(Reuters) – The Trump administration is considering adding Alibaba Group Holding Ltd and Tencent Holdings Ltd to a black list of Chinese companies that are allegedly owned or controlled by the Chinese military, two people familiar with the matter told Reuters.
The news was first released by the Wall Street Journal, which said the plan was still in deliberation and may not be approved while agencies debate its impact on the markets. (on.wsj.com/3nngMYB)
Alibaba and Tencent shares fell about 3% in morning trading on the Hong Kong Stock Exchange. Alibaba shares listed in the US closed down just over 5% with the news on Wednesday, but were practically stable after the close of trading.
On Tuesday, U.S. President Donald Trump signed an executive order banning transactions with eight Chinese software applications, including Ant Group’s mobile payment app Alipay, increasing tensions with Beijing two weeks before President-elect Joe Biden take over.
Alibaba and Tencent did not immediately respond to requests for comment from Reuters.
Reporting by Munsif Vengattil in Bengaluru and Andrea Shalal and Alexandra Alper in Washington; Editing by Shounak Dasgupta and Edwina Gibbs