(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 matter said to Reuters.
The news was first reported by the Wall Street Journal, which said the plan was still under consideration and may not go ahead as agencies debate its impact on the markets. (on.wsj.com/3nngMYB)
Alibaba and Tencent shares both fell about 3% in morning trading on the Hong Kong Stock Exchange. Alibaba’s US-listed shares closed just over 5% on the news on Wednesday, but were more or less flat in after-hours trading.
On Tuesday, US President Donald Trump signed an executive order to ban transactions with eight Chinese software applications, including Ant Group’s Alipay mobile payments app, escalating tensions with Beijing two weeks before President-elect Joe Biden took office.
Alibaba and Tencent did not immediately respond to Reuters requests for comment.
Reporting by Munsif Vengattil in Bengaluru, and Andrea Shalal and Alexandra Alper in Washington; Editing by Shounak Dasgupta and Edwina Gibbs