The U.S. Department of Defense has added dozens of Chinese companies, including gaming and technology giant Tencent, artificial intelligence firm SenseTime, and the world’s largest battery manufacturer CATL, to its list of companies it alleges have ties to China’s military.
In recent years, Washington has intensified efforts to limit the sharing of advanced technologies such as semiconductors and artificial intelligence, citing national security concerns.
The Defense Department’s “Chinese Military Companies” (CMC) list is updated annually and now includes 134 entities following the latest revision.
Under the National Defense Authorization Act of 2024, the Department of Defense is prohibited from engaging with companies on this list starting in June 2026.
Tencent, the world’s largest video gaming company and operator of China’s popular WeChat messaging platform, saw its Hong Kong-traded shares drop 7.3% on Tuesday.
The company expressed strong objections to its inclusion on the list, stating it would “initiate a reconsideration process to correct this mistake.”
Tencent also announced plans to engage with the U.S. Defense Department and, if necessary, pursue legal measures to remove itself from the list.
Companies Push Back Against Designation
“As the company is neither a Chinese military company nor a military-civil fusion contributor to the Chinese defense industrial base, it believes that its inclusion in the CMC List is a mistake,” Tencent stated in a filing to the Hong Kong Stock Exchange.

Tencent clarified that being on the CMC list does not equate to sanctions or export control measures. “Inclusion in the CMC List relates only to U.S. defense procurement, which does not affect the business of the Group,” the company added.
Battery manufacturer CATL issued a statement on its website asserting that it has “never engaged in any military-related business or activities.” The company emphasized that the designation would not adversely impact its operations.
Like Tencent, CATL described its inclusion on the list as a “mistake” and announced plans to engage with the Pentagon to resolve the issue. The company’s stock fell 2.84% in Shenzhen.
AI firm SenseTime also rejected its designation, stating that it had “no factual basis.” In its statement, the company expressed firm disagreement with the decision, noting that it has “no material impact on our global operations.”
“SenseTime remains firmly committed to working collaboratively with the relevant stakeholders to address this matter and to safeguarding the interests of the company and our shareholders,” the company said.
China Calls for Reversal
During a daily press briefing, Chinese Ministry of Foreign Affairs spokesperson Guo Jiakun called on the U.S. to “immediately correct its wrong practices and lift the illegal unilateral sanctions and long-arm jurisdiction on Chinese companies.”
Guo further criticized the U.S., stating, “China consistently and firmly opposes the U.S. overstretching the concept of national security, creating discriminatory lists under various pretexts, and unwarrantedly suppressing Chinese companies, hindering China’s high-quality development.”
The affected companies continue to contest the designations while navigating the broader geopolitical tensions between the two nations.