US Adds Tencent, CATL To List of Chinese Firms Aiding Beijing's Military (reuters.com)
- Reference: 0175841929
- News link: https://yro.slashdot.org/story/25/01/06/2216244/us-adds-tencent-catl-to-list-of-chinese-firms-aiding-beijings-military
- Source link: https://www.reuters.com/world/us-adds-tencent-catl-list-chinese-firms-allegedly-aiding-beijings-military-2025-01-06/
> The U.S. Defense Department said on Monday it has added Chinese tech giants including gaming and social media leader Tencent Holdings and battery maker CATL to a [1]list of firms it says work with China's military . The list also included chip maker Changxin Memory Technologies, Quectel Wireless and drone maker Autel Robotics, according to a document published on Monday. The [2]annually updated list (PDF) 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.
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> U.S.-traded shares of Tencent, which is also the parent of Chinese instant messaging app WeChat, fell 8% in over-the-counter trading. Tencent said in a statement that its inclusion on the list was "clearly a mistake." It added: "We are not a military company or supplier. Unlike sanctions or export controls, this listing has no impact on our business." CATL called the designation a mistake, saying it "is not engaged in any military related activities." 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."
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> 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, China Railway Construction Corporation Limited, China State Construction Group Co and China Telecommunications Corporation.
[1] https://www.reuters.com/world/us-adds-tencent-catl-list-chinese-firms-allegedly-aiding-beijings-military-2025-01-06/
[2] https://public-inspection.federalregister.gov/2025-00070.pdf
"Chinese military company" (Score:2)
Section 1260H 'requires the Secretary of Defense to identify and publish a list of “Chinese military companies” annually'. I had a look at the entity list and it is pretty long.
I'm not seeing a clear definition of "Chinese military company", maybe someone can cite it? A company which is primarily owned and controlled by the military for example? Or just controlled and making products upon demand? Or I guess it may simply be whatever is the 'informed opinion' of the secretary.
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The law explains it like always.
Section 1260H of the William M. (Mac) Thornberry National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2021
DEFINITIONS.—In this section: (1) CHINESE MILITARY COMPANY.—The term ‘‘Chinese military company’’— (A) does not include natural persons; and (B) means an entity that is— dkrause on LAP5T8D0R2PROD with PUBLAWS (i)(I) directly or indirectly owned, controlled, or beneficially owned by, or in an official or unofficial
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So basically SpaceX, Boeing, the guy who runs the pizza joint near the Pentagon etc. All US military companies because the US military contracted with them at some point.
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Yup. Lots of universities too. Carnegie Melon is even on the US DoD's own list of top 100 contractors.
I've helped several research groups (some of which weren't even American) apply for DoD grants to do medical research. They fund a lot of that stuff because the US Department of Veterans Affairs is the second largest healthcare provider in the US.
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Thanks for that info. So the definition is very broad, and can include "Any other entities the Secretary determines is appropriate".
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PRC de facto sanctions all foreign companies through things like requiring foreign companies to enter partnerships with locals when investing in the country and mandated technology transfers.
Discord, Reddit (Score:1)
Guess who owns non-controlling stakes in Discord and Reddit? Guess who is probably using both services to scrape user data just like ByteDance?
It's all of them (Score:5, Insightful)
China's default is the corporation does what the party wants.
China ain't the US, and even the US has options for the government bending a corporation to its will without letting the public know.
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The US default is that the government does what the corporation wants. In fact the new government is the corporations.
This move is pretty naked. They went after companies that are dominating. CATL batteries are years ahead of US ones and the gap is widening. The opportunities to get ahead are rapidly shrinking as CATL introduces new chemistries and ramps up production even faster.
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This list does not exist because of the supposed links of these companies. This list exists because those companies compete with US companies, and US companies can't handle actual competition. The "direct or indirect link to the Chinese military" is to satisfy the voters, who are told: China is scary.
The only reason the US hasn't bombed China into submission is because it has nukes.
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The USA needs CATL's best in class battery technology and they are willing to license it to Ford, Tesla, and others. Blocking them with sanctions and tariffs will not help the USA catch up in the race to develop an EV production capability. Instead the USA will continue to fall behind. This is just sad to watch.