The United States Claims that the Tech Giant Tencent Collaborates with the Chinese Military.

The United States has added several Chinese tech companies, including gaming and social media giant Tencent and battery manufacturer CATL, to a list of firms it claims are connected to China’s military. This list acts as a warning to American businesses and organizations about the risks of collaborating with Chinese entities. While being added to the list doesn’t immediately result in a ban, it can pressure the US Treasury Department to impose sanctions on these companies.

Both Tencent and CATL have denied any links to the Chinese military, while Beijing criticized the move as “unreasonable suppression” of Chinese businesses. The Department of Defense’s list of Chinese military companies, formally known as the Section 1260H list, is updated annually and now includes 134 companies. This is part of Washington’s strategy to counter China’s efforts to expand its military power using technology from Chinese firms, universities, and research programs.

Tencent, which owns the messaging app WeChat, called its inclusion on the list “a clear mistake,” emphasizing that it is not a military company. CATL also rejected the designation, stating it does not engage in military activities. A spokesperson for the Chinese embassy in Washington said the US’s actions violate market competition principles and international trade rules, eroding foreign companies’ confidence in operating in the US.

The Pentagon faced pressure from US lawmakers to add firms like CATL to the list, particularly after Ford announced plans to invest $2 billion in a battery plant in Michigan, where it intends to license technology from CATL. The US carmaker did not respond immediately to BBC’s request for comment.

The move comes amid ongoing tensions between the world’s two largest economies, with President-elect Donald Trump, known for his hard stance on China, set to return to the White House. Last year, drone maker DJI and Lidar company Hesai Technologies sued the Pentagon over their inclusion on the list, with both still appearing on the updated version.