Pentagon Accuses CATL and Tencent of Ties to Chinese Military, Companies Dispute Listing

The U.S. Department of Defense has added several prominent Chinese companies, including CATL (Contemporary Amperex Technology Co. Limited), the world’s largest battery manufacturer, and Tencent, a leading video game giant, to its list of Chinese military companies, citing their alleged support for the Chinese military.

On Monday, the Pentagon published an updated roster of Chinese Military Companies in the Federal Register. In addition to CATL and Tencent, the list now includes Changxin Memory Technologies (CXMT), China’s top memory semiconductor maker; drone manufacturer Autel Robotics; internet connectivity module producer Quectel; and the state-owned shipping behemoth COSCO. Six companies, including the AI-based logistics automation firm Megvii and China Telecom, were removed from the list, bringing the total to 134 companies.

The U.S. government maintains this list to monitor Chinese firms that are believed to be leveraging advanced technology and expertise to support the modernization of the People’s Liberation Army (PLA), which aligns with Beijing’s military-civil fusion strategy. The Chinese Military Companies list is part of a broader set of lists that the U.S. government keeps for national security purposes. The designation is based on Section 1260H of the National Defense Authorization Act (NDAA) for Fiscal Year 2021.

It is important to note that being placed on this list does not automatically trigger sanctions or export controls. However, starting June 30, 2026, the U.S. Department of Defense will be prohibited from engaging in business transactions with these listed companies under the National Defense Authorization Act for Fiscal Year 2024.

Defense analysts have pointed out that inclusion on this list could harm a company’s reputation and serve as a warning to U.S. companies about the potential risks of doing business with Chinese firms listed here.

Both CATL and Tencent have strongly opposed their inclusion on the list, arguing that it was a mistake. CATL stated that their company is not involved in military-related activities, while Tencent echoed similar sentiments, calling the listing a clear error. Tencent also emphasized that, unlike export controls, this designation does not affect their business operations in the U.S. They added that they will engage with U.S. authorities to resolve misunderstandings.

Following the news of Tencent’s addition to the list, the company’s stock traded on the U.S. over-the-counter market (QTCPK) saw significant volatility, dropping by 9.3% during trading hours.