Beijing on Tuesday accused Washington of "unjustified suppression" after the US Defence Department added tech giant Tencent and battery manufacturer CATL to a list of companies it says are affiliated with the military.

"China is always firmly opposed to the US side's generalisation of the concept of national security, the establishment of various discriminatory lists, the unreasonable suppression of Chinese enterprises and the curbing of China's high-quality development," Foreign Ministry spokesman Guo Jiakun told a regular press briefing.

"We urge the US side to immediately correct its wrong practices," Guo said, adding China would "take the necessary measures to resolutely protect the rights of Chinese companies".

The list also included chip maker Changxin Memory Technologies, Quectel Wireless, drone maker Autel Robotics, and China's largest shipping company Cosco Shipping Holdings, according to a document published on Monday.

Two entities owned by Chinese state-owned oil major China National Offshore Oil Corporation were also listed, CNOOC China Ltd and CNOOC International Trading.

The annually updated list of Chinese military companies, formally mandated under US law as the "Section 1260H list," designated 134 companies, according to a notice posted to the Federal Register.

While the designation does not involve immediate bans, it can be a blow to the reputations of affected companies and represents a stark warning to US entities and firms about the risks of conducting business with them.

It could also add pressure on the US Treasury Department to sanction the companies.

The Hong Kong-listed shares of Tencent fell as much as seven percent in early trade on Tuesday, while the US-traded shares of the company, which is also the parent of Chinese instant messaging app WeChat, fell eight percent in over-the-counter trading.

Tencent said in a statement that its inclusion on the list was "clearly a mistake."

It added: "We are not a military company or supplier. Unlike sanctions or export controls, this listing has no impact on our business."

CATL, the world's largest electric vehicle battery maker whose Shenzhen-listed shares dropped more than five percent, also called the designation a mistake, saying it "is not engaged in any military-related activities."

A Quectel spokesperson said the company "does not work with the military in any country and will ask the Pentagon to reconsider its designation, which clearly has been made in error." Quectel's shares fell nearly seven percent.

Cosco's HK-listed shares dropped more than four percent. (Agencies)
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Last updated: 2025-01-07 HKT 16:45