Trump administration discusses pulling Chinese Tencent investments from US gaming due to security concerns

The Trump administration is currently weighing the possibility of allowing Tencent, a Chinese technology giant, to retain its investments in US-based video game companies, including Epic Games, known for Fortnite, and Riot Games, which developed League of Legends.

According to insights shared by multiple individuals with knowledge of the situation, discussions are ongoing to assess whether Tencent’s financial involvement presents any national security threats. These deliberations are taking place ahead of Trump’s upcoming visit to China in April.

Tencent has a diverse portfolio in the gaming industry. In the United States, the company fully owns Riot Games, while holding a significant 28% stake in Epic Games, responsible for the Unreal Engine and Fortnite.

Internationally, Tencent has made noteworthy investments in companies such as Larian, known for Baldur’s Gate 3, FromSoftware, recognized for the Souls series, and Krafton, the developer of PUBG. Additionally, Tencent has invested in Discord and has been identified as a key financial backer of the multiplayer shooter Highguard, which faced severe challenges.

The administration is also reportedly examining potential security threats related to Clash of Clans, developed by Supercell, a subsidiary of Tencent based in Finland, due to its substantial user base in the United States.

If the Trump administration decides to remove Tencent’s presence from the US gaming sector, the consequences could be significant.

Concerns about Tencent’s influence aren’t new and predate the Trump administration. The Biden administration had also investigated the company, focusing particularly on its connections to the Chinese military. A former official from that administration, Chris McGuire, noted that these gaming platforms might act as major sources for intelligence gathering.