The U.S.’ latest move to expand its list of Chinese military companies risks doing more than tanking the shares of some of its most valuable companies: It also threatens to accelerate decoupling of the world’s biggest economies.
The administration of U.S. President Joe Biden on Monday added Tencent, the world’s largest gaming publisher, and Contemporary Amperex Technology Co. Limited (CATL), a key battery supplier to Tesla, to its list of "Chinese military companies” — firms it says are working directly or indirectly with the People’s Liberation Army, or contributing significantly to China’s industrial base.
Since the first list was put out in 2021, as mandated by a law passed in the waning days of Donald Trump’s first term, it has expanded to 134 companies — including four of China’s top 20 in terms of market capitalization, which together are valued at almost $1 trillion.
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