US adds Tencent and CATL to blacklist
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The news: The US has blacklisted the world’s biggest gaming publisher Tencent Holdings and top electric vehicle battery maker Contemporary Amperex Technology (CATL) for alleged links to the Chinese military.
The numbers: Tencent shares fell more than 7% in Hong Kong and CATL lowered over 5%.
The context: CATL, a major supplier to Tesla, and Tencent, China's most valuable company, have been added to a federal register of organisations deemed to have ties with the Chinese army. Both companies have denied ties to the military.
The move threatens to escalate tensions between the US and China. The federal register discourages US companies from dealing with blacklisted firms.
What they said: CATL said it was "a mistake" for the US Department of Defence to add it to the register, Bloomberg reported. Tencent confirmed that it is "not a military company or supplier" and will seek to work with the department to "address any misunderstanding".
The sources: Bloomberg, Department of Defense
