Tencent suggests there may have been a “miscommunication.”
- by Jim Norman
The US Department of Defense has officially included Chinese mega-giant Tencent into the federal register of firms considered to have links to the Chinese military (thanks, Bloomberg).
This addition to the list does not enforce any specific penalties on Tencent, although it could influence the company’s ability to conduct business in the US ultimately, with American firms being prohibited from engaging with any entities listed on the ‘blacklist.’
Bloomberg reports that Tencent shares have fallen by 7% since its official inclusion on the list, marking its largest decline since October 2024.
Tencent representative Danny Marti issued a statement to The Verge, where he labeled the designation as a “miscommunication”:
We are not a military firm or contractor. Unlike sanctions or export controls, this listing has no impact on our business. We are still able to collaborate with the Department of Defense to clarify any miscommunication.
Previously, companies have successfully been removed from the US government’s ‘blacklist’, which was initiated after then-President Donald Trump mandated a prohibition on US companies from investing in firms considered to have associations with the Chinese military. In 2021, the Department of Defense removed the Chinese technology giant Xiaomi from the federal register just months after its addition. Based on the aforementioned statement, it appears Tencent aims to achieve a similar outcome.
For context, Tencent is currently the world’s leading gaming company, owning studios such as League of Legends‘ Riot Games, Dying Light developer Techland, among others. The conglomerate also possesses significant shares in companies like Epic Games, FromSoftware, Activision Blizzard, and Ubisoft — where it is still in negotiations regarding a potential buyout.
Additionally, this is the corporation responsible for distributing the modified version of the Switch in China. Last November, Tencent announced that they would cease all online services in that region in 2026, with eShop purchases ending in March and all code redemptions concluding in May.
We will keep you updated if we receive any news on this story.
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Jim joined Nintendo Life in 2022 and, despite his belief that The Minish Cap is the best Zelda game and his steadfast affection for the Star Wars prequels (yes, really), he has consistently contributed news and features to the site ever since.