Tensions between the Trump government and China have been on a steady uphill climb over the past few months. The former has repeatedly accused the latter as the reason behind the COVID-19 pandemic which led to a series of controversial statements from both sides.
Following the controversies, the U.S. government has heightened their security on Americans’ personal data and scrutinized companies with ties to China.
This time, the U.S. Treasury’s Committee on Foreign Investment in the U.S. (CFIUS) has inquired gaming companies with ties to Tencent for the security of their users’ data, according to a Bloomberg report. For the unaware, Tencent Holdings Ltd, also known as Tencent, is a China-based multinational technology conglomerate holding company which was founded in 1998.
According to the report, the CFIUS has sent letters to Valorant and League of Legends creators Riot Games, Fortnite creator Epic Games, and some others for information on their safety protocols involving the personal data of Americans.
This decision might be a result of the fact Tencent holds a 40% stake in Epic Games, and fully owns Riot. The representatives of the companies and the Treasury Department have declined to comment on the scenario.
It wasn’t long ago that the Trump government issued an executive order banning popular Chinese apps WeChat and Tik Tok, claiming that the apps were leaking personal data of Americans, consequently compromising national security.