According to a report, the United States government might require Tencent to sell its stakes in gaming companies

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The U.S. administration under Trump is considering whether to permit Tencent, a major Chinese company, to retain its stakes in several gaming firms. This discussion among high-level officials, outlined in Financial Times, was delayed because of scheduling conflicts. The topic is being reviewed before Trump's upcoming visit to China this month.

The Committee on Foreign Investment in the United States (CFIUS) had been examining the situation, initially started under the Biden administration, due to apprehensions about Tencent's access to data from numerous American gamers.

Tencent holds a 28% interest in Epic Games and fully owns companies like Riot and Turtle Rock. Its global investments include Supercell, Sumo Digital, Funcom, Klei Entertainment, and Yager, alongside minority stakes in companies like Ubisoft, Techland, Krafton, Remedy, and Paradox.

Concerns surfaced around Tencent's investments being a "significant intelligence collection source," prompting some officials from Biden's term to propose CFIUS mandate divestments, though the Treasury pursued enhanced data protections instead.

Supercell, which operates out of Finland, was specifically noted as a potential risk due to its extensive American user base.

The CFIUS panel's agencies couldn't reach consensus on the issue. Nonetheless, Tencent was subsequently blacklisted by the Pentagon for links to China's military, a claim that Tencent has contested.

Now under Trump's leadership, the matter gains renewed attention, reflecting a pattern of firm demands on companies, especially those under Chinese jurisdiction. The administration pressured TikTok to restructure its U.S. operations. Furthermore, Alibaba and BYD were added to the Pentagon's updated blacklist, though this was temporarily retracted shortly post-release without clear reasons, as per Reuters.

gamesindustry.biz
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