US adds Tencent, CATL to list of Chinese firms allegedly aiding Beijing's military

[Kaz]

 

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The U.S. Defense Department said on Monday it has added Chinese tech giant Tencent Holdings (0700.HK), opens new tab and battery maker CATL, opens new tab to a list of companies it says work with China's military, in a move set to escalate U.S.-China tensions.

 

Hong Kong-listed shares of Tencent, the parent of Chinese instant messaging app WeChat, fell 7.3% on Tuesday, losing about HK$275 billion ($35.4 billion) in market value. Shenzhen-listed shares of CATL closed 2.8% lower, shaving off 32.2 billion yuan ($4.4 billion) in market value.

Both companies called the move, which comes two weeks before U.S. President-elect Donald Trump takes office, a "mistake".

 

Tencent said on Tuesday its business would be unaffected and that it would initiate a reconsideration process to correct its inclusion and, if necessary, undertake legal proceedings.

CATL, the world's largest electric vehicle battery maker, said it was "not engaged in any military-related activities".

While the designation does not involve immediate bans, it can be a blow to the reputations of affected companies and represents a stark warning to U.S. entities and firms about the risks of conducting business with them.

 

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reuters.com

WWW.REUTERS.COM

 

 

Been saying for a while, Riot's anti-cheat system is way to invasive.  Seems the US government is concerned about the potential always on kernal level anti-cheat gives to China. 

Edited January 14 by Kaz
-Fixed quote