The US is planning to completely ban cars from China by 2030 at the latest. The Pentagon has already blacklisted battery giant CATL. The Chinese say it's a mistake.
The US Department of Defense has blacklisted Chinese battery manufacturer CATL, the world's largest supplier of batteries for electric vehicles. CATL, which has a 38 percent market share, has been added to the Pentagon's list of companies that allegedly cooperate with China's military.
The news immediately caused CATL's shares to fall on the stock market, the Financial Times reports.
– This is a mistake, CATL told the Financial Times in response to the decision.
In addition to CATL, Chinese social media giant Tencent has also been added to the list. Both companies saw their share prices fall following the announcement.
CATL supplies batteries to a wide range of electric car manufacturers, including Tesla and Volvo Cars.
The Pentagon says the blacklist is intended to shed light on China's strategy to integrate military and civilian activities. The list identifies companies that appear to be civilian entities but which, according to the US Department of Defense, have ties to the Chinese military.
Both CATL and Tencent deny the allegations.
"CATL is not involved in military-related activities," the battery company said, according to the Financial Times.
– We are open to responsible dialogue about our business activities and take questions about our operations seriously.
Initially, the blacklisting has no legal or economic consequences for CATL and the other companies.
But it is expected to make it more difficult for them to operate in the United States.
In addition to CATL and Tencent, semiconductor manufacturer Changxin Memory Technologies, drone manufacturer Autel Robotics, and IT equipment manufacturer Quectel Wireless have also been added to the list.
Starting next year, the Pentagon will no longer be allowed to purchase goods or services from companies that are on the blacklist or where these companies are part of the supply chain.
The battle for electric cars, especially Chinese ones, in the US has probably only just begun. The soon-to-be-former Biden administration is proposing that no Chinese software be allowed in new cars from 2027. And by 2030, Chinese cars will be completely banned in the country. Read more about it here .
