The US Department of Defense has added Chinese tech companies Tencent, a social media and gaming giant, and CATL, the world’s largest battery maker, to a list of firms that it alleges work with China’s military. Inclusion on the Pentagon list does not result in any immediate sanctions, but it could affect the reputations of the companies named and hinder their commercial progress, particularly if they want to do business in the United States. Shares in Tencent, which owns Chinese super-app WeChat, were 6.5% lower in Hong Kong on Tuesday, while CATL’s Shenzhen-listed shares lost more than 3%. They join dozens of other alleged Chinese military companies on the list that the Defense Department alleges operate directly or indirectly in the US, according to a notice posted to the Federal Register on Monday. The Pentagon has said the so-called 1260H list, which is updated annually, is “an important continuing effort” in highlighting and countering China’s “military-civil fusion” strategy, a goal to develop the most technologically advanced military in the world by eliminating barriers between the country’s civilian research and commercial sectors and its armed forces. In a statement to CNN, Tencent called its inclusion on the list “a mistake.”

Full report : US adds Tencent, CATL to list of Chinese firms allegedly aiding Beijing’s military.