Tencent isn’t thrilled to be on Chinese Military Company list

A few days back, the US Department of Defence put Tencent on the Chinese military companies list. At the time, Tencent called this untrue and a misunderstanding, asking to be removed from the list. The company still retains the sentiment and is told they will be taking legal actions if necessary.

Being on the list itself does not have any sanctions on the company as others can still freely do business with them. However, it does affect a company’s reputation as the shares of the company fell 7.3% in Hong Kong following the announcement.

The company has asked for a reconsideration of this decision. “As the Company is neither a Chinese military company nor a military-civil fusion contributor to the Chinese defense industrial base, it believes that its inclusion in the CMC List is a mistake,” Tencent told PC Gamer.

Also Read: US government now classifies Tencent as a Chinese military company

Tencent is ready to take legal action if necessary

As one can see, Tencent isn’t exactly happy to be on the list. The tech giant has numerous investments globally including a significant chunk in gaming. Tencent is currently one of the ‘big three’ in the gaming industry. Studios like Riot Games are completely owned by Tencent Games, while many others have a sizable portion of investment.

“The Company intends to initiate a Reconsideration Process to correct this mistake. During the process, it will engage in discussions with the U.S. Department of Defense to resolve any misunderstanding and, if necessary, will undertake legal proceedings to remove the Company from the CMC List. The Company will make further announcement as and when appropriate,” the company further added.

Few other companies have reportedly made it off the list after successful negotiations so there’s hope for Tencent too. Else they can always challenge the US government. With Tencent having so much stake across various US companies it will be interesting to see what happens next.