First it was ByteDance’s TikTok. Now, Tencent Holdings is alleged to be coming below scrutiny by the Trump administration.
The Committee on Overseas Funding within the US despatched letters to corporations Tencent has invested in, together with Fortnite maker Epic Video games and League of Legends developer Riot Video games, asking about safety protocols for American customers’ knowledge, in response to a report in Bloomberg. CFIUS investigates nationwide safety issues tied to overseas acquisitions or investments of US companies.
The letters had been despatched as President Donald Trump is weighing whether or not to ban TikTok’s app from the US.
Representatives on the White Home, US Treasury Division, Tencent, Epic Video games and Riot Video games did not instantly reply to requests for remark.
The transfer marks the newest escalation of Trump’s efforts to scrutinize Chinese language corporations and investments within the US. Varied administration officers, together with Trump, have claimed with out proof that some seemingly innocent Chinese language-owned apps, comparable to the brand new sizzling social community TikTok,.
It is also come at a time when Trump is escalating his fights with Beijing normally forward of the 2020 US presidential election. Trump has repeatedly blamed China for thepandemic, for instance, and has when referring to COVID-19.
TikTok has develop into a global phenomenon over the previous yr, attracting greater than. In 2019, and its companion Messenger apps mixed, in response to knowledge collected by Sensor Tower, making it one of the profitable Chinese language apps ever launched within the US.
That recognition is partially what introduced added scrutiny from the Trump administration.
In August, Trump stated he would ban TikTok from the US until it was offered to a US firm, and cash was paid to the US Treasury. In an, Trump stated that the consumer knowledge TikTok collects “threatens to permit the Chinese language Communist Get together entry to People’ private and proprietary info — probably permitting China to trace the places of federal workers and contractors, construct dossiers of private info for blackmail, and conduct company espionage.”
He signed an analogous govt order banning WeChat, a preferred messaging app that is broadly utilized in China. On the time, the White Home stated the order solely lined WeChat from doing enterprise within the US, and did not have an effect on its proprietor Tencent. Now, it seems with these requests from CFIUS, which will change.