Tencent Shares Plunge After Pentagon Designates It as Chinese Military Company

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Technology,Tencent,Pentagon

Tencent's US-listed shares dropped sharply after the Pentagon added the tech giant to a list of Chinese companies deemed to be operating with the Chinese military. While the designation carries no immediate legal consequences, it raises reputational concerns for Tencent, which owns the widely used messaging app WeChat. The Pentagon's move is part of a broader US effort to counter China's military ambitions and technological advancements.

Tencent’s US-listed shares fell as much as 9.8 per cent after the Pentagon designated the tech giant as a Chinese military company operating in the US. The gaming and social media group, which owns ubiquitous Chinese messaging app WeChat, was added to a list of dozens of companies the defence department considers to be working with the Chinese military directly or indirectly, according to a federal document published on Monday.

Tencent’s addition to the list “is clearly a mistake”, a company spokesperson said. “We are not a military company or supplier. Unlike sanctions or export controls, this listing has no impact on our business. We will nonetheless work with the Department of Defense to address any misunderstanding,” the spokesperson added. Tencent’s US-traded American depositary receipts were down about 8 per cent on Monday, after falling as much as 9.8 per cent earlier following the news.

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