US designates Tencent a Chinese military company, adding tech giant to blacklist

Group 1 - The U.S. Department of Defense has added Tencent Holdings to its blacklist of companies allegedly aiding the Chinese military, as part of the annual update required under the NDAA of FY2021 [1] - The blacklist now includes 134 companies, serving as a warning to American firms against collaboration with these Chinese entities, which can damage their reputations [2] - Following the announcement, Tencent's shares fell by 7.3%, resulting in a loss of approximately HK$275 billion ($35.4 billion) in market value [3] Group 2 - Tencent has labeled the DOD's decision as a "mistake" and stated that it would seek to correct its inclusion on the blacklist, potentially through legal actions [4]