The executive order will be limited to WeChat transactions only a White House official has confirmed.
US President Donald Trump shook the gaming and business world today when he signed an executive order banning transactions between American companies and citizens and the Chinese business conglomerate; Tencent.
Tencent just also happen to have whole or partial holdings in some of the world’s biggest game developers, including Riot Games and Epic Games; they even have a stake in Activision.
Tencent runs Call of Duty Mobile.
Good luck explaining to your 13-year-old exactly why this happened or if this is happening, because only one person seems to really know for certain. https://t.co/eWsgmIeCUG
— Ben Collins (@oneunderscore__) August 7, 2020
However, according to LA tech reporter, Sam Dean, the order will not affect video game companies.
Video game companies owned by Tencent will NOT be affected by this executive order!
White House official confirmed to the LA Times that the EO only blocks transactions related to WeChat
So Riot Games (League of Legends), Epic Games (Fortnite), et al are safe
— Sam Dean 🦅 (@SamAugustDean) August 7, 2020
But there are aspects of the wording of one clause in particular, which is causing concern. Section 1 a reads; “any transaction that is related to WeChat by any person, or with respect to any property, subject to the jurisdiction of the United States, with Tencent Holdings Ltd…or any subsidiary of that entity”.
Which does sound ominous for those developers either wholly or majority owned by Tencent.
Further updates surrounding the executive order are expected to be forthcoming over the next few days. These should hopefully dispel any lingering questions fans and developers might have regarding the wording of some clauses.
TikTok also facing ban
Trump issued another order alongside the WeChat ban which affects the popular video-sharing app TikTok. The order will effectively ban the app unless it’s sold to a US-owned company within 45-days.
— Andrew Feinberg (@AndrewFeinberg) August 7, 2020
The executive orders are shaking up both the gaming and business worlds. Bloomberg report that since their announcement, Tencent stocks have plummeted, losing $46 Billion USD. That’s the biggest drop Tencent have faced since 2011.
For now, all we can do is wait for further clarification about how the orders will impact developers.
We’ll keep providing updates with the latest news and information as this story continues to develop.