Ahead of a meeting between President Donald Trump and Chinese President Xi Jinping in April, the White House is reportedly considering whether to allow Chinese tech giant Tencent Holdings Ltd. (OTC:TCEHY) to maintain its stakes in major video game companies.



The Committee on Foreign Investment in the US (CFIUS), a Treasury-led panel that reviews inbound investments for potential security risks, has been examining these investments. The primary concern is whether Tencent’s stakes in these companies could grant it access to the data of millions of American users, the Financial Times reported on Wednesday.



Tencent holds a substantial 28% stake in Epic Games, the creator of Fortnite, and owns Riot Games, the developer of League of Legends, and Supercell, the Finnish mobile gaming group behind Clash of Clans.



Officials disclosed that the administration has not decided due to a lack of consensus among the different agencies represented on the CFIUS panel. 



The White House did not immediately respond to Benzinga’s request for comments. 



<h2>Bipartisan Crackdown On Tencent</h2>



During Trump’s first term, the CFIUS raised concerns over Tencent's stakes in Epic Games and Riot Games, as well as its purchase of Finland-based Supercell, due to the company's significant U.S. user base.



During Joe Biden's administration, officials debated how to handle Tencent's U.S. gaming investments. Then-Deputy Attorney-General Lisa Monaco pushed for CFIUS to force divestment, while the Treasury Department favored allowing Tencent to keep its stakes under strict data-protection measures. 



Former Biden-era official Chris McGuire told FT that the platforms could be used for intelligence gathering. In Biden's final month, the Pentagon added Tencent to a list of companies allegedly linked to China's military, a claim Tencent denies.



<h2>US Bans Risky Chinese Tech Devices</h2>



Surveillance of American nationals by the Chinese government has always remained a top threat. In October, FCC Chair Brendan Carr said major U.S. e-commerce platforms have removed millions of listings for banned or unauthorized Chinese electronics, including Huawei, Hangzhou Hikvision, ZTE, and Dahua devices. 



The crackdown, covering items like home-security cameras and smartwatches, aimed to keep risky technology off U.S. shelves. Retailers also introduced new FCC-supervised screening processes to prevent prohibited products from returning.



The White House dilemma also comes in the wake of Tencent’s acquisition of Nvidia Corp.’s (NASDAQ:NVDA) powerful Blackwell AI chips through a Japan cloud deal in December, despite Trump’s warning. 



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.



Image via Shutterstock

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The White House is deliberating on whether to allow Tencent Holdings Ltd. to retain its stakes in major U.S. video game companies ahead of a meeting between President Trump and President Xi Jinping. The Committee on Foreign Investment in the U.S. (CFIUS) is reviewing these investments due to concerns over potential access to American user data. Tencent holds significant stakes in companies like Epic Games and Riot Games. The administration has not reached a consensus on the matter, reflecting ongoing bipartisan scrutiny of Tencent's U.S. investments.

- The White House is considering whether to let Tencent Holdings Ltd. retain stakes in U.S. video game firms ahead of a meeting between Presidents Trump and Xi.  
- CFIUS is assessing potential security risks posed by Tencent's investments, particularly concerns about access to the data of millions of American users.  
- The decision remains undecided due to conflicting views within the CFIUS panel and ongoing bipartisan scrutiny of Tencent's U.S. operations.

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White House Debates Over Tencent's Gaming Stakes Ahead Of Trump-Xi Meeting: Report