US weighs banning Tencent's stakes in Epic, Supercell over security fears
US officials are reviewing Tencent's investments in American and Finnish gaming firms over possible national security risks. The Chinese tech giant holds major stakes in companies like Epic Games and Supercell, the maker of Clash of Clans. A decision is expected before President Trump's meeting with Chinese President Xi Jinping in April.
The US government has tightened scrutiny of foreign investments in gaming, semiconductors, AI, and biotech since 2022. Under Biden's 2023 executive order, agencies like CFIUS expanded reviews, forcing divestments—including Tencent's partial exit from Epic Games in 2024. Similar actions targeted TikTok (ByteDance) and Grindr (blocked in 2020).
Top officials recently held internal meetings to assess Tencent's $8.6 billion stake in Supercell and other holdings. A planned cabinet discussion on Tuesday was postponed, but the issue remains urgent. President Trump must now decide whether to ban Tencent from US gaming-related companies or allow its stakes to continue.
The outcome will shape US-China relations ahead of Trump's April meeting with Xi Jinping. A ban could force Tencent to sell its shares in Epic, Riot, and Supercell. The decision follows years of stricter controls on foreign tech investments in sensitive sectors.
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