Tencent loses billions in market value after the U.S. alleges the video game giant has links to China’s military

(Credit: Qilai Shen—Bloomberg/Getty Images)

A surprise, last-minute decision by the Biden administration to designate Tencent as a firm with ties to China’s military has erased billions in market value from the world’s largest video game company.

Tencent shares in Hong Kong dropped by around 7.3% on Tuesday, following news that the Department of Defense included the tech giant on a list of “Chinese military companies.”