Tencent added to US government blacklist, claims it is a "misunderstanding"
Tencent, the Chinese gaming giant, has been added to the US government's blacklist of companies believed to have ties to the Chinese military, though the company denies claims of its suspected affiliation.
The details:
As Bloomberg reported late last week, the US Department of Defense has added Tencent, along with battery manufacturer CATL, to its "blacklist" of companies it believes are directly affiliated with the Chinese military. The blacklist, which stems from a 2020 executive order issued by the Trump administration, imposes no official sanctions but can make doing business in the country more difficult.
Tencent has since responded to the situation in a statement to The Verge, claiming that it has no ties to the military and intends to work with the US government to clear up any "misunderstanding". “We are not a military company or supplier,” Tencent spokesperson Danny Marti said. “Unlike sanctions or export controls, this listing has no impact on our business. We will nonetheless work with the Department of Defense to address any misunderstanding.”
The blacklist, which includes a number of Chinese tech, vehicle, and other manufacturers, has been revised several times, with mobile device maker Xiaomi being removed just a few months after its initial addition in 2021. However, drone manufacturer DJI sued the Department of Defense in 2022, claiming that, while the list does not impose sanctions, it portrays companies as a "national security threat" and has resulted in "lost business deals."
Following the report, Tencent's share price fell by up to 7%. The company is one of the largest in the industry, owning studios like Riot Games and holding significant stakes in Activision Blizzard, Epic Games, Ubisoft, and hundreds more.
