The US Department of Defense has designated Chinese giant Tencent, a giant of the global video game industry, as a Chinese military company.
Tencent itself disputed the label, saying it was inaccurate and a “misconception.”
Tencent’s listing as a Chinese military company will not immediately impact its ability to conduct business in the United States, but it does increase the risk of future complications.
As reported by The Verge, drone company DJI has been blocked from importing into the United States since being added to the same list. But other companies have also been added and removed, including Chinese smartphone maker Xiaomi.
In 2020, President Trump issued an executive order prohibiting U.S. companies from investing in Chinese companies associated with the U.S. military. Trump is scheduled to return to power later this month.
“We are not a military company or supplier,” Tencent spokesman Danny Marty said. “Unlike sanctions or export controls, this list does not affect our business. Nevertheless, we will continue to work with the Department of Defense to address any misconceptions.”
Tencent’s influence in the global video game industry is enormous. The company owns League of Legends developer Riot Games, Dune: Awakening maker Funcom, British company Sumo Digital, and Pokemon Unite. It also owns several of its own companies, including Timi Studio, the maker of .
Additionally, Tencent owns a majority stake in Dying Light developer Techland, Rime studio Tequila Works, and mobile studios Miniclip and Supercell. Epic Games, the maker of Fortnite and Unreal Engine, is 35% owned by Tencent, which also holds prominent stakes in FromSoftware, Remedy, Krafton, Paradox, Frontier, Kadokawa, Marvelous, Bloober Team, and Netmarble.
And then there’s Ubisoft, another company in which Tencent owns a stake. The company is currently in talks with a Chinese company about a possible stock acquisition to stabilize the ailing Assassin’s Creed maker.
