US Debates Tencent's Stakes in Major Game Companies

Trump administration weighs national security risks of Chinese tech giant's investments in Riot Games, Epic Games, and others.

Published on Mar. 4, 2026

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The U.S. Trump administration is currently debating whether to maintain or curb the massive investments of Chinese tech giant Tencent in several major video game companies, including Riot Games and Epic Games. The Committee on Foreign Investment in the U.S. (CFIUS) is reviewing Tencent's stakes, with some officials advocating for forced divestment over national security concerns about potential data exploitation, while others favor mitigation measures allowing Tencent to retain its investments with strict data protection guarantees.

Why it matters

Tencent's extensive investments in prominent U.S. gaming companies like Riot and Epic have raised national security concerns, as the Chinese conglomerate could potentially access user data and communications that could be exploited for intelligence purposes. The debate reflects broader tensions between the U.S. and China over data privacy and national security.

The details

Tencent holds major stakes in several major U.S. gaming companies, including nearly 28% of Epic Games (Fortnite, Unreal Engine) and 100% of Riot Games (League of Legends, VALORANT, Teamfight Tactics). The CFIUS panel is reviewing these investments to determine if they pose national security risks. Some officials are pushing for forced divestment, while the Treasury Department has historically favored allowing Tencent to retain its stakes in exchange for data protection guarantees.

  • The CFIUS review of Tencent's gaming investments is currently underway.
  • A meeting between President Trump and Chinese President Xi Jinping is scheduled for next April.

The players

Tencent

A Chinese technology conglomerate that holds major stakes in several prominent U.S. gaming companies, including Riot Games and Epic Games.

CFIUS

The Committee on Foreign Investment in the U.S., a panel chaired by the U.S. Treasury that is reviewing Tencent's gaming investments for potential national security risks.

Donald Trump

The former U.S. president who is scheduled to meet with Chinese President Xi Jinping next April, with the Tencent case positioning as a potential bargaining chip.

Chris McGuire

A former technology official under the Biden administration who stated that these gaming platforms could serve as a significant source of intelligence collection for China.

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What they’re saying

“These platforms could serve as a significant source of intelligence collection.”

— Chris McGuire, Former technology official under the Biden administration (Financial Times)

What’s next

The CFIUS panel will continue its review of Tencent's gaming investments, with a decision potentially coming ahead of the scheduled meeting between President Trump and President Xi next April.

The takeaway

The debate over Tencent's gaming investments highlights the broader tensions between the U.S. and China over data privacy and national security, with the potential for the issue to become a bargaining chip in high-level diplomatic talks.