The United States Department of Defense has expanded its “Chinese Military Companies” (CMC) list by adding 134 firms, including Tencent, SenseTime, and battery manufacturer CATL.

Shares of Chinese technology giant Tencent fell 7.3% in Hong Kong following the announcement.

Tencent called its inclusion in the CMC list a mistake, stating it is not a Chinese military entity or linked to military-civil fusion.

CATL, recognized as the world’s largest battery maker, called the designation a “mistake.” The company asserted it has no military-related activities.

AI firm SenseTime challenged its inclusion, arguing the decision lacks a factual basis.

A ban on Department of Defense dealings is set to take effect in June 2026 under the National Defense Authorization Act of 2024.

Recent Tencent developments