U.S. Department of Defense adds Tencent to list of 'Chinese military companies'

Tencent wants to engage with the U.S. Department of Defense to correct what it claims is a "mistake" that has led to it being included on a newly-published list of Chinese Military Companies (the CMC List) operating in the United States.

The Chinese tech and video game conglomerate, which owns major studios such as League of Legends maker Riot Games and Clash of Clans developer Supercell, was included on the refreshed CMC List published earlier today.

The document was shared on the Federal Register and serves as a "notice of Chinese military companies operating in the United States."

Responding to its inclusion in a notice to investors, Tencent acknowledged the situation but insisted it is "neither a Chinese military company nor a military-civil fusion contributor to the Chinese defense industrial base."

It suggested its inclusion on the CMC List is a "mistake" but noted its business operations in the United States won't be impacted by the move.

"Unlike other lists maintained by the U.S. Government for sanctions or export control measures, inclusion in the CMC List relates only to U.S. defense procurement, which does not affect the business of the Group," it added.

"The CMC List is also distinct from the Non-SDN Chinese Military-Industrial Complex List (NS-CMIC List) maintained by the U.S. Office of Foreign Assets Control, and inclusion in the CMC List will not prohibit any persons (other than the Department of Defense) from business dealings with the company, including translating in the securities of the company."

Tencent will contact the Department of Defense to initiate a "reconsideration process" to correct what it again claims is an error but is prepared to play hardball. "If necessary, [we] will undertake legal proceedings to remove the company from the CMC List," it added.