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[Alpha Biz= Kim Jisun] The U.S. Department of Defense has included China's largest and world’s leading battery producer, Contemporary Amperex Technology Co. Ltd. (CATL), and gaming giant Tencent, among other companies, in its list of Chinese companies supporting the Chinese military.

On Monday (local time), the U.S. Department of Defense updated and published the list of “Chinese Military Companies” in the Federal Register. The updated list includes CATL, Tencent, along with other companies such as China's leading memory semiconductor maker, ChangXin Memory Technologies (CXMT), drone company Autel Robotics, internet module manufacturer Quectel, and state-owned shipping company COSCO Shipping.

Six companies, including AI-based logistics automation firm Megvii and China Telecom (CTC), were excluded from this list, bringing the total number of companies to 134.

The U.S. government claims that these Chinese companies use advanced technologies and expertise in support of China’s military modernization under the Chinese government’s “military-civil fusion” strategy, and that this list helps monitor such activities.

The U.S. government maintains several lists of Chinese companies, and this particular update is based on Section 1260H of the National Defense Authorization Act (NDAA) for fiscal year 2021.

While being designated as a “military company” does not immediately trigger sanctions or export controls, the NDAA for fiscal year 2024 prohibits the U.S. Department of Defense from engaging with these companies starting June 30, 2026. From 2027 onward, they will also be excluded from the defense supply chain.

Being added to the list could damage the reputation of the affected companies, and serves as a warning to U.S. entities and companies that engage with these firms about the potential risks.

Both CATL and Tencent strongly rejected being labeled as “military companies.” According to Chinese media outlet Tencent Technology, CATL stated, “This is a mistake; the company has not participated in any military-related activities.”

Tencent, in a public statement on Tuesday, confirmed its inclusion on the U.S. Department of Defense’s list and declared, “We are not a ‘Chinese military company’ nor part of the Chinese military-civil fusion enterprise. We plan to initiate a review process to correct this mistake and, if necessary, will pursue legal action to have our company removed from the list.”

 

 

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