Highlights
- U.S. officials are reviewing whether Tencent should divest stakes in major gaming companies.
- Holdings include Epic Games, Riot Games, and investments across global studios.
- The White House review is linked to national security concerns over access to U.S. player data.
The Trump government is debating whether Tencent should retain its stakes in major video game companies, according to a report by the Financial Times. The discussions are taking place ahead of a planned meeting between U.S. President, Donald Trump, and Chinese President, Xi Jinping, in Beijing from March 31 to April 2, 2026.
Officials at the White House have been examining Tencent’s investments in American and Finnish gaming companies. These holdings could pose a potential national security risk. The report indicated that senior officials have held internal meetings on whether to let the company to maintain those holdings.
Tencent Stakes in Epic Games, Riot Games Under Scrutiny
Tencent owns Riot Games, the Los Angeles-based developer of League of Legends and Valorant. It also holds a 28% stake in Epic Games, the creator of Fortnite and the Unreal Engine platform.
The company has investments across the global gaming sector, including studios such as Funcom, Klei Entertainment, Sumo Digital, and Yager. One of its largest deals came in 2016, when Tencent acquired a majority stake in Supercell, maker of Clash of Clans, for about $8.6 billion USD.
Tencent also holds minority stakes in several game development companies, including Ubisoft, Techland, Krafton, Remedy, and Paradox.
The review stems partly from a long-running investigation by the Committee on Foreign Investment in the United States (CFIUS). The probe began under the Biden administration.
Meanwhile, officials previously raised concerns that Tencent’s gaming holdings could give it access to data from millions of American players.
Some Biden-era officials reportedly argued that the investments represented a “significant intelligence collection source.” The U.S. Treasury ultimately addressed the issue through data protection measures rather than forcing divestment.
National Security Review Resurfaces Under Trump Administration
The issue has resurfaced as the Trump administration takes a more aggressive approach toward companies with Chinese ownership. Washington has previously pushed Chinese firms to restructure or divest U.S. operations.
This included ByteDance selling TikTok’s American business and restricting transactions with Tencent’s WeChat over national security concerns. The move likely comes amid recent tariffs and broader geopolitical tensions.
However, Tencent was previously placed on a Pentagon list of companies alleged to have links to the Chinese military, a claim the company has denied.
A cabinet-level meeting on Tencent’s gaming investments was postponed due to scheduling issues, according to the report. It remains unclear what legal action the administration could take if it ultimately attempts to compel Tencent to sell its stakes.
The debate reflects broader tensions around foreign ownership of technology platforms with large American user bases. It could also reshape global investment ties across the video game industry.
