Tencent Remains on Pentagon Restricted Companies List
The U.S. government maintains its designation of Tencent as a Chinese military company as of June 2026.
Updated on Oct. 29, 2026 in eSports
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The United States Department of Defense continues to categorize Tencent as a Chinese military company following a June 2026 list update. This designation stems from concerns regarding the firm's indirect affiliation with the People's Liberation Army.
Why it matters
The classification subjects Tencent to specific U.S. government procurement restrictions that limit federal contracting opportunities. These regulations carry broader implications for international companies maintaining financial partnerships with the tech giant.
Tencent currently maintains a 13.9% shareholding interest in Krafton. This figure represents the firm's ongoing financial footprint within the developer of Battlegrounds Mobile India.
The players
Tencent
This Chinese multinational technology conglomerate maintains extensive global holdings in gaming, social media, and fintech.
Krafton
Headquartered in South Korea, this video game holding company is the publisher of popular titles including the Battlegrounds series.
United States Department of Defense
This executive department of the federal government oversees the U.S. Armed Forces and manages national security procurement lists.
The details
While the U.S. has flagged Tencent's ties to the People's Liberation Army, its investment in Krafton has drawn separate scrutiny in India. Authorities in India previously blocked Battlegrounds Mobile India in 2022 over data security and server location concerns before allowing its return in 2023.
Timeline
India banned PUBG Mobile in 2020.
BGMI was blocked in India in July 2022.
BGMI returned to the Indian market in May 2023.
Tencent was added to the Pentagon list in January 2025.
The Pentagon list was updated in June 2026.
Season Trajectory
The continued presence of Tencent on restricted lists mirrors the ongoing regulatory pressure affecting global eSports stakeholders and international game development. This status reinforces the limitations on cross-border corporate integration within competitive gaming sectors.
While the Pentagon designation creates federal contracting hurdles, the game Battlegrounds Mobile India remains currently available for players. No immediate changes to existing consumer access or gameplay functionality for the Indian market have been announced by regulators.
The takeaway
The intersection of international defense policy and gaming investments continues to create a complex landscape for global software developers. Players and investors should monitor how future U.S. procurement restrictions might influence the operational strategies of major game publishers.
What happens next
Restrictions on federal procurement for products containing goods made by entities on the Pentagon list are scheduled to take effect on June 30, 2027.
Further reading
Read more about the global gaming environment in our eSports section.
Source note: This article includes information reported by EOTO Tech.
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