The US has added several Chinese technology companies, including gaming and social media giant Tencent and battery maker CATL, to a list of businesses it says have worked with China's military. are
The list serves as a warning to US companies and organizations about the risks of doing business with Chinese entities.
While inclusion does not mean an immediate ban, it could put pressure on the US Treasury Department to approve the firms.
Tencent and CATL have denied involvement with the Chinese military, while Beijing said the decision amounted to "unreasonable pressure on Chinese companies".
The Defense Department's list of Chinese military companies, formally known as the Section 1260H list, is updated annually and now includes 134 firms.
It is part of Washington's approach in response to Beijing's efforts to increase its military power by using technology from Chinese firms, universities and research programs.
In response to the latest announcement, Tencent, which owns messaging app WeChat, said its inclusion on the list was "clearly a mistake".
"We are not a military company or supplier. Unlike sanctions or export controls, this list has no impact on our business," a company spokesperson told the BBC.
CATL also called the designation a mistake and said it was "not engaged in any military-related activities."
"The actions of the United States violate the principles of market competition and the international economic and trade principles that it has always advocated, and foreign companies' investment in the United States," said Liu Pengyu, a spokesman for the Chinese embassy in Washington. It undermines the confidence to work and work." .
The Pentagon came under pressure from US lawmakers to add some firms, including CATL, to the list.
The push comes as US carmaker Ford said it would invest $2bn (£1.6bn) to build a battery plant in Michigan. It has said it plans to license the technology from CATL.
Ford did not immediately respond to a BBC request for comment.
The announcement comes at a time when relations between the world's two largest economies are strained.
Meanwhile, President-elect Donald Trump, who has previously taken a tough stance against Beijing, is set to return to the White House this month.
The Pentagon was sued last year by drone maker DJI and lidar maker Hesai Technologies over being added to the list. Both of them are in the latest list.
Shares of Tencent were trading about 7% lower in Hong Kong on Tuesday. CATL was down about 4%.