Trump Administration Debates Forced Divestment of Tencent Gaming Stakes

The Trump administration is debating whether to compel the Chinese technology conglomerate Tencent to divest its ownership stakes in several U.S. and Finnish gaming companies. The review centers on Tencent's full ownership of Riot Games and Supercell, as well as its 28% stake in Epic Games and interests in Turtle Rock, Ubisoft, Remedy, and Paradox Interactive.

U.S. officials are concerned that these holdings provide a significant intelligence collection source, granting the Chinese firm access to the sensitive financial and personal data of millions of users. The review is being managed by the Committee on Foreign Investment in the United States (CFIUS). The issue had remained unresolved since the Biden administration due to a split between the Department of Justice, which favored forced divestment, and the Treasury Department, which proposed data segregation as a mitigation strategy.

These deliberations follow the U.S. government's decision to place Tencent on the Section 1260H list of firms with alleged links to the Chinese military. The internal debate is resurfacing as President Donald Trump prepares for a scheduled meeting with Chinese President Xi Jinping in China next month.