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 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 listed Chinese firms Tencent and CATL among companies allegedly linked to China's military, escalating tensions between the U.S. and China. Both companies deny the claims,