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The United States Department of Defense has named Tencent, one of the world’s largest gaming companies and the parent of Riot Games, to a list of businesses it claims are associated with the Chinese military. This list, initially established in 2020 during Donald Trump’s presidency, restricts US investments in companies with alleged ties to China’s military.
The addition of Tencent to the blacklist was revealed on January 7, alongside battery manufacturer CATL. The move stems from an executive order that aims to limit US involvement with Chinese firms perceived as security risks. While the list currently imposes no sanctions, it signals heightened scrutiny of Tencent’s global operations.
In a statement to The Verge, Danny Marti, a representative for Tencent, clarified:
“Unlike sanctions or export controls, this listing has no impact on our business. We will nonetheless work with the Department of Defense to address any misunderstanding.”
Tencent has expressed a willingness to cooperate with US authorities to clarify its position and reduce tensions.
Tencent’s influence in the gaming industry is extensive. The company owns Riot Games, the developer of League of Legends, and TiMi Studio Group, known for titles like Honor of Kings. Tencent also holds stakes in other major developers, including Epic Games (Fortnite, Unreal), FromSoftware (Elden Ring), and Techland (Dying Light). It has a majority share in Fatshark, the studio behind Warhammer 40,000: Darktide.
In addition to these ventures, Tencent has drawn attention for its stake in Ubisoft, the publisher behind Assassin’s Creed. With financial pressure mounting at Ubisoft, some speculate that Tencent could attempt a full buyout if the upcoming Assassin’s Creed: Shadows underperforms.
Although Tencent has stated that the blacklist currently has no direct impact on its operations, past examples suggest the potential for more severe outcomes. Companies like TikTok, which have also faced accusations of Chinese military links, encountered restrictions and bans in several countries, including the US.
If the US government enforces stricter sanctions on Tencent, the ripple effects could disrupt the gaming industry. Popular titles like League of Legends and Fortnite might face regulatory hurdles, and Tencent’s investments in Western gaming companies could be jeopardized.