Tencent has been branded a Chinese military company by the US government.

summation

  • Tencent is on the U.S. Department of Defense list due to its ties to the Chinese military.

  • Being included on the list caused Tencent's stock value to fall.

  • Tencent insists it is not a military company and plans to work with the Department of Defense to resolve any misunderstandings.

Chinese tech giant tencent The company was named on the U.S. Department of Defense's list of companies linked to China's military, the People's Liberation Army. Tencent's new status is the result of a 2020 executive order issued by then-U.S. President Donald Trump, barring U.S. investors from purchasing or investing in Chinese military companies and their subsidiaries. The executive order also requires investors to withdraw their investments from such companies.

These companies, which are believed to have contributed to the modernization of the PLA by providing advanced technology, expertise, and research, for example, are identified in a list maintained by the U.S. Department of Defense. Initially, 31 companies were designated, but more have since been added. This executive order immediately led to the delisting of three companies from the New York Stock Exchange.

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On January 7, the Department of Defense released the latest version of its list of companies identified as Chinese military companies, and Tencent Holdings Limited was included in the list. Tencent quickly responded to the situation in a statement sent to Bloomberg through a spokesperson.

Tencent responds to its inclusion on the Department of Defense's list of Chinese military companies.

We are not a military company or supplier. Unlike sanctions or controls, this list does not affect our business. Nonetheless, we will work with the Department of Defense to correct any misunderstandings.

This year, several companies that no longer met the requirements for designation as military companies were removed from the list. And as Bloomberg notes, at least two companies have worked with DOD in recent years to successfully clear their names. It is assumed that Tencent will do the same.

The release of this list caused the stock values ​​of many of the companies named to fall. Tencent's stock price fell 6% on January 6 and has trended slightly lower since then. Experts acknowledged that there was a correlation with Tencent's inclusion on the Pentagon list. Tencent is the world's largest video game company in terms of investments, and one of the world's largest companies in general. Therefore, the possibility of being included on this list or excluded from investment options in the United States can have significant financial implications.

Tencent Holdings Limited, a gaming giant with a market capitalization nearly four times that of its closest competitor, Sony, operates video games through its publishing arm, Tencent Games. This division includes Epic Games, Riot Games, dying lightTechland, don't nod your head life is strange Fame, Remedy Entertainment and FromSoftware. Tencent Games has also invested in dozens of other high-profile developers and related companies such as Discord.

tencent

tencent

Establishment date

November 11, 1998

headquarters

china shenzhen

CEO

Jangji-dong

known

League of Legends, Contra

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