The United States has added several major Chinese companies, including tech giant Tencent and battery maker CATL, to a list of firms it says are working with the Chinese military.
The move is part of Washington's efforts to deter any security risks from Chinese businesses.
The Pentagon's updated list, known as the "Section 1260H list," now includes 134 companies.
Among them are Tencent, known for its popular social media app WeChat, battery maker CATL, chipmaker Changxin Memory Technologies, wireless communications firm Quectel and drone maker Autel Robotics.
Tencent's US-listed shares fell 8% following the announcement.
The company has insisted it has no military ties to the Chinese military.
CATL and Quectel have also denied any links to the Chinese military.
The move is among a series of moves by the US in recent years as tensions between the two countries continue to rise.
Although included in the list, the companies involved are not immediately banned from continuing to do business, but it serves as a warning and risk to American firms and could potentially lead to further sanctions in the future.
