Tencent Holdings says its inclusion on a list of firms that the Defense Department alleges work with China's military is a mistake. "We are not a military company or supplier," a spokesperson says. "Unlike sanctions or export controls, this listing has no impact on our business." The videogame and social-media company said it will work with the Defense Department to address any misunderstandings. Tencent ADRs fall 7.82% to $49.01.

The US Defense Department said Monday it had added Chinese tech giants, including gaming and social media leader Tencent Holding Ltd. and battery maker Contemporary Amperex Technology Co.,Ltd., to a list of firms it says work with China's military.

The list included new additions Tencent, CATL, chip maker Changxin Memory Technologies Inc (CXMT), Quectel Wireless Solutions Co.,Ltd., and drone-maker Autel Intelligent Technology Corp.,Ltd., according to a document published Monday.