(Reuters) – The Trump administration is considering adding Alibaba Group Holding Ltd and Tencent Holdings Ltd to a blacklist of Chinese companies allegedly owned or controlled by the Chinese military, two people familiar with the report told Reuters. subject.
The news was first published by the Wall Street Journal, which said the plan was still under deliberation and might not happen because agencies are debating its impact on markets. (on.wsj.com/3nngMYB)
Shares of Alibaba and Tencent fell about 3% in morning trading on the Hong Kong Stock Exchange. Shares in Alibaba’s U.S. stock closed just over 5% on Wednesday, but were virtually flat after trading.
On Tuesday, U.S. President Donald Trump signed an executive order banning transactions with eight Chinese software applications, including Ant Group’s Alipay mobile payment application, which raised tensions with Beijing two weeks before the inauguration of President-elect Joe Biden.
Alibaba and Tencent did not immediately respond to Reuters’ requests for comment.
Reports of Munsif Vengattil in Bengaluru and Andrea Shalal and Alexandra Alper in Washington; Edited by Shounak Dasgupta and Edwina Gibbs