Contemporary Amperex Technology and Tencent Holdings are among several Chinese businesses to deny alleged links to China's military after the US defence department designated them as “Chinese military companies.”

“This is a mistake,” Ningde-based battery titan CATL said, adding that “the company is not involved in any military-related activities.” Internet behemoth Tencent told Yicai that “being included on this list is clearly a mistake. We are neither a military company nor a military supplier.”

Shenzhen-based Tencent also said the CMC designation does not impact its business, and pledged to work with the US authorities to resolve the misunderstanding.

Tencent’s shares [HKG: 0700] slumped 7.2 percent to close at HKD379.60 (USD48.84) apiece in Hong Kong today, while CATL [SHE: 300750] lost 2.8 percent to end at CNY249.45 (USD34.06) in Shenzhen.

The US Pentagon yesterday released the updated CMC list, formally mandated under US law as the Section 1260H list, adding 134 firms, also including BGI Group, CloudWalk Technology, Huawei Technologies, Megvii, Semiconductor Manufacturing International Corporation, and Quectel, while removing Megvii, China Railway Construction, and four others.

CloudWalk, which develops facial recognition software, also rejected the allegations and expressed its strong dissatisfaction. Its inclusion on the list will have no substantial impact on business, the Guangzhou-based company said.

Meanwhile, Quectel, an Internet of Things solutions provider, also denied working with military entities and requested the Pentagon to reconsider its decision.

Entities on the CMC list may face bans such as prohibitions on signing, renewing, or extending contracts for goods, services, or technology with the US defense department. Additionally, cooperation between other entities that trade with the Pentagon and those firms on the list will be restricted. Normal business partnerships will also be affected to some extent, according to the Pentagon.

（Picture: Veer）