Pentagon Lists Tencent as Military Affiliate

The U.S. Department of Defense has added Tencent Holdings, a major Chinese tech and gaming company, to its list of 'Chinese military companies,' citing alleged ties to the Chinese military. This designation has caused Tencent's shares to drop significantly, reflecting investor concerns over potential reputational damage and operational risks. Tencent, which owns stakes in major gaming and tech companies like Riot Games and Epic Games, denies these allegations and plans to appeal the decision, stating it is not a military company. The blacklist, part of an annual update, warns American companies against engaging with these firms but does not impose immediate sanctions. This development comes as the U.S. aims to curb China's access to advanced technology due to national security concerns. The situation poses challenges for Tencent in maintaining its business relations globally, especially with U.S.-based partners.