Tencent says it's not a Chinese military company and is willing to sue the US Department of Defense if it isn't removed from a blacklist

GamesTencent says it’s not a Chinese military company and is willing to sue the US Department of Defense if it isn’t removed from a blacklistWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.

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(Image credit: Bloomberg via Getty Images)

Tencent HQ

Earlier this week the US Department of Defense added a new batch of companies to itsChinese military companies blacklist. While inclusion on the list comes with no sanctions, it does have a reputational impact, and is designed to put off US investors. Tencent called the designation a “misunderstanding”, and has since provided a full statement, noting its plans to “initiate a Reconsideration Process to correct this mistake”.

“During the process,” Tencent says, “it will engage in discussions with the U.S. Department of Defense to resolve any misunderstanding, and if necessary, will undertake legal proceedings to remove the Company from the CMC List.”

Other Chinese companies have successfully negotiated their removal from the list, including XIaomo Corporation, an electronics company best known for manufacturing smartphones, which was taken off the list in 2021.

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As one of the largest companies in the world, and the biggest videogame publisher, Tencent does a great deal of business with both the US and globally. It owns Riot Games, Funcom and Grinding Gear Games, which just released Path of Exile 2 in early access in December. It also has stakes in Epic, Larian,FromSoftware, Paradox, Frontier, Roblox Corporation,Ubisoft—basically, if you’re playing a game, there’s a good chance Tencent has some involvement.

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