Tencent added to ‘Chinese military company’ blacklist in the U.S.

Tencent may be the biggest video game corporation in the world, but as of a Jan. 7, it’s also one of several Chinese firms to be labeled a “military company” by the United States Department of Defense.

In a statement to investors, Tencent chairman Ma Huateng called the decision a “mistake,” but also doesn’t expect it to affect the business.

Tencent currently operates TiMi Studio Group (Pokémon Unite) and LightSpeed Studios (PUBG Mobile) internally. It also owns third-party studios Riot Games (League of Legends) and Grinding Gear Games (Path of Exile) outright; is the majority investor in Techland (Dying Light) and Klei Entertainment (Don’t Starve); and holds shares in Epic Games (Fortnite), FromSoftware (Elden Ring), Ubisoft (Assassin’s Creed), Bloober Team (Silent Hill 2 remake), Remedy Entertainment (Alan Wake), Don’t Nod (Life is Strange), and Supercell (Clash Royale), among others.

“The Company intends to initiate a Reconsideration Process to correct this mistake,” said chairman Ma Huateng in Tencent’s message to its investors. “During the process, it will engage in discussions with the U.S. Department of Defense to resolve any misunderstanding, and if necessary, will undertake legal proceedings to remove the Company from the [Chinese Military Company] List.”

President-elect Donald Trump established the blacklist during his first term through an executive order prohibiting Americans from investing in so-called “Communist Chinese military companies.” Chinese drone manufacturer DJI claimed in an October 2024 lawsuit against the Department of Defense that it lost business deals in the U.S. and its employees were stigmatized after being added to the blacklist two years prior.

According to House of Representatives bill 6395, the designation of “Chinese military company” indicates that a business entity is “directly or indirectly owned, controlled, or beneficially owned by, or in an official or unofficial capacity acting as an agent of or on behalf of, the People’s Liberation Army or any other organization subordinate to the Central Military Commission of the Chinese Communist Party.”