Tencent has been designated a Chinese military company by the US Department of Defense, which the conglomerate calls a 'misunderstanding'
Tencent, one of the world's largest videogame publishers, is also a Chinese military company, the US Department of Defense claims. Which has come as something of a surprise to the conglomerate, which has called the designation a «misunderstanding».
The DoD's list of Chinese military companies is updated annually, and Tencent is among the new batch of additions for 2025. While this designation does not come with any sanctions, it demonstrably serves as a warning to US companies not to invest, and as a result Tencent's stock has taken a 7% hit in Hong Kong, as noted by Bloomberg's report.
The origins of the list go back to Trump's first reign, and with his imminent return to the White House, the relationship between China and the US is likely to become even more strained. But for Tencent specifically, a spokesperson claims that this designation won't have much of an impact, despite the effect on its stock.
«We are not a military company or supplier,» they told Bloomberg. «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.»
Companies included on the list can request to be removed, and this has precedent, so Tencent might be able to shake the new designation.
Chinese military companies are those either directly controlled by the People's Liberation Army or those providing it with support, but it's not clear what relationship the DoD believes Tencent has with the Chinese military. It does, however, have a close relationship with the Chinese Communist Party and has an in-house CCP branch—though this is not unusual in China, and indeed for any companies with multiple CCP members it's mandatory.
In a press briefing today, China's Foreign Ministry hit back against the DoD list. «We urge the US to immediately correct its wrongdoings and end the illegal unilateral sanctions and long-arm jurisdiction on Chinese companies.»
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