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China technology heavyweights Tencent Holdings Hong Kong stocks fell 5.4% after the company was included List of “Chinese Military Industrial Enterprises” By the U.S. Department of Defense.
Earlier, Tencent’s American depositary receipts fell nearly 8% on Wall Street.
Other Chinese companies on the list include battery manufacturers Ningde erawhich is part of the car manufacturer’s supply chain, e.g. Ford and Tesla.
CATL’s share price once fell 5.6%, and the Shenzhen stock market finally fell 3.5%.
this National Defense Authorization Act of 2024 It stated that starting in June 2026, the Department of Defense will be prohibited from purchasing goods or services directly from entities on the list, and starting in June 2027, it will be prohibited from purchasing goods or services indirectly from entities on the list.
In response to the decision, Tencent said in a statement that its inclusion on the list was “obviously a mistake.”
“We are not a military company or supplier. Unlike sanctions or export controls, this listing has no impact on our business,” the company added.
In its response, CATL also called the designation “a mistake” and said the company “is not engaged in any military-related activities.”
The United States targets Chinese technology companies and restricts the transfer of high-end technology to China. Last year, China revoked certain licenses to sell chips to China’s Huawei in May and introduced sweeping new export controls on key technologies including quantum computing and semiconductor products in September.
2022, The U.S. Department of Commerce’s Bureau of Industry and Security stated Companies must apply for licenses if they want to sell certain advanced computing semiconductors or related manufacturing equipment to China.
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