U.S. Officials Review Tencent’s Stakes in Epic Games, Riot Games Over Security Concerns

The administration of U.S. President Donald Trump is reportedly evaluating whether Chinese technology giant Tencent Holdings Ltd (HK:0700) should be allowed to keep its ownership stakes in several major video game companies. According to a report by the Financial Times, senior U.S. officials have been discussing whether Tencent’s investments in leading American and international gaming firms could pose potential national security risks.

Sources familiar with the matter said U.S. government officials recently held meetings to determine if Tencent’s influence in popular gaming companies could provide access to sensitive user data belonging to millions of American players. The discussions highlight growing scrutiny from Washington over Chinese technology firms operating in strategic sectors, particularly those with access to large volumes of consumer data.

Tencent has become one of the most influential companies in the global gaming industry through its significant investments in well-known game developers. The Chinese internet conglomerate owns a 28% stake in Epic Games, the North Carolina-based company behind the massively popular battle royale game Fortnite. Tencent also fully owns Riot Games, the Los Angeles developer responsible for the globally successful title League of Legends, one of the most played esports games in the world. In addition, Tencent owns Supercell, the Finnish mobile game studio famous for hit titles such as Clash of Clans and Clash Royale.

These strategic acquisitions have helped Tencent grow into the world’s most valuable video game company, giving it a powerful presence across console, PC, and mobile gaming markets. However, its international investments have also attracted attention from regulators in the United States.

Tencent’s gaming holdings are among the longest-running cases reviewed by the Committee on Foreign Investment in the United States (CFIUS). The Treasury-led panel is responsible for examining foreign investments that could impact U.S. national security. Officials are particularly concerned that Tencent’s ownership stakes could potentially allow the company to access large amounts of user data from American gamers.

Concerns about Tencent intensified after the Biden administration added the company to a list of firms alleged to have connections to the Chinese military. As geopolitical tensions between the United States and China continue, scrutiny of Chinese investments in U.S. technology and gaming companies is expected to remain a major policy focus.