US Accuses Tencent and CATL of Ties to Chinese Military

Wed Feb 04 2026 14:18:30 GMT+0200 (Eastern European Standard Time)

US officials have added Tencent and CATL to a list of firms alleged to have connections with China's military, raising tensions in business relations.

The US Department of Defense has placed Tencent, the parent company of WeChat, and battery manufacturer CATL on an updated list of companies linked to the Chinese military. This annual list, which now includes 134 firms, serves as a caution to American businesses about potential risks of collaboration with these companies. In response, both Tencent and CATL have refuted the allegations, stating that they are not involved in military activities. The Chinese government has condemned the US decision, labeling it an act of unreasonable suppression of Chinese entities.

This recent development underlines ongoing strains between the US and China, with the US concerned that Chinese firms are being leveraged to bolster military capabilities. The addition of companies to the list can prompt scrutiny and increase pressures for potential sanctions from the US Treasury Department. Tencent characterized its listing as a misunderstanding, asserting that it is not a military contractor and claiming the listing does not affect its business operations. CATL echoed similar sentiments, objecting to the US’s approach, suggesting it may deter foreign investments.

The US's decision to add these firms comes amid mounting political pressure, particularly as American automaker Ford explores investments that involve CATL's technology for a new battery plant in Michigan. The inclusion of these firms highlights the ongoing economic and technological rivalry that marks the relationship between Washington and Beijing. With President-elect Trump set to return to office, this issue is likely to remain at the forefront of US-China relations, further complicating efforts for collaborative business undertakings.