AGS NEWS – The US Department of Defense has added Chinese tech giant Tencent and battery manufacturer CATL to its list of companies allegedly linked to China’s military activities.

While inclusion on the Pentagon list does not impose immediate sanctions, it could harm the reputation of these companies and impact their business operations, especially in the United States.

Following the announcement, Tencent’s shares dropped 6.5% in Hong Kong, and CATL’s Shenzhen-listed shares fell by over 3%.

The companies join other Chinese firms accused of supporting China’s military directly or indirectly, according to a Federal Register notice.

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The Pentagon views the annual update of this list, known as the 1260H list, as part of efforts to counter China’s “military-civil fusion” strategy, which integrates civilian research and commercial sectors with military development.

Tencent dismissed its inclusion as a “mistake,” stating it is not a military supplier and that the listing would not affect its operations.

The company plans to engage with the Defense Department to resolve the issue.

Similarly, CATL, a major supplier of Tesla and Ford, denied involvement in military activities and called the designation an error.

The company said it would work with the Pentagon to address the matter and consider legal action if necessary.