Tencent Takes a Hit: US Labels Tech Giant as Military Business, Shares Tumble 10%
Tencent has been labeled a Chinese military business by the US Department of Defense, barring it from supplying the US federal government. Despite this, Tencent insists it’s all a misunderstanding and claims the listing will have “no impact” on its business. Meanwhile, its shares took a nosedive, leaving investors reaching for antacids.
Hot Take:
Move over, James Bond—Tencent is the new spy in town! The US Department of Defense seems to think that Tencent has traded its gaming consoles for a secret decoder ring. Now, the Chinese tech giant is added to a list that’s more exclusive than a Hollywood A-list party, joining the ranks of companies with alleged military ties. It’s safe to say that Tencent’s latest ‘achievement’ is less than a high score, and more of a game over… for now.
Key Points:
- Tencent, a Chinese messaging and gaming giant, has been labeled a Chinese military business by the US Department of Defense.
- This designation prevents Tencent from supplying technology or services to the US federal government.
- The company’s shares in the US took a nearly 10% hit following the announcement.
- Tencent maintains that the label is a “mistake” and asserts it’s not a military company.
- Despite the designation, Tencent can still operate in the US market, just not with federal entities.