The US Department of Defence has added tech giant Tencent and battery maker CATL to its list of companies affiliated with China’s military.
The list, which identifies Chinese military companies operating in the US, was published in the US Federal Register.
Tencent operates WeChat super-app and offers services in gaming, content streaming, and cloud services.
CATL produces over one-third of the world’s electric vehicle batteries, used by manufacturers such as BMW, Honda, and Hyundai, plus Mercedes-Benz, Volkswagen and Toyota.
Section 1260H of the US National Defense Authorization Act for fiscal year 2021 mandates the Secretary of Defense to identify Chinese military companies every year until 31 December 2030.
The unclassified portion of this list, which also include a swath of Chinese companies, was published in the Federal Register.
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By GlobalDataStarting June 2026, the Pentagon will be prohibited from contracting directly with companies on the list.
By 2027, it will also be barred from procuring goods or services that involve these companies within their supply chains, the Financial Times reported.
While the list does not have direct legal implications, it can impact the reputations of the companies involved.
A Federal Register release noted that the entities that are part of the list could “request reconsideration of this decision.”
The US has implemented measures targeting Chinese tech companies over national security concerns.
In November 2024, China cautioned that it would take “necessary actions” to defend its companies if the US intensifies its restrictions on semiconductor sales.
An expert claimed that China is going to lose its global leadership in AI if the US continues trade restrictions on AI chips and the tools to manufacture them.