The US Department of Defense has added tech giant Tencent and lithium-ion battery maker CATL to its list of Chinese military companies, as reported earlier by Bloomberg. The designation doesn’t impose sanctions or a ban, but it could make it more difficult for the companies to do business in the US.
Along with owning the popular messaging app WeChat, Tencent is a major name in the gaming industry, as it owns League of Legends developer Riot Games and has invested in many others, including Epic Games, Larian Studios, Ubisoft, and FromSoftware. Meanwhile, CATL is the world’s biggest electric vehicle battery maker, with its products appearing across EVs from Tesla, Ford, Volkswagen, BMW, and more.
The designations originate from President-elect Donald Trump’s executive order in 2020, which prevented US companies from investing in entities with ties to the Chinese military. DJI, which was put on the list in 2022, says US Customs is blocking its drone imports and eventually filed a lawsuit claiming the designation has resulted in “lost business deals” and a stigma “as a national security threat.”
These companies don’t always stay on the Department of Defense’s list, as the US removed Chinese phone maker Xiaomi just months after adding it in 2021. Both Tencent and CATL plan to push back on the designations. “We are not a military company or supplier,” Tencent spokesperson Danny Marti said in a statement to The Verge. “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.” CATL similarly told Bloomberg that its inclusion was “clearly a mistake.”
The Verge reached out to CATL with a request for comment but didn’t immediately hear back.