"The Trump administration is weighing whether to force Chinese tech conglomerate Tencent to abandon its investment in U.S. gaming companies, the Financial Times reports. That would include divesting major stakes in Fortnite maker Epic Games and League of Legends maker Riot Games. The threats leaked from the White House come ahead of negotiations with Xi Jinping in China next month."
"Tencent has been under review by the Treasury-led panel Cfius for years over concerns about the amount of user data its stakes in gaming companies might give it access to. Trump threatened to ban the social media platform WeChat, which Tencent owns, back near the end of his first term. One of the first things his administration did in its second term was designate the conglomerate a Chinese military company."
"It's unclear if this latest debate within the White House is just more bluster or something Trump is committed to seeing through. The administration previously dragged its feet on Congressional legislation requiring it to shutdown TikTok in the United States. Instead, it engineered a deal to have Chinese tech firm ByteDance sell a controlling share in the short form video platform to a consortium of American-backed investors led by Oracle."
The Trump administration is evaluating options to compel Tencent to abandon its investments in U.S. gaming firms, including its 28 percent stake in Epic Games and ownership of Riot Games. The move stems from concerns about data access and follows the administration's January 2025 designation of Tencent as a Chinese military company. Tencent's holdings span multiple gaming companies globally, including Supercell and Discord. The Treasury-led Cfius panel has reviewed Tencent for years regarding potential user data risks. These threats emerge ahead of negotiations with China and represent escalating pressure during trade discussions. The administration's commitment to enforcement remains uncertain, given its previous approach to TikTok legislation.
#tencent-divestment #us-china-trade-tensions #gaming-industry-regulation #national-security-concerns #user-data-protection
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