US Accuses Tencent of Ties to Chinese Military, Escalating Tensions

Sat Jan 24 2026 00:21:30 GMT+0200 (Eastern European Standard Time)

Washington adds Tencent and CATL to military-related business list, raising concerns for American investments.

The US Department of Defense has labeled several Chinese tech companies, including Tencent and CATL, as linked to the Chinese military, intensifying scrutiny and potential sanctions amidst ongoing US-China tensions.

The United States has implicated several prominent Chinese technology firms, notably Tencent, which oversees the popular social media platform WeChat, and the battery producer CATL, in its latest list of companies purportedly collaborating with the Chinese military. This list, formally recognized as Section 1260H, serves as a cautionary signal to American businesses concerning the perceived risks of association with Chinese enterprises. While being named does not automatically lead to prohibitions, it significantly raises the stakes for potential sanctions from the US Treasury Department.

Both Tencent and CATL have firmly rejected the allegations, with Tencent asserting that its inclusion on the list is “clearly a mistake," emphasizing that it does not function as a military entity or supplier. Following these developments, Beijing vehemently criticized the US decision as an “unreasonable suppression” of Chinese businesses, underscoring the heightened diplomatic tensions between the two nations.

The Pentagon's latest update marks an expansion to 134 companies on its military links list, illustrating Washington's strategy to confront what it perceives as China's ambition to bolster its military capabilities through technological resources derived from domestic firms, educational institutions, and research initiatives.

Chinese embassy spokesperson Liu Pengyu criticized the US move, claiming it undermines foreign investors' confidence in engaging with the American market. An earlier push from US lawmakers prompted the Pentagon to include several firms, including CATL, against the backdrop of significant investments by US automotive giant Ford, which is set to invest $2 billion in a new Michigan battery plant, potentially utilizing CATL's technology.

This latest round of accusations comes in a climate of increasing strain between the US and China, coinciding with the return of President-elect Donald Trump, known for his tough stance toward Beijing. The situation remains fluid as past legal challenges against the Pentagon by firms like DJI and Hesai Technologies for their placement on the list are still unresolved.