The US has added several Chinese tech companies, including gaming and social media giant Tencent and battery maker CATL, to a list of companies it says are working with China’s military.
The list serves as a warning to American companies and organizations about the risks of doing business with Chinese entities.
While the inclusion does not mean an immediate ban, it may increase pressure on the US Treasury Department to sanction the companies.
Tencent and CATL denied involvement with the Chinese military, while Beijing said the decision amounted to “unreasonable suppression of Chinese companies”.
The Department of Defense (DOD) list of Chinese military companies, officially known as the Section 1260H list, is updated annually and now includes 134 companies.
It is part of Washington’s approach to countering what it sees as Beijing’s efforts to increase its military might by using technology from Chinese companies, universities and research programs.
In response to the latest announcement, Tencent, which owns messaging app WeChat, said its inclusion on the list was “obviously a mistake”.
“We are not a military company or supplier. Unlike sanctions or export controls, this list has no impact on our business,” he said in a statement to the Reuters news agency.
CATL also called the appointment a mistake and said it “does not engage in any military activities.”
“US practices violate the principles of competition and international economic and trade rules it has always stood for, and undermine the confidence of foreign companies to invest and do business in the United States,” said Liu Pengyu, a spokesman for the Chinese embassy in Washington. .
The Pentagon has been under pressure from US lawmakers to add some of the companies, including CATL, to the list.
The push comes after US car giant Ford said it would invest $2bn (£1.6bn) in building a battery plant in Michigan. He said he plans to license the technology from CATL.
Ford did not immediately respond to the BBC’s request for comment.
The announcement comes as relations between the world’s two largest economies remain strained.
Meanwhile, President-elect Donald Trump, who has previously taken a tough stance on Beijing, is set to return to the White House this month.
Last year, the Pentagon was sued by drone maker DJI and Lidar maker Hesai Technologies over their inclusion on the list. Both remain on the updated list.
