Chinese internet giant Tencent’s shares slumped sharply on Tuesday after the company was added to a Pentagon blacklist for its alleged links with the Chinese military, prompting criticism from authorities in Beijing and denial by the company.

Tencent and Contemporary Amperex Technology Co. Ltd. (CATL) have been added to a US blacklist for alleged ties to China’s military.

NEW YORK - The United States has blacklisted Tencent Holdings and Contemporary Amperex Technology Co. Ltd. (CATL) for alleged links to the Chinese military, targeting the world’s biggest gaming publisher and top electric-vehicle battery maker in a surprise move weeks before Donald Trump takes office.

The US blacklisted Tencent and CATL for alleged links to the Chinese military, impacting major gaming and EV sectors. Both companies denied military ties.

The Defense Department added video game maker Tencent Holdings to its "blacklist" of companies doing business in the U.S. while allegedly aiding the Chinese military.

The US’s latest move to expand its list of Chinese military companies risks doing more than tanking the shares of some of its most valuable companies: It also threatens to accelerate decoupling of the world’s biggest economies.

The US government's move to add Tencent Holdings, China's most valuable company, to its list of Chinese military firms has raised concerns about further bifurcation in the technology spheres of the world's two largest economies.