Tencent threatens ‘legal action’ if US doesn’t reverse its designation as a Chinese military company

Chinese megacorporation Tencent has once again strengthened its claims that it is not a Chinese military company, saying that if the US Department of Defense does not “resolve any misunderstanding” it will “take legal action.”

In a public statement that the company said it was making on a “voluntary basis,” it stressed that the firm is “neither a Chinese military company nor a member of the military fusion industry of the Chinese defense industrial base,” and that although the accusation “not to impact (Tencent’s) business,” the US Department of Defense made a “mistake” when it publicly classified the firm as a Chinese military company.

The company initially insisted that the listing was simply a misunderstanding, but a subsequent statement took a much stronger stance: “The company intends to initiate a review process to correct this error.

“During this process, it will engage in discussions with the US Department of Defense to resolve any misunderstandings and, if necessary, undertake legal proceedings to remove the company from the CMC list. The company will make additional announcements as and when appropriate.”

As Tom reminded us when the news first broke last week, Tencent’s influence in the global video game industry is enormous. It owns League of Legends developer Riot Games, Dune: Awakening maker Funcom and UK company Sumo Digital, as well as several of its own companies such as Pokémon Unite maker Timi Studios. The company is also in talks with Ubisoft regarding a potential share buyback.