The U.S. government is investigating whether Tencent’s investments in video game companies pose a national security risk, considering the possibility of forcing the company to divest. Tencent, a Chinese conglomerate, is a key player in the Western video game market, owning Riot Games and holding significant stakes in Epic Games and Ubisoft, raising concerns about its access to personal data of U.S. citizens.
Tencent in danger from Trump’s ambitions
The attention of the U.S. government towards Tencent began in 2020, under the administration of Donald Trump, although negotiations did not result in significant divestments. In 2025, Tencent was classified as a Chinese military company by the U.S. Department of Defense. Despite these developments, it has been reported that a recently scheduled meeting to discuss these issues was postponed due to scheduling conflicts.
Concerns surrounding Tencent focus on the possibility that the company could gain access to information that has historically been reserved for the U.S. government and local companies. However, forcing Tencent to withdraw from the market could create financial gaps, which could theoretically be filled by private capital, which has proven problematic in other sectors, as evidenced by reports of corporate bankruptcies in private equity-backed companies.
According to various analyses, private equity funds are not usually considered a desirable solution, as they have been associated with a high number of bankruptcies and a negative impact on the stability of companies. In the current context of the video game industry, which is already facing significant challenges, the uncertainty about Tencent’s future in the U.S. is a cause for concern for both developers and consumers.
