Chinese tech companies Tencent, CATL and others protest US listings as army-linked companies

Chinese tech companies Tencent, CATL and others protest US listings as army-linked companies

Prominent Chinese companies, including Tencent, CATL, and SenseTime, have strongly objected to their recent designation by the U.S. Defense Department as entities tied to China’s military. The companies have pledged to challenge the decision through legal channels and diplomatic efforts.

The U.S. Defense Department recently updated its list of “Chinese Military Companies” (CMC), which now includes 134 firms. The designation prohibits the U.S. government from engaging with these companies starting June 2026 under the National Defense Authorization Act of 2024.

We view this inclusion as a mistake and will pursue all available remedies, including engaging with U.S. authorities and, if necessary, initiating legal proceedings,” the company announced.

Artificial intelligence firm Sense Time and CATL, the leading global supplier of electric vehicle batteries, also expressed their concerns. Both companies highlighted their civilian-oriented work, stressing their contributions to sustainable development and technological progress.

CATL emphasized its role in advancing green energy, stating that the designation risks undermining global efforts to combat climate change. Similarly, SenseTime underscored its focus on AI applications for healthcare and urban planning, rejecting any connection to military operations.

This move by the U.S. is part of a broader effort to curb China’s access to cutting-edge technologies, including artificial intelligence and semiconductors. Washington justifies these restrictions as necessary for safeguarding national security.

Analysts warn that the expanded CMC list could strain U.S.-China relations further, creating disruptions in global technology supply chains. The inclusion of major firms like Tencent and CATL might deter international collaborations and stifle innovation across borders.

In response to the designation, the listed Chinese companies are preparing to mount a defense through diplomatic negotiations and legal challenges. Tencent, CATL, and Sense Time are expected to initiate formal discussions with U.S. authorities to clarify their positions and seek removal from the list.

The unfolding dispute highlights the intensifying competition between the U.S. and China in the tech sector. The outcome of these challenges could shape future trade policies and redefine how global powers handle security-related economic measures.