News 09 January 2025

US adds tech giant Tencent and battery maker CATL to Chinese military companies list

The US Department of Defense (‘DOD’) has designated Chinese tech conglomerate Tencent Holdings, electric vehicle battery manufacturer Contemporary Amperex Technology (‘CATL’), and shipping giant COSCO among companies it says are linked to China’s military.

They were among 134 new additions to the Pentagon’s Section 1260H list of ‘Chinese military companies operating in the United States’ under the 2021 Defence Authorisation Act, according to a 7 January Federal Register notice explaining the list is updated annually.

Cosco Shipping Corporation Limited is a global company whose US operations include COSCO SHIPPING (North America) Inc and COSCO SHIPPING Finance Co, Ltd.

The designation expands the growing list of major Chinese firms identified by the Defence Department as having military ties. Companies placed on the list face potential restrictions on their US operations and business dealings, though no immediate bans or action.

The notice also removed six previously listed entities, including China Railway Construction Corporation Limited and China State Construction Group Co, and outlined a process for companies to request reconsideration of their designation.

In Beijing, Foreign Ministry Spokesperson Guo Jiakun slammed the latest US designations. ‘We urge the US to immediately correct its wrongdoings, and end the illegal unilateral sanctions and long-arm jurisdiction on Chinese companies. China will take all measures necessary to firmly defend the lawful rights and interests of Chinese companies and uphold its legitimate right to development,’ he warned.

Meanwhile, the US Commerce Department added 13 entities to its export control list, including 11 Chinese companies supporting military modernisation and a Pakistani firm linked to ballistic missile development, according to a 6 January Federal Register notice. The Bureau of Industry and Security (‘BIS’) said Chengdu RML Technology Co ‘has supplied the People’s Liberation Army (PLA) with precision-guided missiles and satellite communication systems,’ while Chengdu Yaguang Electronics and its parent company provided ‘dual-use electronic components’ to the Chinese military.

Several Chinese research institutes were designated for ‘hypersonic weapons development, design and modeling of vehicles in hypersonic flight,’ and supporting ‘China’s military-civil fusion efforts,’ BIS said.

The agency also added Pakistan’s Emerging Future Solutions Private Limited for ‘contributions to Pakistan’s ballistic missile programme’ and a Burmese firm providing surveillance support to Myanmar’s military regime.

The designations impose a licence requirement for all US-regulated exports to these entities with a ‘presumption of denial’ review policy.

https://public-inspection.federalregister.gov/2025-00070.pdf https://www.federalregister.gov/documents/2025/01/06/2024-31468/revisions-to-the-entity-list
https://www.fmprc.gov.cn/eng/xw/fyrbt/lxjzh/202501/t20250107_11528563.html