China-based technology giant Tencent was added to the blacklist published by the US Department of Defense. The company denies the allegations.
One of China’s largest technology and gaming companies Tencentwas blacklisted by the US Department of Defense on the grounds that he had connections with the Chinese military. Although this list does not prohibit US companies from doing business with blacklisted companies, it is intended to deter other companies from such collaborations. Tencent representative Danny Marti stated that this listing would not affect their business and that they would work with the Ministry of Defense to clarify the situation.
Tencent and Blacklist 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 be linked to the Chinese military. Tencent rejects these allegations and argues that the situation is just a misunderstanding.
Tencent has a huge 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 owns large shares in European-based developers such as Techland (Dying Light), Bloober Team (Silent Hill 2), 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 could 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 their 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 into the gaming world is being closely followed in the United States. What impact Tencent’s blacklisting will have on the gaming industry will become clear over time.