Last week we informed you that the govt USA published a blacklist of companies suspected of collaborating with the Chinese militaryand among them was Tencent, one of the largest technology companies in China and the world, with stakes in companies such as Riot Games, Epic Games and Activision Blizzard, and which will be in talks to take over Ubisoft.
The Pentagon has not announced specific sanctions against these blacklists of companies, known as the CMC (Chinese Military Companies) List, but it recommends that US companies negotiate with them, which has led to sharp drop in Tencent shares. A spokesperson for the Chinese company denied the connection, clarifying that they are not a military company or supplier and that being on the list would not affect their business.
Now they’ve gone even further, with Tencent threatening “litigation” if the US doesn’t reverse its decision to label it a Chinese military company.
Tencent will take legal action if they are not removed from this blacklist
In a public statement, the company emphasized that “It is not a Chinese military company and it is not a taxpayer to the military-industrial merger of China’s defense base” and that while the allegation “does not affect its business”, the US Department of Defense made a “mistake” by publicly classifying the company as a Chinese military company.
The company initially insisted that its listing was simply due to a misunderstanding, but a later statement takes a much firmer tone: “The company intends to initiate a review process to correct this error”.
“During the process, engage in discussions with the US Department of Defense to resolve any misunderstandings and, to take legal action if necessary remove the company from the CMC List. “The company will make further announcements as necessary.”
The List of CMC is a relationship prepared by the United States Department of Defense that defines Chinese companies are believed to be affiliated with or cooperate with the Chinese military. This list is updated annually and, under the National Defense Authorization Act of 2024, prohibits the Department of Defense from doing business with certain companies beginning in June 2026.
CMC listing does not involve immediate sanctions or direct trade restrictionsbut it may affect the reputation of the mentioned companies and serve as a warning about the risks of establishing a business relationship with them. In addition to Tencent, Chinese tech giants such as SenseTime and CATL were added to the list, prompting protests from these companies, which deny links to the Chinese military.