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U.S. Department of Defense Designates Tencent a ‘Chinese Military Company’

U.S. government's designation of Riot Games and WeChat owner could cause complications for Tencent as it does business in the United States.

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James Fudge

Chinese conglomerate Tencent Holdings has been designated by the U.S. Department of Defense (DoD) as a “Chinese military company.” The notice of this new designation by the Pentagon was published in the Federal Register on Tuesday (PDF), making it official. This designation does not come with any sanctions or bans but it puts Tencent—and its various subsidiaries—in a tough position where it might come under scrutiny when conducting business in the United States. Being added to the list doesn’t mean that Tencent will remain there forever either—the company could lobby the government to change its mind on the designation.

Tencent owns the popular Chinese language multi-purpose messaging app WeChat and is also the owner of Riot Games—the makers of League of Legends, TeamFight Tactics, and Valorant. In addition to owning Riot, Tencent runs various entertainment operations in California and has minor investments in other U.S.-based game companies such as Epic Games, Activision Blizzard, and many others.

As The Esports Advocate has noted in past reporting, the U.S. government’s adversarial relationship with the Chinese government is likely to lead to some actions against game companies that have close ties to Chinese companies, though in the case of its ongoing war against short form video platform TikTok, the U.S. government has (at least in the past) failed to prove a definitive link between the platform and the Chinese government in the federal courts.

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James Fudge

With a career spanning over two decades in the esports and gaming journalism landscape, James Fudge stands as a seasoned veteran and a pivotal figure in the evolution of esports media. His journey began in 1997 at Game-Wire / Avault, where he curated gaming and community news, laying the groundwork for his expertise in the field. In his more recent roles, James cemented his status as an authority in the esports business sphere as Senior Editor Esports at Sports Business Journal and The Esports Observer between 2018 and 2021.

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