U.S Government warns Tencent Poses Security Risk

The U. S Defense Department announced it had expanded its list of companies it claims to collaborate with China’s military, which includes Chinese tech behemoths Tencent Holdings, a leader in gaming and social media, and CATL, a manufacturer of batteries.

According to a document released on Monday, the list featured new additions Tencent, CATL, Changxin Memory Technologies Inc. (CXMT), Quectel Wireless, drone manufacturer Autel Robotics, and WeChat parent company Tencent.

BrokerReviewRegulatorsMin DepositWebsite
🥇Read ReviewFCA, CySEC, ASIC, MAS, FSA, EFSA, DFSA, CFTCUSD 100Visit Broker
🥈Read ReviewFSCA, FSC, ASIC, CySEC, DFSAUSD 5Visit Broker
🥉Read ReviewCySEC, MISA, FSCAUSD 25Visit Broker
4Read ReviewASIC, BaFin, CMA, CySEC, DFSA, FCA, SCBUSD 200Visit Broker
5Read ReviewASIC, FCA, CySEC, SCBUSD 100Visit Broker
6Read ReviewFCA, FSCA, FSC, CMAUSD 200Visit Broker
7Read ReviewBVI FSCUSD 1Visit Broker
8Read ReviewCBCS, CySEC, FCA, FSA, FSC, FSCA, CMAUSD 10Visit Broker
9Read ReviewASIC, CySEC, FSCA, CMAUSD 100Visit Broker
10Read ReviewIFSC, FSCA, ASIC, CySECUSD 1Visit Broker

Although the designation does not result in immediate bans, it serves as a clear warning to U.S. businesses that harm the reputations of impacted companies,  Additionally, it might increase pressure on the Treasury Department to impose sanctions on the businesses

The list of Chinese military companies is updated yearly as required by U.S. law. 134 companies were named on what is known as the “Section 1260H list” in a notice published in the Federal Register.

The company “does not work with the military in any country and will ask the Pentagon to reconsider its designation, which has been made in error,” according to a Quectel representative.

The updated list is just one of many steps Washington has taken in recent years to identify and restrict Chinese companies it claims pose security risks, amid tense relations between the two largest economies in the world. U. S. Throughout 2024, lawmakers urged the Pentagon to include a few of the businesses on the list.

 

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
ABOUT THE AUTHOR See More
Olumide Adesina
Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks, analyzes, and reports changes in financial markets with over 15 years of working experience in investment trading.
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
0 Comments
Oldest
Newest Most Voted
Inline Feedbacks
View all comments

Add 3442

Add 3440