The U.S. Department of Defense (DoD) designated Tencent as a Chinese military company on January 6, 2025, adding it to the Section 1260H list alongside 133 other companies. While this designation doesn't impose direct sanctions or ban U.S. companies from working with Tencent, it may affect business relationships and increase U.S.-China tensions.

Tencent has firmly denied these allegations, with company representatives stating to Bloomberg that the designation is "clearly a mistake" and asserting to The Verge that it "has no impact on our business."

Why the Military Designation?

The DoD's decision stems from several factors:

• Tencent's significant annual revenue ($80 billion) potentially indirectly supports Chinese military funding
• The company's involvement in AI and quantum computing research and development
• Concerns about civilian technology applications supporting military advancement

Tencent's Gaming Empire

As the world's largest video game publisher, Tencent owns or has significant stakes in:

• League of Legends (Riot Games - full ownership)
• Path of Exile 1 and 2 (Grinding Gear Games - full ownership)
• Epic Games (40% stake) - Including Fortnite and Unreal Engine
• Activision/Blizzard (5% stake)
• Ubisoft (15% stake)

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