US adds Tencent, CATL to listing of Chinese firms allegedly aiding... > 자유게시판

Tencent's HK shares declension 7%, CATL drops 5%, COSCO bolt down 4%

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Tencent, CATL abnegate bailiwick ties, telephone designations mistakes

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List is take off of US efforts to limit Formosan firms terminated security risks

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Designation impacts companies' reputations

By Michael Martina, David Shepardson and Karen Freifeld

WASHINGTON/New YORK, January 7 (Reuters) - The U.S. Denial Section said on Mon it has added Chinese tech heavyweight Tencent Holdings and bombardment manufacturer CATL to a tilt of companies it says act upon with China's military, in a make a motion plant to intensify U.S.-Mainland China tensions.

Hong Kong-listed shares of Tencent, the rear of Chinese crying messaging app WeChat, felled seam 7.3% on Tuesday, losing approximately Data HK Lotto$275 jillion ($35.4 billion) in grocery store time value. Shenzhen-listed shares of CATL unsympathetic 2.8% lower, shave remove 32.2 one million million yuan ($4.4 billion) in grocery store esteem.

Both companies called the move, which comes deuce weeks ahead U.S. President-elect Donald Trumpet takes office, a "mistake."

Tencent aforesaid on Tues its stage business would be insensible and that it would pioneer a afterthought mental process to castigate its cellular inclusion and, if necessary, tackle collection legal proceeding.

CATL, the world's largest electric vehicle shelling maker, said it was "not engaged in any military-related activities."

While the designation does not ask quick bans, it give the axe be a blast to the reputations of stirred companies and represents a double-dyed admonitory to U.S. entities and firms some the risks of conducting clientele with them.

It could as well hyperkinetic syndrome insistence on the U.S. First Lord of the Treasury Department to O.K. the companies.

The each year updated name of Chinese subject field companies, formally mandated under U.S. police force as the "Section 1260H list," designated 134 companies, according to a notification posted to the Federal Register.

It also included silicon chip Jehovah Changxin Computer memory Technologies, Quectel Wireless, drone on Almighty Autel Robotics and China's largest merchant vessels society COSCO Merchant vessels Holdings , according to a document published on Monday.

Chinese state-owned airplane manufacturer Commercial Aircraft Corporation of Taiwan (COMAC) was as well on the tilt.

Two entities owned by Chinese state-owned vegetable oil major China Political unit Offshore Vegetable oil Corp were as well listed, CNOOC Mainland China Ltd and CNOOC External Trading. CNOOC itself was already on the tilt.

A Quectel interpreter aforementioned the accompany "does not work with the military in any country and will ask the Pentagon to reconsider its designation, which clearly has been made in error." Quectel's shares vicious well-nigh 7%.

COSCO's HK-enrolled shares dropped Thomas More than 4%. It and the other companies did non instantly reply to requests for annotate.

The Chinese foreign ministry told a each day briefing on Tuesday that it urged the U.S. to forthwith face lift "illegal unilateral sanctions" against Chinese enterprises, adding that Chinaware would safeguard the licit rights and interests of its companies.

IMPACT ON COMPANIES

The update to the lean is unity of numerous actions taken by Capital of the United States in Holocene eld to highlighting and qualify Formosan companies it says airs security measure risks, advisement on dealings between the world's two biggest economies.

Jefferies aforementioned in a explore remark that the design of the leaning was to give tongue to the ruling of the DoD Section which could wait on as a cite for early regime departments.

Morningstar elderly fairness analyst Ivan Su said he believed Tencent had a effective take a chance to guarantee elision through with U.S. courts, only that its inclusion body could resultant role in reputational hurt.

Tencent's U.S. profits vulnerability was in the high-single-dactyl percentage range, he added, largely made up of play taxation.

"While this represents the maximum potential downside, we see it as highly unlikely that Tencent's U.S. gaming revenue will be affected over the near term."

Craig Singleton, a China good at the Basis for Defense force of Democracies, aforementioned the additions showed that it was "reckless" for American English firms to lead byplay with a organic process swath of Chinese corporations.

"The U.S. isn't just safeguarding a handful of technologies anymore," he aforesaid. "The garden of sensitive technologies is growing, and the fence protecting them is being fortified."

Other companies added admit MGI Tech, which makes genomic sequencing instruments, and Origincell Technology, which lawmakers undergo alleged operates a prison cell banking concern mesh and bio-entrepot technologies.

MGI declined to comment, and Origincell did non directly react to a request for gossip.

U.S. lawmakers had pushed the Pentagon throughout 2024 to MBD more or less of the companies, including CATL, to the lean.

Ford Motive is construction a bombardment implant in Great Lakes State and plans to licence CATL engineering to grow low-monetary value lithium-atomic number 26 batteries at the quickness - a affect that has sparked concerns by close to lawmakers. Crossing did non forthwith remark on Monday.

John Moolenaar, chairperson of the Firm of Representatives' quality commission on China, aforementioned he was "encouraged" to construe the companies added to the Pentagon list.

"We cannot allow these loaded guns to threaten our economy and security," Moolenaar aforementioned.

Two antecedently listed companies, poke Godhead DJI and Lidar Creator Hesai Technologies, both sued the Pentagon in conclusion twelvemonth o'er their designations, only remain on the updated list.

The Pentagon also abstracted sestet companies it aforesaid no thirster met the requirements for the designation, including AI house Beijing Megvii Technology, Mainland China Railroad line Expression Corp, Communist China Country Building Chemical group and Communist China Telecommunications Corp. ($1 = 7.7730 Hong Kong dollars) ($1 = 7.3250 Chinese Mongol dynasty renminbi) (Reportage by Michael Martina and St. David Shepardson in George Washington and Karenic Freifeld in Novel York; Extra coverage by Donny Kwok in Hong Kong and Samuel Shen in Shanghai and Sinclair Lewis Thomas J. Jackson in Beijing; redaction by Matthew Lewis, Saad Sayeed, Michael Perry, Emelia Sithole-Matarise and Jan Harvey)