
Tencent, the juggernaut Chinese tech and gaming conglomerate, has been placed on a blacklist by the US Department of Defense.
Being on said blacklist doesn't impose sanctions or stop companies trading in the US, but it's designed to deter other companies from doing business with the blacklisted entities.
The blacklist was established following an executive order from then-president Donald Trump in 2020, which prevented companies in the US from investing in firms that have ties to the Chinese military. This is, supposedly, what Tencent is being accused of.
Tencent representative Danny Marti has provided a statement to The Verge, saying: "Unlike sanctions or export controls, this listing has no impact on our business. We will nonetheless work with the Department of Defense to address any misunderstanding."
Again, it can't be understated how massive an entity Tencent is. In terms of being relevant to PlayStation, it wholly owns numerous developers, such as Path of Exile 2's Grinding Gear Games, and Sumo Group — the parent company of Sumo Digital.
Most notably, Tencent owns Riot Games, the Los Angeles-based outfit behind League of Legends and its spin-off titles — many of which have appeared on PlayStation consoles over the last few years.
Beyond those examples, Tencent has majority stakes in various European developers like Techland (Dying Light) and Fatshark (Warhammer 40,000: Darktide).
It also has sizeable stakes in Don't Nod (the original Life is Strange, Banishers: Ghosts of New Eden), Shift Up (Stellar Blade), Epic Games (Fortnite), Bloober Team (Silent Hill 2), FromSoftware (Elden Ring), Remedy Entertainment (Alan Wake, Control), and more.
Recently, Tencent has been in the news because of its stake in longstanding French publisher Ubisoft. There have been reports that the Chinese corporation has been in talks to buy Ubisoft out.
Basically, Tencent has its fingers in a lot of pies, so being blacklisted like this makes for some juicy headlines. We'll obviously have to wait and see whether anything actually comes of it.
What do you make of all this? Buy up some shares of your own in the comments section below.
[source bloomberg.com, via theverge.com, videogameschronicle.com]
Comments 74
It's about god damn time keep that scummy company out
I've always been wary of Tencent and its acquisitions. Way more so than Sony, Microsoft and Nintendo because those at least have a stake in the game with their own hardware and a long history in the industry.
Definately not a fan of Tencent, but I think if they buy out Ubisoft they really could shake the studio up and get them back to their "golden era".
Tencent is poison but this is way over the top.
I'm just surprised it took so long.
What does this mean for their games and studios, a few which are western like Riot Games, Techland and Sumo Digital. Will they be forced to stop releasing games in the US.
Any evidence? Or is this "Trust me bro" from US.gov
And what constitutes ties? By that loose description Microsoft is also a known military contractor with VERY deep ties. Honestly i'd be surprised if most big tech isn't in bed with the military in some way depending how far you spread your net to their subsidiaries.
Also for those who have a problem with tencent can I ask why? What have they done (gaming related) that makes you not like them as a publisher? Or is it simply because they are Chinese.
Trump ain’t messing about is he lol
I'm all for good Anti-Trust-Law, but when it comes to the US there's no one more pathetic when it comes to chinese companies. The whole thing is a farce and pure actionism by the regulators. Just like the laughable TikTok-ban.
@themightyant make an educated guess haha
I don’t mess with Tencent but I wish we also had this energy for companies tied to the US Military, gaming or not.
Just don’t take TikTok away from us!!
@PorkChopExpress rather too big for US political hegemony
@UltimateOtaku91 A combination of Fear of the unknown AKA Xenophobia which is common trait in humans, and conditioned Sinophobia caused by the media over decades.
@UltimateOtaku91 I think it's a little bit of both. Tencent is a mammoth corporation with a propensity for gobbling up any vulnerable gaming companies. However, I think the majority of the suspicion comes from it's inevitable ties to the CCP. While that is completely unavoidable for any Chinese company (if the CCP says "jump," any Chinese company is obligated to ask "how high?"), there are also reports that many of the higher execs at Tencent are very closely tied to the CCP.
It's the same security concerns that a lot of Western governments have with Chinese companies (i.e. Tik Tok). No matter how much a Chinese company can say the don't share user data, they are legally obligated to share that info with the Chinese government if it's demanded.
Pretty much every large Chinese company has some sort of ties to their military. There is no doubt their military benefits at the very least financially from Tencent, but likely receives data they can use for all sorts applications. Many of these games listen to VC, that alone would be interesting from an intelligence perspective. Plenty of people worth monitoring play games. They could learn a lot just listening to a group of Army guys play a war game, or monitor a guy from R&D hoping to hear them talk about a project with others online. There's also a possibility they have some sort of backdoor into system data through their games/applications that give them access to computer files. And then there's always those annoying TOS we have to agree to that no one reads which could give them the legal right to do so simply because you wanted to play Valorant and agreed to it. None of us can say for sure if this is warranted or not, but I'd honestly be surprised if Tencent wasn't helping their military in one way or another.
@wildcat_kickz That's fair, but you could replace almost every statement you made with Microsoft and US Government for example. The amount of Microsoft execs and lobbyists that are balls deep (not quite literally... I hope) in the US political machine is crazy, where is the outrage there. Microsoft has also built a reputation for gobbling up small companies and the competition.
I agree there are additional concerns about data sharing with the CCP but that is really the only major difference. I just don't like people blindly treating one thing they know as fine and another they don't as the devil. It's two faced. Tar them all with the same brush.
@themightyant I get what you're saying, but this doesn't really have anything to do with outrage, per se. This has to do with security concerns for the US government. Ties to the military of a foreign adversary is a much different situation to ties with our own, regardless of how you feel about the military industrial complex.
@UltimateOtaku91 To answer your first question, it won't change anything really. The "blacklist" is an advisory. I think it's meant to discourage other companies from doing business with blacklisted companies, but there's no law prohibiting it.
@themightyant I personally am not a fan of either company 🤷🏽♂️ I don't get why or how people "like" MS or give them the benefit of the doubt either.
The timing of this is interesting - still under the Biden administration, but just barely, essentially forcing the Trump administration to take a look at this some time early this year.
In addition to the US-China politics involved here, there may be some partisan US politics involved.
Also, the US Supreme Court hears arguments this week about the law requiring Tik Tok to divest or be banned in the US.
@wildcat_kickz They aren't "our own" unless you are in the US. Both are foreign powers to me.
@themightyant My own personal concerns with Tencent are twofold: 1 has to do with user data, but I have the same concerns with Western companies. However, that concern is amplified when that data is being used and manipulated by a foreign adversary. It doesn't mean that what the US is doing is any better, but at least they're on "our" team.
My second concern is as I said: big companies gobbling up competition, which is a concern I definitely have with Western companies and I don't view that concern any differently between Western or Eastern companies.
@themightyant I'm American, so the Devil is on my team.
Don't China ban a lot of American media for their military and cia ties? plus the propaganda of course.
@themightyant Thats the point. All US companies ties with military are well known. Even if a few kept secret, then they will be revealed sooner or later, due to freedom of journalists. But it is totally untrue in Asia, especially in China. Everything is under control, all are brainwashed in schools and very patriotic to the extreme. A few whistleblowers are sent to camp. So you know most of US and western countries involvement in foreign affairs. China don't do that? They are even worse, a massive bully, supporting dictators. It isn’t just in the news. So yeah proof/ evidence are not reliable in Asia as they can be easily made.
How do I know? I m originally from Asia, a Chinese descent born in a neighboring country.
Tencent is owned by the CCP so yea money is going to the military. I’m sure this is in retaliation to China adding 28 US companies to its export control list. It’s for companies that produce goods that can be used for both military and commercial. Don’t worry, this won’t affect anything that deals with video games.
Keep a lookout for hoyoverse too, they're building nuclear energy for the ccp and might also have tie with Chinese military weaponization.
Quality hypocrisy going on here whilst trump is willing to use force to take over Greenland and the Panama Canal and the musky scent of elon is sticking his nose right into UK politics 🤣
But Call Of Duty having clear links to the US military industrial complex is ok!
@Vega37 I don't specifically have a problem with Microsoft OR Tencent, I treat them all the same. They are all multinational corporations that seem to be treated differently by governments in a way that isn't fair to small businesses.
@mrbone I agree there are issues with China's human rights records and journalistic access among other issues but that is getting pretty far away from Tencent specifically. Will anyone outraged that the US says Tencent has ties to Chinese Military also be outraged about Microsoft? I doubt it. It's classic prejudice.
And are China a bigger bully than the USA? Really?
Rich boys playing with us as their toys. Feels like it’s all coming to a head, doesn’t it?😝
@themightyant There in lies the problem. They are not the same. You need to know first before you can say they are the same. Yes they are a bigger bully. As their neighbor, I make this claim with 100% certainty. You know all about US bullying around the world. Their media also say whatever they earn. But how much do you know about China? Prejudice? My own experience is prejudice?
@mrbone To be clear I wasn't talking about you specifically. I was saying anyone that gives Microsoft a pass because they are a local company and Tencent a fail because they are Chinese is prejudiced.
I hate Tencent, but it is funny that people from the West (the US especially) will count this as a victory and then go on to buy every slop military shooter from studios with obvious connections to US intelligence or hire them as advisors for the games.
Its not okay all of a sudden cause its your "devil" that is just ridiculous and sounds like the type of brainwashing they accuse others of doing
@themightyant I don't think anyone is "outraged" that Tencent has ties to the Chinese military. This article is talking about a US government blacklist with regards to security concerns for US citizens. Just about every large corporation has ties to a governmental military apparatus in one way or another.
I love that everybody gets in a right tiz over anything to do with China especially when you all know who starts on about their human rights violations etc,etc,etc...but let's not forget that japan has a pretty bad history when it comes to human rights violations (ask the manchurin people about unit 731) but everybody's still using their playstations right? You know the ones manufactured in Japan. In fact every country in the world have their skeletons hidden away in the closet. If we boycotted everything we deem as unacceptable because it's made or financed by a disreputable company with ties to a country that's not socially acceptable then we would have a pretty boring and limited existence. I love the keyboard activists and everything they bring to the table..
Good job, Tencent. You fight against hegemony and have my support.
@themightyant Doesn't matter. I say they are not the same, based on my own experience.
I don't want to bring politics on game site but I can't stop feeling pity whenever I see someone comment- 'oh it is the same, you are just being monitored by either US gov or CCP'. They think all gov are the same. A big No, man. No gov is perfect but believe me you haven't experienced the worst. Only then you know the difference, one;y then you would more appreciate your gov which you thought is an utter rubbish. You may think I am exagerrating but some thing, you need to experience to believe it.
@Northern_munkey To be fair, those human rights abuses by Imperial Japan were during WW2. China is engaged in human rights violations today.
There have been many attempts in the past but if Trump tries to take away people's ability to buy certain games then he really will be kicked out of office this time. He should watch his footing here, China has infiltrated the US through numerous successful games.🤣
@wildcat_kickz that does not make it OK does it? Will China get a free pass in say 70 plus years time? Every country has blood on their hands no matter what decade it was spilled in. Exactly what does everybody hope to achieve by taking to video game comments sections to post their disapproval at corporate shenanigans other than to have their names (pseudonyms) for all to see for their 15 mins. Why can't we keep video games away from political discourses and people's personal agendas?
Trump will banned violet video games next because he use them as an excuse for most of the mass shooting that’s been happened in the states lately.
Looks like I’ll be buying more tencent games going forward
@Northern_munkey It definitely doesn't make it ok, but we live in the present, not 70 years ago or 70 years from now.
I didn't buy my PlayStation from Imperial Japan of 1942.
I'd rather do business with a country that committed atrocities 70 years ago than one that's committing atrocities today.
@wildcat_kickz I understand what you are saying and at least you are being honest but I'm sure you understand the point I'm making. There are way too many people who use pushsquare as their personal soap box to extoll the evils of China but fail to acknowledge any other country's misdemeanours until it fits their narrative. I am not lumping you in with those so don't think I am. Its good to have a discussion without it getting heated.
Yeah, yeah, whenever a Chinese company gets into a strong position where it's competing with US companies then they always pull stuff like this to hamper them. They did it to Huawei and now they are trying to do it to Tencent.
Americans good, everyone else baaaaad
@Northern_munkey Yeah, I totally get it. There are plenty of people who go full tilt in the comments and resort to ad hominem, which, in my opinion, automatically voids their arguments.
However, there are realities of being subject to the Chinese government, which cause legitimate problems and are fair to point out. You don't necessarily need to bring up a Western flaw to balance it and give the appearance of fairness, though I do understand when you say that there are plenty of people who refuse to even acknowledge the flaws in our own societies.
I do legitimately believe that the Chinese government is more malevolent than most counterparts, but that has nothing at all to do with the Chinese people. I spent the majority of my primary education at a predominantly Chinese school in a US Chinatown. I learned Mandarin, learned Chinese culture, music, history, etc. and loved it all.
If anything, I want more Chinese cultural exports, including video games. So many people have no idea how much wonder and inspiration comes from China and the Chinese people.
Yeah Tencent is very shady and them infecting gaming was never a good sign.
They really do. I'm glad that they are at least being exposed.
This is going to be a year of bans.
@MrMagic it works both ways I think. From my (admittedly very uneducated) view, it seems Chinese companies get a lot more freedom to operate in the West than Western companies get in China. Everyone's protecting their own interests.
@Northern_munkey There's absolutely no action you can take today to change abuses that happened 80 years ago.
There might be actions you can take today to affect abuses happening today. THAT is the difference, and it's a significant difference.
@wildcat_kickz Dunno about you yank maybe tell your government to pay your debt to China?
@RobN You do realize that there's almost no one left alive in Japan from that era, right? I don't blame modern Japanese people for the atrocities "some" of their ancestors committed...
@WiiWareWave You understand you're effectively making the same point I was making? You should be responding to @Northern_munkey who doesn't seem to recognize a moral difference.
@mrbone Actually, if we want a balanced view about France, why wouldn't we ask the English? Not ONLY the English, of course, but how can you get a balanced view without including them? The same goes for all your other examples - yes, listen to the critics, just not ONLY the critics.
I don't assume I understand much about China, to be honest - but I also believe that, politically, I understand why the US government sees them both as a partner (one of our largest trading partners, the largest outside North America) and as a potential threat (and I admit it's fair for China, and even other countries, to see the US much the same - recent rhetoric from our President-elect making that more understandable than normal).
@RobN Oops tagged the wrong person...sorry about that! 😅
@mrbone I’ve deleted my comment because on reflection this is a gaming site and it’s all getting too political. I’m not here to convince anyone, I just find it frustrating when the same rules don’t apply to “us” as they do to “them”.
@RobN I agree but I didn’t say their views shouldn’t be counted, only that they are likely to be less balanced.
USA motto: if you can't beat em, ban them 😂
Already predicted this is gonna happen when the orange guy won the presidential campaign.
It won't affect them because they are a Chinese company, but it would be another whole story if it was a company from another country, mainly Russia.
How do I know that? Well, ask Deepcool, just by being involved with a russian company they got banned.
@RobN I don't recognise a moral difference? Thankyou for letting me know and I'll bear that in mind 👍
I'll start believing it all when I see the Chinese Military fighting wearing Stellar Blade Eve's apparel and weapons.
Thats' the reason they buy the game companies, so they can take those ideas and adapt them to their military afterall.
@Northern_munkey While people are going on about humans rights and things, I think most people are missing the major point. In China no western companies have free and fair access to the market, and many companies are effectively straight up banned from entering the Chinese market.
That is what this is about, the same reason that Huawei got kicked out of the western markets. Not saying it’s right but it’s just basic tit for tat.
@ChrisDeku yes I understand all that too and all the implications that come along with it. This article has nothing to do with gaming at all apart from the fact it names tencent and that's it. It's a political article and has no place here.
@Balosi that's true but the difference is China safeguards their own market while the US does stuff like this to hurt Chinese companies globally.
@wildcat_kickz
Perfectly stated. There’s a lot of delusional and very misinformedarguments in these comments. Tenant has direct ties to the CCP. No one‘s issues with China have anything to do with the Chinese people; it has everything to do with the Chinese government. I have endless criticisms of our US government, but the Chinese government is on a completely different level with their exertion of control and human rights violations. People trying to stir controversy by claiming xenophobia need to grow up. Also, anyone who wants to speak on this topic should research what China has done to the Uyghurs.
@Northern_munkey I think politically slanted articles certainly have a place here, but I do understand and agree with the frustration of seeing politics infect everything on the website. For example, it would be really nice if Push Square could publish an article about Naughty Dog that didn't devolve into commentary on wokeness, Israel, etc.
@wildcat_kickz I think we will have to agree to disagree on whether or not politics should be discussed on a gaming site. I personally just don't think it is the correct forum.
@themightyant so what if Microsoft is tied to the US military? It's still an American enterprise. Tencent is tied to foreign rival's military, you see where I'm going?
@nessisonett Call of Duty is banned in China
@Illyrian Same answer I said above. Microsoft is also "foreign" to anyone not in the USA. (This is an UK based website network, though now owned by IGN). Not everyone thinks the same as American's that's my point, perspective is important.
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