The U.S. Defense Department said on Monday it has added Chinese tech giant Tencent Holdings and battery maker CATL to a list of companies it says work with China's military, in a move set to escalate U.

The U.S. Defense Department has added major Chinese technology companies including gaming and technology company Tencent, artificial intelligence firm SenseTime and the world’s biggest battery maker CATL to its list of companies it says have ties to China’s military.

The United States has labeled additional Chinese tech and social media firms as Beijing military companies, including multimedia firm Tencent and battery maker Contemporary Amperex Technology, better known as CATL.

The U.S. Defense Department has updated its list of Chinese companies allegedly linked to the People's Liberation Army (PLA). The most notable new names on the list are memory maker Changxin Memory Technologies (CXMT), battery maker CATL, and cloud and gaming giant Tencent, reports Nikkei.

The Pentagon recently added Tesla’s battery suppliers, Contemporary Amperex Technology, and Tencent to its list of companies with ties to the Chinese military. While the designation has minimal direct business impact,

The addition of Contemporary Amperex Technology Co., Limited (CATL) to a Chinese military-linked entities list has thrust Tesla’s reliance on the Chinese battery giant into the spotlight. While the designation currently imposes no direct sanctions,

The Pentagon has added five Chinese companies including Shenzhen-based tech giant Tencent and the world's biggest battery maker CATL to a list of mainland firms that Washington believes pose threats to US national security.