Tencent Added to US Blacklist
Tencent, one of China’s largest technology and gaming companies, has been blacklisted by the US Department of Defense over its links to the Chinese military. While the list does not prohibit US companies from doing business with the blacklisted companies, it is intended to deter other companies from doing so. Tencent representative Danny Marti said that the listing will not affect their business and that they will work with the Department of Defense to clarify the situation.
Tencent and Blacklisting Allegations
The US decision to blacklist Tencent is based on an executive order issued by then-President Donald Trump in 2020. The order prohibits US investors from investing in companies thought to have ties to the Chinese military. Tencent denies these allegations and claims that the situation is a misunderstanding.
Tencent has a major influence in the gaming world. The company owns many game studios such as Riot Games (League of Legends), Grinding Gear Games (Path of Exile) and Sumo Group. It also has large shares in European-based developers such as Techland (Dying Light), Bloober Team (Silent Hill 2) and FromSoftware (Elden Ring). This influence of Tencent makes the news of being blacklisted even more remarkable.
Although being blacklisted does not mean a direct sanction for Tencent, it can negatively affect the company’s international collaborations and reputation. Hesitations may arise especially in agreements made with US-based investors and companies. However, Tencent states that this situation will not affect its business and that they will work to refute the allegations.
This decision comes after Tencent’s recent attempts to acquire famous studios such as Ubisoft. The company’s expansion in the gaming world is closely followed by the US. The impact of Tencent’s blacklisting on the gaming sector will become clear over time.
