US adds Tencent, CATL to list of Chinese firms allegedly aiding Beijing’s military

By Michael Martina, David Shepardson and Karen Freifeld

WASHINGTON (Reuters) – The U.S. Defense Department said Monday it had added Chinese tech giants including gaming and social media leader Tencent Holdings (OTC:) and battery maker CATL to a list of firms it says work with China’s military.

The list included new additions WeChat-parent Tencent, CATL, chip maker Changxin Memory Technologies Inc (CXMT), Quectel Wireless and drone-maker Autel Robotics , according to a document published Monday.

The annually updated list of Chinese military companies, formally mandated under U.S. law as the “Section 1260H list”, designated 134 companies, according to a notice posted to the Federal Register.

A Quectel spokesperson said the company “does not work with the military in any country and will ask the Pentagon to reconsider its designation, which clearly has been made in error”.

The other companies and the Chinese Embassy in Washington did not respond to requests or did not immediately comment.

Amid strained relations between the world’s two biggest economies, the updated list is one of numerous actions Washington has taken in recent years to highlight and restrict Chinese companies it says pose security risks.

U.S. lawmakers had pushed the Pentagon throughout 2024 to add some of the companies to the list.

While the designation does not involve immediate bans, it can be a blow to the reputations of affected companies and represents a stark warning to U.S. entities and firms about the risks of conducting business with them. It could also add pressure on the Treasury Department to sanction the companies.

Two previously listed companies, drone-maker DJI and Lidar-maker Hesai Technologies, both sued the Pentagon last year over their previous designations, but remain on the updated list.

The Pentagon also removed six companies it said no longer met the requirements for the designation, including AI firm Beijing Megvii Technology Co., Ltd., China Railway Construction Corporation Limited (CRCC), China State Construction Group Co., and China Telecommunications Corporation.