Tencent Stock Plunges 7% After US Military Designation
Tencent Holdings and CATL experienced significant share price drops after the U.S. Department of Defense added them to its list of Chinese military companies, a designation both firms deny. The National Defence Authorization Act of 2024 prohibits U.S. procurement from listed entities, starting in 2026. While Tencent maintains the listing is erroneous and anticipates legal recourse, analysts express concerns about potential long-term impacts, particularly for CATL’s U.S. business. This action is part of a broader U.S. effort to limit China’s access to advanced technologies.
John Q. Hosedrinker