U.S. Adds Tencent to Chinese Military Companies Blacklist
Published On Jan 6, 2025, 11:02 PM
The Pentagon has added Tencent, the leading Chinese social media and gaming company, to its list of military companies, which resulted in a nearly 10% drop in Tencent's stock. This action is part of ongoing tensions between the US and China. Tencent has refuted the claim, stating that it is not a military entity and will seek to clarify this with the Department of Defense. Along with Tencent, another major company, CATL, was added to the list, raising warnings for US businesses that collaborate with designated firms.
Stock Forecasts
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Negative
Tencent is facing significant headwinds due to its designation as a military company, which could lead to further restrictions and loss of business in the US. This designation might deter investors, leading to continued bearish sentiment around the stock.