What did Tencent say after being blacklisted by the US?

On January 7, Reuters reported that the US Department of Defense added Chinese tech giant Tencent to its sanctions list, citing the US reason that Wechat's parent company has cooperated with the Chinese military and could become a national security threat.

The news immediately sent Tencent’s stock price down 7.3%, wiping out $35.4 billion in market value. CATL, an electric vehicle battery maker that serves a third of the global market, was also added to the list. The company’s shares fell 2.8%, or $4.4 billion.

Tencent says it was all a "misunderstanding"

As soon as the US put it on the embargo list, Tencent responded: "This is a mistake. We are not a military enterprise or a military supplier. This list does not affect our business operations. However, we will continue to work with relevant US departments to resolve this misunderstanding."

The company said it was willing to cooperate to clarify the "misunderstanding", but would take legal action if necessary.

Tencent logo in front of a building in China

Tencent's clear message immediately received a lot of attention from the Chinese tech community. Under the announcement, nearly 40,000 user comments expressed support for Tencent. They said that the company behind the super app Wechat is a "victim" of the trade war. "Tencent is not guilty of anything. They just want to ban and Tencent is an option," wrote one Weibo user.

CATL also gave a similar response, affirming that they "do not participate in any military-related activities".

Reuters quoted the Chinese Foreign Ministry as saying that they called on the US to immediately lift "unilateral and illegal sanctions" on Chinese businesses. At the same time, they affirmed that the Chinese government will protect the legitimate interests of domestic companies.

Analysts say the ban does not mean immediate sanctions, but it could be a blow to the reputations of the companies named. It could also be a warning to business partners of the two Chinese companies. On the other hand, the ban could put pressure on the US Treasury Department to impose sanctions.

The US Department of Defense’s “Chinese military company list” has now grown to 134 entities and their subsidiaries. Analysts say the list is the view of the US Department of Defense but can be used as a reference for other government departments. The most serious consequence is that companies on the list could face a US investment ban.

Source: https://thanhnien.vn/tencent-noi-gi-sau-khi-bi-my-dua-vao-danh-sach-cam-185241219002702362.htm