Wednesday, June 29, 2022
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Tencent and its gaming investments under scrutiny from the US Government

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Chinese tech companies have been under fire from the US government due to the ongoing scuffle between china and us. Trump administration citing the security issues of various Chinese technologies that are deployed in the US market. The US government has once again put forth its concerns regarding the data management protocols of yet one more Chinese Tech giant.

This time it’s the Chinese conglomerate Tencent who came under US government scrutiny. The company is not only just a Chinese brand. It is also one of the world’s largest video game vendors.

Due to a multitude of its business, the tech giant has several operations in the US. Now the U.S government has asked Tencent’s gaming investments about the security of their data management protocols.

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This move comes as a part of the US administration’s actions against technology companies that authorities believe pose a risk to the security of the United States.

How it would affect Tencent

If the US government determines that the personal data of gamers are at risk. Then Tencent could very well be facing complete removal from the US market. Not to mention other companies in which Tencent has invested like epic games and riot games, could also loose to stand their market share in the US.

So far the US officials have claimed that the game developers’ equipment will fall under China’s controversial National Intelligence Law. This law binds the Chinese companies to share their assets with the Chinese security should the need arise.

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This inquiry is a fresh statement in the ongoing scuffle between the US and China. it also serves as a driving force for Trump’s upcoming presidential election.

As of now, concerns have only been made regarding the security of user data. If the gaming giant will suffer from the same fate as Softbank’s TikTok is hard to predict.

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Nivedita Bangari
Nivedita Bangari
I am a software engineer by profession and technology is my love, learning and playing with new technologies is my passion.

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