Title: Is Tencent the Next Target After a Potential TikTok Ban? Let's Explore
The TikTok ban drama is currently gripping the U.S., with the app's fate hanging in the balance. ByteDance, TikTok's parent company, also oversees Marvel Snap, which unexpectedly went offline, causing a stir. This situation has sparked discussions about potential repercussions if the U.S. government decides to ban other social networks out of disapproval.
This brings us to Tencent, the Chinese juggernaut in the gaming industry, owning or investing in numerous gaming giants. The question looms: Could Tencent, a Chinese company deeply entrenched in the global gaming landscape, be the next target?
Congress and government bodies often seem disconnected from the industries they regulate. It's not unimaginable that they might consider Tencent a national security risk, especially considering its vast involvement in major global video games. Tencent's close ties with the Chinese military, as alleged by the U.S. Defense Department, could fuel this argument.
However, Tencent firmly disputes these allegations, issuing a statement saying its inclusion on the CMC List is an error. The company's share price plummeted as a result, but this isn't an unheard-of scenario in turbulent times like these.
Should Tencent become the next target, the implications would be substantial.
- Riot Games, creators of League of Legends and Valorant, are 100% owned by Tencent. Banning these games would have far-reaching consequences.
- Supercell, a significant Tencent stakeholder, has contributed to the popularity of Clash of Clans and Clash Royale.
- Grinding Gear Games, makers of Path of Exile, is another Tencent investee.
- Epic Games, with its 29% stake in Tencent, has made Fortnite a global sensation, while also supplying the Unreal Engine to numerous developers.
- Ubisoft, Bluehole, Remedy, and Platinum Games also enjoy Tencent's patronage.
The U.S. government might demand that Tencent divests from these companies, or at least those distributing games within the U.S. Alternatively, they could prohibit the use of these games within the U.S., which would encumber a massive industry. Although such an eventuality seemed unrealistic a year ago, you couldn't rule it out now, considering the recent turn of events.
Nevertheless, the likelihood of this happening remains questionable. But if the government becomes aware of the massive extent of Chinese companies' influence in the U.S. gaming industry, particularly in games popular among children, they might take notice. For the time being, however, it appears the government isn't fully clued in.
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The potential ban on Tencent could lead to innovative solutions in the gaming industry, as developers like Epic Games, with their Unreal Engine, might innovate to fill the gap if Tencent-distributed games are banned. Furthermore, the gaming community is deeply invested in Tencent's portfolio, with games like League of Legends, Clash of Clans, and Fortnite having a significant fanbase, and any disruption could spark innovation in alternative gaming platforms.
