Tencent Joins Companies Blacklisted By US Over Security Concerns

Expert Verified By

Ubisoft-Tencent Deal May Hit Roadblock!!

Story Highlight
  • The US government blacklisted major Chinese companies like Tencent and CATL for allegedly aiding the Chinese Military.
  • Tencent’s spokesperson has denied such activities and stated that they are not a military company or supplier.
  • The blacklist has caused massive damage to Tencent, causing their shares to drop by almost 10% in Hong Kong.

The US Department of Defense creates an annual list of Chinese companies that pose a threat to US security under section 1260H. In an updated list posted on 7th January 2025, Chinese gaming giant Tencent was added to the list, alleging it was a potential threat to the US.

CATL, one of the biggest battery manufacturers, was also added to the list. According to the US, both these companies were allegedly aiding the Chinese military. The list doesn’t mean an outright ban, but it has caused massive damage to the holding company.

Why it matters: Tencent is one of the biggest names in the gaming industry and owns shares in over 600 companies, including notable names like Ubisoft, Riot Games, FromSoft, Techland, and more.

league of legends
League Of Legends Is One Of Many Multiplayer Titles Under Tencent

In a statement to BBC from Tencent’s spokesperson, the following was said:

We are not a military company or supplier. Unlike sanctions or export controls, this listing has no impact on our business.

The spokesperson also said that they’ll work with the US Department of Defense to clear out the misunderstanding. A spokesperson from CATL had a similar statement, saying that the company’s inclusion in the list was clearly a mistake.

Nevertheless, this addition has already caused some serious damage to Tencent as their shares have now plummeted by 8% in Hong Kong after this blacklist. That said, this inclusion will potentially cause the US national treasury to sanction these names.

Chinese phone company Xiaomi was previously also blacklisted but was removed later on after the company sued the US government. The hearing judge in the case called the US decision to blacklist Xiaomi deeply flawed.

Tencent could potentially sue the US government in order to lift its blacklist since it will affect the gaming industry heavily.

With WeChat’s ban on transactions, free-to-play games like PUBG, Path of Exile, and other titles could potentially follow the same suit, which would heavily affect the company since microtransactions are what help fund these games.

The share plummet could also affect Tencent’s rumoured plans to buy Ubisoft, which the French publisher previously confirmed true. What do you think about this? Let us know your thoughts about this in the comments or on Tech4Gamers’s Official Forum.

Was our article helpful? 👨‍💻

Thank you! Please share your positive feedback. 🔋

How could we improve this post? Please Help us. 😔

Gear Up For Latest News

Get exclusive gaming & tech news before it drops. Sign up today!

Join Our Community

Still having issues? Join the Tech4Gamers Forum for expert help and community support!

Latest News

Join Our Community

104,000FansLike
32,122FollowersFollow

Trending

Tomb Raider Developer Crystal Dynamics Is The Latest Studio To Face Layoffs

Crystal Dynamics, the developer studio behind Tomb Raider games, has just announced that it is cutting its workforce.

CD Projekt Red: Single-Player Games Like The Witcher & Cyberpunk Are Here to Stay

The co-CEO of CD Projekt Red believes that the demand for single-player games like The Witcher 4 and Cyberpunk Sequel will not disappear.

5 Out of 8 Major AAA Japanese Studios Already Hit Record-Breaking Share Prices This Year

Japan's AAA presence in the gaming industry has gotten stronger, as 5 of the 8 companies in the region reached record-breaking share prices.

Indiana Jones and The Great Circle Tops PlayStation Pre-Orders

With Indiana Jones and the Great Circle now available to pre-order for the PS5, the game is topping the PlayStation charts.

Rocksteady’s Next Batman Game Being Developed Using Unreal Engine 5

Rocksteady's latest job openings confirm that the team is working with Unreal Engine 5 for its next AAA project.