Trump Administration Weighs Fate of Tencent's Stakes in U.S. Gaming Giants Epic and Riot

The Trump administration is currently deliberating whether to permit Chinese tech giant Tencent to maintain its investments in prominent U.S. gaming companies, including Epic Games, the creator of Fortnite, and Riot Games, the developer behind League of Legends.

According to a report from the Financial Times, senior officials have convened to evaluate potential security risks associated with Tencent's holdings in various U.S. and Finnish gaming firms. This assessment comes ahead of a planned meeting between President Trump and Chinese President Xi Jinping scheduled for next month.

Tencent has been actively acquiring stakes in Western game developers for more than ten years. Its most notable investments include a 28% share in North Carolina-based Epic Games and full ownership of Los Angeles-based Riot Games. The company also wholly owns Finnish studio Supercell, responsible for the mobile hit Clash of Clans, and recently made an investment in a new Ubisoft venture following the Assassin's Creed publisher's financial challenges.

Insiders revealed that Tencent engaged in negotiations with the U.S. Committee on Foreign Investment (Cfius) last summer to address these security concerns. Since President Trump's first term, there have been ongoing evaluations about whether Tencent's investments could compromise the data of millions of American gamers. Cfius has expressed similar worries regarding Tencent's acquisition of Supercell, which boasts a substantial player base in the United States.

In January of last year, the U.S. Department of Defense designated Tencent as a Chinese military company, a classification Tencent has consistently denied as erroneous. The potential outcome of the current discussions could see the Trump administration compelling Tencent to divest from these gaming companies or implement stringent data protection measures that meet U.S. approval. Neither the White House, Tencent, nor Epic Games provided comments when approached for statements.