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US Adds Tencent, Other Chinese Tech Giants to Military Companies List

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The US Defense Department has added Chinese tech giants including Tencent Holdings, CATL, Changxin Memory Technologies, Quectel Wireless and Autel Robotics to its annual list of Chinese military companies. The designation, which has no immediate impact on business operations, has triggered a stock market sell-off for the listed companies. Tencent and CATL have called the inclusion a mistake, stating they are not involved in military activities. This move further escalates tensions between the US and China.

WASHINGTON/NEW YORK -The U.S. Defense Department said on Monday it has added Chinese tech giants including gaming and social media leader Tencent Holdings list was to express the opinion of the Defense Department which could serve as a reference for other government departments.

"The U.S. isn't just safeguarding a handful of technologies anymore," he said."The garden of sensitive technologies is growing, and the fence protecting them is being fortified. Today's list lays bare that these aren't just commercial companies. They’re critical enablers of China's military modernization, directly fueling Beijing's strategic ambitions."

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.

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