ISTANBUL

Beijing on Tuesday decried the US move to expand Washington's list of entities allegedly tied to China’s military.

"We urge the US to immediately correct its wrong practices and lift illegal unilateral sanctions and long-arm jurisdiction on Chinese companies," Foreign Ministry spokesman Guo Jiakun told reporters in Beijing.

The US on Monday added leading Chinese companies such as Tencent Holdings, a social media and gaming powerhouse, and CATL, the world’s leading battery manufacturer, to expanded its list of entities allegedly tied to People's Liberation Army.

Washington's designation does not impose instant bans but could hurt the firms’ reputation. It serves as a warning to US businesses about the risks of working with them and could push the US Treasury to consider sanctions.

The Defense Department list identifies Chinese firms believed to operate directly or indirectly within the US while allegedly supporting Beijing’s military agenda. Updated annually, the list now includes 134 companies.

CATL plays a role in the battery supply chain for carmakers like Ford and Tesla.

Both Tencent and CATL deny any links to China’s military. Beijing blasted the decision as "unreasonable suppression of Chinese companies.”

Tencent calls US move a 'mistake'

Beijing said it has "always firmly opposed US' generalization of the concept of national security, the creation of discriminatory lists of various categories, the unreasonably suppression of Chinese enterprises, and the curbing of China's high-quality development."

"China will take all necessary measures to resolutely protect the legitimate rights and interests of Chinese enterprises and safeguard its legitimate rights to development," said Guo, the Foreign Ministry spokesman.

Tencent, one of the companies added to the list, called the designation a "mistake."

"We are not a military company or supplier. Unlike sanctions or export controls, this listing has no impact on our business. We will nonetheless work with the Department of Defense to address any misunderstanding," a company spokesperson said.

Ahead of incoming US President Donald Trump’s return to the White House on Jan. 20, the tech rivalry between Washington and Beijing is heating up.

Recently, Beijing announced plans to limit exports of technology essential for extracting minerals that are vital to the burgeoning global electric vehicle (EV) industry.

In December, the outgoing Biden administration implemented new export controls on US-made semiconductors, citing concerns that they could be repurposed by Beijing to develop next-generation weaponry and artificial intelligence (AI) systems.

The US Commerce Department said the restrictions aim to impede China's progress in advanced AI capabilities that could be utilized in military applications.

Additionally, the measures intend to weaken China's burgeoning semiconductor industry, which the US claims poses a threat to its national security and that of its allies.