The US Department of Defense has included the Chinese tech giant Tencent and battery manufacturer CATL on the list of companies working with China's military. The move prompted a harsh reaction from the Chinese government, which accused the US of "unjustified suppression."
A new drama started after the US Department of Defence included new entities on a list of companies that work with China's military. Among them was the tech giant Tencent Holdings, which owns the WeChat social media platform, and the EV battery maker CATL. Both companies called the move "a mistake," denying that they engaged in military-related activities.
While the decision does not equal an immediate ban on their products in the United States, it represents a significant hit to their reputation. It's no wonder their shares took a hit on Tuesday, with Tencent stock dropping 7.3% while CATL closed 2.8% lower. It might seem insignificant, but it represents losses of $35.4 billion and $4.4 billion, respectively.
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