The US Defense Department added Chinese tech giants including gaming and social media leader Tencent Holdings and battery maker CATL to a list of firms it says work with China's military. The list also included chip maker Changxin Memory Technologies, Quectel Wireless and drone maker Autel Robotics. The annually updated list of Chinese military companies, formally mandated under US law as the 'Section 1260H list,' designated 134 companies.
Tencent's Hong Kong-listed shares fell as much as 7 percent in early trade, while the US-traded shares of the company, which is also the parent of Chinese instant messaging app WeChat, fell 8 percent in over-the-counter trading. Tencent said in a statement that its inclusion on the list was 'clearly a mistake'. It added: 'We are not a military company or supplier. Unlike sanctions or export controls, this listing has no impact on our business.' CATL, the world's largest electric vehicle battery maker whose Shenzhen-listed shares dropped more than 5 percent, also called the designation a mistake, saying it 'is not engaged in any military-related activities'. A Quectel spokesperson said the company 'does not work with the military in any country and will ask the Pentagon to reconsider its designation, which clearly has been made in error'. Quectel's shares fell nearly 7 percent. The other companies and the Chinese embassy in Washington did not immediately respond to requests for comment