Tencent 'in talks' to keep U.S. gaming investments

Chinese tech giant Tencent is in talks with U.S. officials to hold onto its gaming investments in the United States.

Reuters sources say the company held talks with a U.S. national security panel over its stakes in Epic Games and Riot Games.

There have been concerns that Tencent poses a national security risk due to its handling of U.S. players' personal data and its Chinese ownership.

Tencent owns a 40% stake in Epic Games, the maker of hit video game Fortnite.

It also bought a majority stake in Riot Games in 2011, and acquired the rest of the company four years later.

Riot develops one of the most popular games in the world, League of Legends.

According to the sources, Tencent is negotiating risk-mitigation measures so it can keep its investments.

These could include appointing independent auditors to monitor any agreement reached.

The Committee on Foreign Investment in the United States has the power to order the company to divest its U.S. holdings.

The body has been cracking down on Chinese ownership of U.S. technology assets in the last few years.

It comes amid escalating tensions between Washington and Beijing over trade, human rights, and the protection of intellectual property.

Another Chinese tech giant - ByteDance - was ordered by Trump last year to sell its popular short video app TikTok.

The Biden administration, however, is yet to enforce that ruling.

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