Tencent, a major player in China’s tech and entertainment scene, is contemplating legal action against the United States after being designated as a military-linked company. The company communicated to its investors that it believes this classification to be incorrect and clarified that it has no ties to China’s military.
In a statement, the board’s chair, Ma Huateng, emphasized that Tencent does not qualify as a military company nor participates in military-civil fusion efforts related to the Chinese defense sector. He highlighted that the company’s inclusion on the Chinese Military Companies (CMC) list seems to be a misunderstanding.
Unlike other lists managed by the U.S. government, which are focused on sanctions or export restrictions, Ma pointed out that being on the CMC List pertains solely to U.S. defense procurement, and thus, doesn’t impact Tencent’s operations.
To address this issue, Tencent plans to initiate a Reconsideration Process aimed at amending the error. Throughout this process, they will engage in talks with the U.S. Department of Defense to clear up any confusion. Should it become necessary, they are prepared to pursue legal action to ensure they’re removed from the CMC List. The company assures it will provide further updates as the situation unfolds.
