U.S. Blacklisting of Chinese Companies Spurs Industry Warnings and Potential Countermeasures

Experts commented on the erratic approach the U.S. government has taken in blacklisting Chinese companies, such as Tencent Holdings and Contemporary Amperex Technology Co Ltd, labeling them as "military companies." This inconsistent designation—alongside the removal of several other firms from the blacklist—has led to concerns that these moves lack validity and will prompt counteractions by China.

Tencent and CATL have each denied their military affiliations, calling the U.S. designations erroneous. Tu Xinquan, from the University of International Business and Economics, said that the U.S. actions seem increasingly unreasonable and motivated by a desire to stifle China's technological advancements at a low cost.

As the U.S. escalates its pressure on China, Tu believes the response from China may manifest as necessary countermeasures, such as restricting exports of crucial resources like rare earth minerals, which hold significance in military and technology sectors. Guo Jiakun, a foreign ministry spokesperson, underlined China’s adamant opposition to the U.S.' broad security classifications and various discriminatory practices aimed at Chinese businesses.

The "Section 1260H list" recently updated by the U.S. includes 134 Chinese companies, including well-known firms such as ChangXin Memory Technologies. Analysts suggest that successful Chinese businesses are now labeled threats to national security, highlighting a shift in the landscape of U.S.-China relations. Liu Ying, an analyst at Renmin University, warns that wrongful accusations could provoke comprehensive countermeasures, including arbitration and lawsuits from affected companies.

Responding to its designation, Tencent mentioned plans to discuss potential misunderstandings with the Pentagon and indicated it might pursue legal action if necessary. This situation unfolds amid a backdrop of previous lawsuits in which Chinese companies like Xiaomi have challenged similar blacklisting decisions in court, resulting in removals from the list. According to statistics from the World Trade Organization, the U.S. has faced a notable number of disputes, often losing against claims brought by China.