The U.S. Department of Defense has designated CATL and Tencent as “Chinese military companies,” escalating trade and political tensions. The designation harms reputations, deters partnerships

Even before Donald Trump takes office on Monday, trade tensions between the world’s biggest economies are already heating up.

Now, Tencent, one of the largest multimedia companies in the world, finds itself appearing on the U.S. Department of Defense's list designating it as a Chinese Military company. According to Bloomberg (paywall), the designation sent Tencent's U.S. stock on a nasty decline.

The US defense department is now barred from working with CATL, China’s largest battery firm, and the Chinese social media giant Tencent.

Tencent hopes to negotiate with the US government to have it removed from a blacklist of firms believed to have ties with the Chinese military.

The move against Tencent and CATL is part of a flurry of final acts by the Biden administration ahead of Donald Trump’s return to the presidency. The White House has also launched a trade ...

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