The US has added a number of Chinese know-how firms, together with gaming and social media large Tencent and battery maker CATL, to its record of companies working with China's navy.
The record serves to warn US firms and organizations concerning the dangers of doing enterprise with Chinese entities.
Although the inclusion doesn’t imply fast sanctions, it may enhance stress on the US Treasury Department to sanction the businesses.
Tencent and CATL have denied involvement with the Chinese navy, whereas Beijing mentioned the choice quantities to “unfair repression of Chinese companies.”
The Department of Defense (DOD)'s record of Chinese navy firms, formally often known as the Section 1260H record, is up to date yearly and now contains 134 firms.
It is a part of Washington's method to counter Beijing's efforts to extend its navy energy by utilizing know-how from Chinese firms, universities and analysis applications.
In response to the newest announcement, Tencent, which owns messaging app WeChat, mentioned its inclusion on the record was “clearly a mistake.”
“We are not a military company or supplier. Unlike sanctions or export controls, this listing has no impact on our business,” it mentioned in an announcement to information company Reuters.
CATL additionally referred to as the designation a mistake and mentioned it’s “not involved in any military-related activities.”
Liu Pengyu, a spokesman for the Chinese Embassy in Washington, mentioned, “The US's practices violate the market competition principles and international economic and trade rules it has always advocated, and undermine foreign companies' confidence in investing and operating in the United States. Does.” ,
The Pentagon was below stress from US lawmakers so as to add some firms, together with CATL, to the record.
The stress comes as US carmaking large Ford mentioned it could make investments $2bn (£1.6bn) to construct a battery plant in Michigan. It has mentioned it plans to license the know-how from CATL.
Ford didn’t instantly reply to the BBC's request for remark.
This announcement has been made at a time when relations between the world's two largest economies stay tense.
Meanwhile, newly elected President Donald Trump, who has beforehand taken a troublesome stance towards Beijing, is scheduled to return to the White House this month.
Last 12 months, drone maker DJI and lidar-maker Hesai Technologies sued the Pentagon over their inclusion on the record. Both of them stay within the up to date record.
With inputs from BBC
