Obscure Pentagon Watchlist Offers Blueprint for China Sanctions
- List of defense companies may be used as tool under Trump
- Tencent, CATL shares tanked after inclusion on watch list
The Tencent Holdings Ltd. offices in Shanghai, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Donald Trump’s return to power has investors sweating over which Chinese companies will be targeted by US sanctions or trade restrictions. A long-ignored Pentagon watch list is now drawing the attention of traders seeking clues about who might be next.
The appearance of several prominent Chinese firms on the list of companies the US believes have ties to China’s military triggered a stock selloff this month, including Tencent Holdings Ltd. and Contemporary Amperex Technology Co. Ltd., which makes batteries for Elon Musk’s Tesla as well as other automakers.