The US has blacklisted Tencent Holdings and Contemporary Amperex Technology for alleged links to the Chinese military, targeting the world’s biggest gaming publisher and top electric-vehicle battery maker in a surprise move weeks before President-elect Donald Trump takes office.
CATL, a major supplier to Tesla, joined Tencent on a federal register of entities deemed to have ties with the People’s Liberation Army.
Both companies protested their inclusion as a mistake, saying they have no ties with the military.
Tencent’s stock slid more than 7 per cent in Hong Kong, notching its biggest intraday drop since October. CATL’s shares fell more than 5 per cent, also their biggest fall in about three months.
The blacklisting threatens to further escalate tensions between the world’s two largest economies.
