Tencent has been in talks with the Committee on Financial Investment in the United States (CFIUS). The topic? Whether or not the committee will allow Tencent to keep their stakes on Riot Games and Epic Games.

Tencent may be forced to give up Riot Games, Epic Games stakes

Tencent has been discussing with the CFIUS to argue in their favor, Reuters reports. The CFIUS has been reviewing the Chinese company's stakes on Riot Games and Epic Games, two US companies where it has significant stakes. Tencent has a 40% stake in Epic Games, while it has full ownership of Riot Games. Epic and Riot are among the largest companies in the US video game industry, publishing two of the biggest multiplayer games of our time. Epic has its Fortnite, while Riot has its League of Legends and VALORANT.

Tencent's legal troubles with the US come off concerns over how Tencent handles user data. Chinese national cybersecurity laws state that companies will have to provide it any user data it requests for the benefit of national interests. The same laws led to the banning of Huawei from operating in the US and other countries.

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Tencent maintains that its stakes in both Riot and Epic do not pose any security risk. They maintain that neither company shares user data with Tencent. However, many feel skeptical about this statement. Its talks with the CFIUS may lead to risk-mitigation measures that will ensure that such practice will really be enforced. However, details on any possible deals with the CFIUS and whether or not Tencent will push through have not been confirmed yet.

The CFIUS has been cracking down on Chinese influence and ownership over US technology assets over the past few years. President Joe Biden and Former President Donald Trump both maintain similar foreign policies with China in this matter.