The US has taken a step toward its goal of banning Chinese cars by 2030.
The Pentagon has added Chinese battery giant CATL to its blacklist, citing alleged ties to China’s military — a claim the company denies.
CATL and Tencent Blacklisted
CATL, the world’s largest supplier of electric vehicle batteries with a 38% global market share, is the latest addition to the Pentagon's list of companies accused of supporting China's military efforts. The move has already impacted CATL's stock, which dropped sharply after the news broke, as reported by the Financial Times.
“This is a mistake,” CATL told the Financial Times, defending its operations.
Social media giant Tencent has also been added to the blacklist, alongside several other Chinese companies, including semiconductor manufacturer Changxin Memory Technologies, drone maker Autel Robotics, and IT equipment producer Quectel Wireless.
The Pentagon says the blacklist aims to expose China’s strategy of blending military and civilian operations. It identifies companies that appear civilian but are believed to have links to China’s armed forces.
Both CATL and Tencent deny these allegations.
“CATL is not involved in military-related activities,” the battery company said, emphasizing its openness to discussions about its business practices.
For now, being blacklisted carries no immediate legal or financial penalties.
However, it is expected to complicate these companies’ ability to operate in the US. Starting next year, the Pentagon will be prohibited from purchasing goods or services from blacklisted companies or their supply chain partners.
The US has signaled that its stance on Chinese companies in the automotive and tech sectors is just beginning to tighten.
The Biden administration has proposed banning Chinese software in new cars by 2027. By 2030, Chinese cars are expected to be entirely prohibited in the US.
