US designates Tencent a Chinese military company, adding tech giant to blacklist
The U.S. Department of Defense (DOD) has added Chinese tech giant Tencent Holdings, Ltd. to its "blacklist" of companies that allegedly aide the Chinese military.
The DOD on Monday released its annual updated list of firms operating in the U.S. deemed to be "Chinese Military Companies," which is a requirement under Section 1260H of the Mac Thornberry National Defense Authorization Act (NDAA) of FY2021. Tencent was a new addition to the list.
The list is a warning to American companies to not work with these Chinese companies, and 134 companies are now on the list. While the designation does not mean immediate bans on the companies, it can be a blow to their reputations.
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Hong Kong-listed shares of Tencent, the parent of Chinese instant messaging app WeChat, fell 7.3% on Tuesday, losing about HK$275 billion ($35.4 billion) in market value.
Tencent called the DOD's move, which comes two weeks before President-elect Trump takes office, a "mistake."
The company said on Tuesday its business would be unaffected and that it would initiate a reconsideration process to correct its inclusion and, if necessary, undertake legal proceedings.
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Reuters and FOX News' Liz Friden contributed to this report.