The U.S. Department of Defense has added several Chinese technology firms, including Tencent and battery manufacturer CATL, to its list of entities deemed affiliated with China’s military structures. The Section 1260H list, updated annually, now comprises 134 companies as of 2025.
Inclusion in the list does not trigger immediate sanctions but intensifies pressure on the U.S. Treasury, which may impose restrictions on the mentioned firms. This decision is rooted in concerns that Chinese companies and research institutions contribute to strengthening China’s military capabilities.
Tencent, the owner of the popular WeChat app, has denounced its inclusion as erroneous, emphasizing that the designation will not affect its operations. Similarly, CATL has denied any ties to military structures, describing Washington’s decision as a breach of international economic norms.
China’s embassy in the U.S. has condemned the listing of these companies, asserting that such actions erode foreign investors’ confidence in the American market. Embassy spokesperson Liu Pengyu stated that the U.S.’s measures contradict the very principles of free competition that it advocates.
Interest in CATL has grown following American automaker Ford’s announcement of plans to invest $2 billion in building a battery manufacturing facility in Michigan utilizing CATL’s technology. In the wake of these developments, Tencent’s shares fell 7% on the Hong Kong Stock Exchange, while CATL’s declined by 4%.
