U.S Government warns Tencent Poses Security Risk
The U. S Defense Department announced it had expanded its list of companies it claims to collaborate with China’s military, which includes Chinese tech behemoths Tencent Holdings, a leader in gaming and social media, and CATL, a manufacturer of batteries.
According to a document released on Monday, the list featured new additions Tencent, CATL, Changxin Memory Technologies Inc. (CXMT), Quectel Wireless, drone manufacturer Autel Robotics, and WeChat parent company Tencent.
Although the designation does not result in immediate bans, it serves as a clear warning to U.S. businesses that harm the reputations of impacted companies, Additionally, it might increase pressure on the Treasury Department to impose sanctions on the businesses
The list of Chinese military companies is updated yearly as required by U.S. law. 134 companies were named on what is known as the “Section 1260H list” in a notice published in the Federal Register.
The company “does not work with the military in any country and will ask the Pentagon to reconsider its designation, which has been made in error,” according to a Quectel representative.
The updated list is just one of many steps Washington has taken in recent years to identify and restrict Chinese companies it claims pose security risks, amid tense relations between the two largest economies in the world. U. S. Throughout 2024, lawmakers urged the Pentagon to include a few of the businesses on the list.
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