Feb 6 (Reuters) - Chinese venture capital firm IDG Capital is working to clear up confusion over its inclusion on a U.S. Department of Defense list of companies with ties to Chinese military, Bloomberg News reported on Tuesday.

IDG was not aware its name was included on the list, prompting the firm to seek clarification and redress, the report added.

The company did not immediately respond to a Reuters' request for comment.

Last week, more than a dozen Chinese companies to a list created by U.S. to highlight firms allegedly working with Beijing's military.

While being placed on the list doesn't involve immediate bans, it can be a blow to designated companies' reputations and represents a stark warning to U.S. entities and companies about the risks of conducting business with them while adding pressure on the Treasury Department to sanction them.

Firms including memory chip maker YMTC, artificial intelligence company Megvii, lidar maker Hesai Technology , and tech company NetPosa are on the list. (Reporting by Angela Christy in Bengaluru; Editing by Lincoln Feast.)