Currently China has become an exponent of the video game industry, this has been reflected thanks to the arrival of many mobile releases, some MOBAs and the new trend of creating AAA titles, the clearest example was Black Myth: Wukong, launched in 2024. Within this market we have Tencent, a company that is practically a giant in the medium, although there are those who understand that its field is directed towards other horizons.
The US Department of Defense has officially classified the company as a “Chinese military company,” according to reports. This designation, although it does not imply immediate sanctions, could hinder its commercial relations with US entities, dissuading them from collaborating with the corporation.
Following this decision, Tencent shares experienced a 7% drop, their worst performance since October 2024. Despite this, company spokesperson Danny Martí issued a statement, calling the situation a “misunderstanding” and ensuring that they have no military ties: “We will work with the Department of Defense to resolve any confusion,” Martí stated.
Precedent suggests that this designation is not necessarily final. In 2021, the Department of Defense removed Xiaomi from the same list after successful negotiations. The company, which owns studios such as Riot Games and Techland, as well as significant stakes in Epic Games and Activision Blizzard, would seek a similar outcome to protect its vast business network in the video game industry.
The measure arises in a context of economic and political tensions between the United States and Asia, more so due to the issue of seeking to ban TikTok in the country of opportunity. So conferences between companies will have to be held, so we will have to wait for the verdict that we want to reach.
Via: NL
