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

Tencent may be the biggest video game corporation in the world, but as of a Jan. 7, it’s also one of several Chinese firms to be labeled a “military company” by the United States Department of Defense. In a statement to investors, Tencent chairman Ma Huateng called the decision a “mistake,” but also doesn’t expect it to affect the business.

While the Chinese internet giant Tencent is best known for its super app WeChat, it’s also a major investor in U.S. tech companies and startups. Some of