By Brian Swint

The Department of Defense updated its list of companies working with the Chinese military on Monday. Technology company Tencent and a Tesla battery supplier were on it.

The DOD has published its list of so-called Chinese military companies annually since 2021 as part of its "effort in highlighting and countering the PRC's Military-Civil Fusion strategy." According to the DOD, the list "serves to begin identifying, among other things, Military-Civil Fusion contributors operating directly or indirectly in the United States." While the list does not initiate any action against the 153 Chinese firms included, it does discourage other companies from doing business with them.

The world's biggest supplier of batteries for electric vehicles also made the list: Shares of Contemporary Amperex Technology, better known as CATL, fell more than 2% in Chinese trading. CATL put out a statement saying that it has never engaged in military activity and that the designation was an error.

Tencent, which runs social media and ecommerce platforms, said its inclusion on the list "is clearly a mistake." Its American depositary receipts traded down 0.7% when the market opened. In Hong Kong, the shares dropped more than 7%.

Huawei, the tech firm that has long been under U.S. scrutiny, and state oil company CNOOC were also included on the list.

Write to Brian Swint at brian.swint@barrons.com

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January 07, 2025 12:32 ET (17:32 GMT)

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