Shares of Tencent fall over 5% in Hong Kong after U.S. designates it as a Chinese military company

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Other Chinese companies added to the list included battery maker CATL, which is part of the supply chain for automakers like Ford and Tesla.

Tencent and CATL called the inclusion a "mistake, saying they are not a military company or engaged in any military related activities.says that the DoD will be prohibited from procuring goods or services directly from entities on the list in June 2026, and indirectly from June 2027.

In response to the decision, Tencent said in a statement that its inclusion on the list was "clearly a mistake." "We are not a military company or supplier. Unlike sanctions or export controls, this listing has no impact on our business," the company added. CATL also called the designation "a mistake" in a response, saying it "is not engaged in any military related activities."

The U.S. has taken aim at Chinese tech companies in its bid to restrict transfer of high-end technologies to China. Last year, itcompanies must apply for a license if they want to sell certain advanced computing semiconductors or related manufacturing equipment to China.

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