the Chinese governor strangles Tencent

The world leader in the sector cuts its budgets. The state administration, which has been reorganized this year, has not approved new titles since March.

THE ECONOMIC WORLD
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Tencent has a reason: the Chinese web giant has decided to drastically reduce its investment in the videogames sector, which represents almost 40% of its turnover. According to Bloomberg, the group's management, head of WeChat's social network, sent a letter to executives in their video game industry announcing budget cuts. A decision that makes sense as long as the Chinese administration does not issue new licenses. Since the end of March 2018, no new Tencent stock has been approved by the Chinese video game regulator. A blow to the whole industry and Tencent in particular, whose stock lost 30% of its value on the Hong Kong Stock Exchange this year.

The administration that ran media and video games has been reorganized this year, to be more closely controlled by the Chinese Communist Party (CCP). Now it is the state administration for printing and publications, directly under the control of the CC propaganda department, which is responsible for the approval of video games.

But the precise process is not yet clear. And to make matters worse, President Xi Jinping stressed this summer the responsibility of the industry in the myopia epidemic that affects young Chinese people. An accusation that hangs on the Internet, surfers rather accuse the amount of tasks imposed by the ultra competitive school system. But the case illustrates how much the Chinese government's acquisition of the state and the Chinese company by Xi Jinping's administration translates into increased regulation for businesses.

In 2017, an editorial of People's newspaper, the official newspaper of the Chinese Communist Party had compared videogames to a & # 39; Poison & # 39;

To prevent the rules from being imposed from the top, Tencent's management is stepping up its efforts to try to …

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