The White House is reportedly debating whether to allow Chinese technology giant Tencent to retain its investments in several major video game companies as U.S. President Donald Trump prepares for a meeting with Chinese President Xi Jinping in April.
According to a report from the Financial Times, senior U.S. officials have held internal discussions over whether Tencent’s holdings in Western game developers could pose national security concerns. The deliberations come as Washington continues to review foreign ownership of companies tied to major technology platforms.
Officials are assessing Tencent’s stakes in several prominent studios, including its minority investment in Epic Games, the developer behind battle royale hit Fortnite. The Chinese firm also fully owns Riot Games, creator of top esports titles like League of Legends and Valorant.
Beyond the United States, Tencent also holds a controlling stake in Finnish mobile developer Supercell, known for globally successful games such as Clash of Clans. The company acquired a majority share in Supercell in 2016 for approximately $8.6 billion.
The FT report said a meeting scheduled for Tuesday, March 2, involving several cabinet officials to review the situation was postponed due to scheduling issues.
Wider Scrutiny of Gaming Investments
Tencent is one of the most influential companies in the global gaming industry, holding stakes across numerous developers and publishers worldwide. Its portfolio spans mobile, PC, and console gaming, with investments in studios across North America, Europe, and Asia.
Any potential move to force divestments or restrict Tencent’s holdings could have significant ripple effects across the gaming industry. Riot Games, Epic Games, and Supercell are among the sector’s most commercially successful studios, with titles that attract hundreds of millions of players globally.
For esports specifically, Riot Games operates some of the world’s largest competitive ecosystems, including the global League of Legends circuit, as well as Epic Games with Fortnite.
With Trump and Xi expected to meet in China in April, the outcome of these internal discussions may also become part of a wider conversation about technology, trade, and cross-border investment between the two countries.