competition principles and international trade rules, instigating uncertainties for foreign businesses investing in the US. As the US and its allies intensify efforts to remove Chinese technology from their markets due to national security concerns, the addition of Tencent and CATL exacerbates ongoing tensions between the US and China, particularly amid the looming return of President-elect Donald Trump to the White House.