Tencent Denies Military Ties After US Government Concerns

Chinese gaming giant Tencent, known for owning Riot Games and developing popular titles like League of Legends, is currently under scrutiny from the US Government due to alleged ties to the Chinese military. The Pentagon has included Tencent on a list that warns US businesses against engagement, potentially jeopardizing future Pentagon contracts. In response, Tencent denied any military affiliations and intends to engage with the Department of Defense to clarify any misunderstandings. The company's stock saw a decline of approximately 7% following the announcement, highlighting the seriousness of the allegations. Furthermore, Tencent is considering legal action if discussions with the Department of Defense do not yield the desired outcome.

The allegations claim that Tencent may have links to the Chinese military, prompting the US Government to place it on a watch list of companies that could risk US partnerships and Pentagon contracts.

Tencent is one of the largest gaming companies in the world and has a significant influence across various sectors, including investments in Epic Games and Activision Blizzard. Recently, Tencent was rumored to be considering acquiring Ubisoft, a move that could further solidify its presence in the gaming industry. Besides League of Legends, Tencent has been involved in multiple high-profile gaming endeavors, which makes the unfolding situation particularly critical for the gaming landscape.