US says know-how large Tencent works with Chinese language navy
The US has added a number of Chinese language know-how corporations, together with gaming and social media large Tencent and battery maker CATL, to a listing of companies it says work with China’s navy.
The listing serves as a warning to American corporations and organisations concerning the dangers of doing enterprise with Chinese language entities.
Whereas inclusion doesn’t imply an instantaneous ban, it could actually add strain on the US Treasury Division to sanction the corporations.
Tencent and CATL have denied involvement with the Chinese language navy, whereas Beijing mentioned the choice amounted to “unreasonable suppression of Chinese language corporations”.
The Division of Protection’s (DOD) listing of Chinese language navy corporations, which is formally often known as the Part 1260H listing, is up to date yearly and now consists of 134 corporations.
It’s a part of Washington’s method to counteracting what it sees as Beijing’s efforts to extend its navy energy by utilizing know-how from Chinese language corporations, universities and analysis programmes.
In response to the most recent announcement Tencent, which owns the messaging app WeChat, mentioned its inclusion on the listing was “clearly a mistake.”
“We’re not a navy firm or provider. In contrast to sanctions or export controls, this itemizing has no impression on our enterprise,” a spokesperson for the corporate informed the BBC.
CATL additionally known as the designation a mistake and mentioned it “shouldn’t be engaged in any navy associated actions.”
“The US’s practices violate the market competitors rules and worldwide financial and commerce guidelines that it has all the time advocated, and undermine the arrogance of international corporations in investing and working in america,” mentioned Liu Pengyu, a spokesperson for the Chinese language embassy in Washington.
The Pentagon had come beneath strain from US lawmakers so as to add among the corporations, together with CATL, to the listing.
This strain got here as US automotive making large Ford mentioned it will make investments $2bn (£1.6bn) to construct a battery plant in Michigan. It has mentioned it plans to license know-how from CATL.
Ford didn’t instantly reply to a BBC request for remark.
The announcement comes as relations between the world’s two largest economies stay strained.
In the meantime, President-elect Donald Trump, who has beforehand taken a tricky stance towards Beijing, is because of return to the White Home this month.
The Pentagon was sued final final 12 months by drone maker DJI and Lidar-maker Hesai Applied sciences over their inclusion on the listing. They each stay on the up to date listing.
Tencent shares had been buying and selling round 7% decrease in Hong Kong on Tuesday. CATL was down by about 4%.
