Gaming industry concerned as US targets Tencent and CATL
The US has blacklisted two big Chinese companies, Tencent and Contemporary Amperex Technology Co. Ltd. (CATL) as they are accused of having links to the Chinese military. This move is raising concerns in the gaming and electric vehicle (EV) industries.
Tencent is the world’s biggest gaming publisher, while CATL is the top supplier of EV batteries, including Tesla Inc. Both companies denied any military links and called the action a mistake. Tencent owns parts of big gaming companies like Epic Games and Activision Blizzard.
After the news, its shares dropped almost 8% in New York. CATL also saw its stock drop. The company is also important in the EV supply chain and works with car makers like Volkswagen and Stellantis. The blacklist doesn’t put direct restrictions on these companies but makes American firms less likely to work with them.
This adds uncertainty in industries already facing global tensions. While experts say the effects won’t be big right away, putting CATL on the list is seen as a setback for China’s growth in the EV battery market. It also makes things harder for the global car supply chain. Both companies are working to clear up the misunderstanding and say they focus on non-military areas.
