Tencent says inclusion on US government blacklist is ‘a misunderstanding’

The United States government has added Chinese gaming giant Tencent to a ‘blacklist’ of companies it believes are linked to the Chinese military.

While the Pentagon’s designation carries no specific sanctions, it discourages American companies from dealing with its members.

The ‘blacklist’ originates from an executive order in 2020, which prevented US companies from investing in companies with ties to the Chinese military.

Shares in Tencent, which is the world’s biggest games company, fell as much as 7% following the news. Tencent has invested in more than 800 companies. That includes a 40% stake in Epic Games, and shares in Activision Blizzard, Ubisoft, and more.

Alongside Tencent, another company, battery maker CATL, was also added to the list of companies believed to have connections to the Chinese military.

Speaking to The Verge, a spokesperson for Tencent said it planned to push back on the designations.

“We are not a military company or supplier,” Tencent spokesperson Danny Marti said in a statement. “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.”