The U.S. Defense Department has recently included numerous Chinese companies, such as Tencent, SenseTime, and CATL, in its list of companies with alleged connections to China’s military. This move has sparked protests from some of these companies, who are determined to challenge and overturn the decision.
In recent years, Washington has been actively working to limit the sharing of advanced technology, such as semiconductors and AI, due to concerns over national security.
The Defense Department annually updates its list of “Chinese Military Companies” (CMC list), which now includes 134 companies. Starting in June 2026, the Defense Department is prohibited from engaging with these designated companies under the National Defense Authorization Act of 2024.
Tencent, the world’s largest video gaming company and operator of the Chinese messaging platform WeChat, saw its shares in Hong Kong drop by 7.3% on Tuesday. In response, the company announced that it would be taking action to address the situation. Tencent stated that it would initiate a reconsideration process to rectify what it believes to be a mistake. The company also expressed its intention to engage in discussions with the Defense Department and, if necessary, take legal measures to have its name removed from the list.
Tencent stated in an announcement to the Hong Kong Stock Exchange that it believes its inclusion in the CMC List is a mistake. The company clarified that it is not a Chinese military company nor a contributor to the Chinese defense industrial base.
According to the company, being included in the CMC List only has an impact on U.S. defense procurement and does not affect the overall business operations of the Group.
According to a statement published on its official website, battery manufacturer CATL claims that it has never been involved in any military-related business or activities. The company further asserts that the recent designation will not negatively affect its operations.
CATL, like Tencent, asserts that being included on the list was a “mistake” and expresses its intention to actively engage with the Pentagon in order to rectify the false designation. The company also states that it will take legal action if necessary to safeguard the interests of both the company and its stakeholders. As a result, CATL’s stock experienced a decline of 2.84% in Shenzhen.
SenseTime, an AI company, has strongly denied the inclusion of its name on the list, stating that the decision lacks any factual basis.
SenseTime strongly disagrees with the decision, stating that it will not have any significant impact on their global operations.
SenseTime is firmly committed to collaborating with relevant stakeholders in addressing this matter and ensuring the protection of the company and its shareholders’ interests.
In a daily news briefing, Guo Jiakun, spokesperson for the Chinese Ministry of Foreign Affairs, called on the U.S. to rectify its erroneous practices and remove the illegal unilateral sanctions and long-arm jurisdiction imposed on Chinese companies.
Guo expressed China’s strong opposition to the United States’ excessive expansion of the national security concept, its creation of discriminatory lists based on various pretexts, and its unjustified suppression of Chinese companies. He emphasized that these actions are impeding China’s high-quality development.
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