A new report from Financial Times has claimed the Trump administration is currently investigating the US-based gaming assets of Chinese company Tencent, to determine whether they poses a security risk for the wider United States.
Tencent is currently a major investor in a range of US-based gaming companies. It outright owns Riot Games (League of Legends) and Supercell (Clash of Clans), and has significant stakes in companies including Epic Games and Activision Blizzard.
Worldwide, it also has stakes in Larian Studios, Krafton, Ubisoft and others.
Tencent in the US – quick links
Why Tencent’s gaming investments are reportedly being investigated
In 2025, the US government blacklisted Tencent over concerns it was working with the Chinese military, providing data and intelligence. At the time, the company categorically denied this, with a spokesperson saying it was ‘clearly a mistake’ as it wasn’t a military company or supplier and is ‘not engaged in any military related activities’.
Liu Pengyu, a spokesperson for the Chinese embassy in Washington, told BBC at the time: ‘The US’s practices violate the market competition principles and international economic and trade rules that it has always advocated, and undermine the confidence of foreign companies in investing and operating in the United States’.
The investigation reported by Financial Times appears to be an extension of these concerns, with the US apparently now determining whether a divestment is needed to avoid any potential security risks in future.
What’s next for the Tencent investigation
Per Financial Times, cabinet officials of the Trump administration are set to discuss a possible forced divestment for Tencent, possibly to align with a meeting between US president Donald Trump and Chinese president Xi Jinping.
Sources speaking to the website claimed this investigation has been ongoing for some time, with Tencent reportedly negotiating measures in 2025, while speaking to the US Committee on Foreign Investment to ‘mitigate’ ongoing security concerns.
At this stage, it’s unclear what happens next. Looking to TikTok as a recent example, the US Government has successfully forced a divestment by a major Chinese company (ByteDance), so it’s not outside the realm of possibility that Tencent could be forced to divest its gaming assts.
Should this go ahead, there would be significant changes for a variety of US-based gaming studios, some of which rely on Tencent for essential funding.
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