Tencent Shares Dip After Pentagon Blacklist Inclusion

Tencent Holdings Ltd. and Contemporary Amperex Technology Co. Ltd. (CATL) have been blacklisted by the U.S. Department of Defense for alleged ties to the Chinese military, Bloomberg News reported.

Tencent’s stock dropped over 7% in Hong Kong, marking its steepest fall since October. I Photo: RonaldFNg Wikimedia Commons

The move comes just weeks before President-elect Donald Trump assumes office and targets Tencent, the world’s largest gaming publisher, and CATL, a leading supplier of electric vehicle batteries.

Both companies denied any connections to the Chinese military and criticized the inclusion as a mistake.

Tencent’s stock dropped over 7% in Hong Kong, marking its steepest fall since October, while CATL’s shares fell more than 5%. The blacklist does not impose direct sanctions but discourages U.S. companies from working with listed entities.

CATL’s inclusion could disrupt the global automotive supply chain, as it supplies major automakers, including Tesla, Volkswagen, and Stellantis NV. The blacklisting is expected to heighten tensions between the U.S. and China, further complicating the relationship between the world’s two largest economies.