Trump Administration Debates Allowing Tencent to Keep U.S. Gaming Stakes

Concerns over data security and Chinese military ties prompt review of Tencent's investments in Epic Games, Riot, and other major studios.

Published on Mar. 4, 2026

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The Trump administration is currently debating whether to allow Chinese tech giant Tencent to maintain its stakes in major U.S. gaming companies like Fortnite maker Epic Games and League of Legends developer Riot Games. Officials are assessing the potential security risks of Tencent's investments, which include a 28% stake in Epic and full ownership of Riot, amid concerns over data protection and the company's ties to the Chinese military.

Why it matters

Tencent has been aggressively acquiring Western gaming studios for over a decade, raising national security concerns in the U.S. about the protection of American players' data and the potential influence of a Chinese conglomerate over the domestic gaming industry. The Trump administration's decision could have significant implications for the future of Tencent's global expansion and the operations of some of the world's biggest gaming companies.

The details

Tencent has been negotiating with the Committee on Foreign Investment in the United States (CFIUS) to address security concerns over its gaming investments, which also include full ownership of Finnish studio Supercell. The U.S. Department of Defense has previously classified Tencent as a "Chinese military company", though the company has disputed this designation. The Trump administration is now weighing whether to force Tencent to divest its stakes in these U.S. gaming firms or implement stricter data protection measures to alleviate national security risks.

  • In January 2025, the U.S. Department of Defense classified Tencent as a Chinese military company.
  • Last summer, Tencent was negotiating with CFIUS to ease security concerns over its gaming investments.
  • President Trump is set to meet with Chinese President Xi Jinping next month.

The players

Tencent

A Chinese multinational conglomerate that has been aggressively acquiring Western gaming studios, including a 28% stake in Epic Games and full ownership of Riot Games and Supercell.

Epic Games

The North Carolina-based game developer behind the popular battle royale game Fortnite, in which Tencent holds a 28% stake.

Riot Games

The Los Angeles-based developer of the hugely popular multiplayer online battle arena game League of Legends, which is wholly owned by Tencent.

Committee on Foreign Investment in the United States (CFIUS)

A U.S. government inter-agency committee that reviews the national security implications of foreign investments in American companies.

U.S. Department of Defense

The federal department responsible for coordinating and supervising all agencies and functions of the government relating directly to national security and the United States Armed Forces.

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What’s next

The Trump administration is set to make a decision on whether to allow Tencent to maintain its stakes in U.S. gaming companies or force the Chinese conglomerate to divest its holdings prior to President Trump's meeting with Chinese President Xi Jinping next month.

The takeaway

This case highlights the growing tensions between the U.S. and China over data security and the influence of Chinese tech giants in strategic American industries. The Trump administration's decision could have far-reaching implications for the global gaming landscape and the future of Chinese investment in the U.S.