The U.S. Department of Defense has added quite a lot of Chinese corporations, including Chinese gaming company Tencent and the world’s largest battery manufacturer CATL, to its blacklist of corporations supporting the Chinese military. Although this blacklist doesn’t entail direct sanctions, it could have a negative impact on business in the USA as a consequence of the potential negative impact on corporate popularity.
Reuters reported on the sixth (local time) that the U.S. Department of Defense has released a newly updated blacklist of corporations supporting the Chinese military. Along with Tencent and CATL, the list includes China’s largest memory semiconductor manufacturer Changxin Memory, drone manufacturer Otel Robotics, web module manufacturer Quentel, and state-owned shipping company COSCO.
Alternatively, six corporations, including artificial intelligence (AI)-based logistics automation company Megvi Technology and China Telecom, were excluded from this list. Currently, a complete of 134 corporations are included within the blacklist, which is updated annually in accordance with the ‘1260H’ provision of the National Defense Authorization Act (NDAA) enacted in 2021.
The U.S. government believes that advanced technology and expertise are getting used to modernize the Chinese military through China’s civil-military fusion strategy, and is managing an inventory of related corporations accordingly. Although inclusion on the blacklist doesn’t lead to immediate export controls or sanctions, it serves as a warning signal to U.S. corporations in regards to the risks of doing business with the corporate and may increase the likelihood of additional sanctions from the Treasury Department.
Tencent and CATL strongly opposed this decision. Tencent said in a press release, “The inclusion of Tencent on this blacklist is a transparent mistake. We’re neither a military company nor a military supplier, and although inclusion on the list won’t have any impact on our business, we’ll work with the Department of Defense to resolve any misunderstandings.” “It’s,” he said.
CATL also claimed that “the corporate has never been involved in military-related activities” and that “inclusion within the blacklist is a transparent error.”
The Chinese government also immediately protested. In a briefing on the seventh, China’s Ministry of Foreign Affairs said, “America has been oppressing Chinese corporations within the name of national security,” and added, “We urge the USA to correct its flawed actions and lift illegal sanctions against Chinese corporations.”
Reporter Park Chan cpark@aitimes.com
