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Tencent, one of China’s tech giants has allocated $70 billion to help the digital infrastructure growth of China as Beijing intensifies effort to digitize the economy.
China through the determination of its central government as well as one of its three biggest companies Baidu, Alibaba and Tencent collectively known as (BAT) are redefining the digital infrastructure through their innovations, research and development of digital products as well their investment in the space. Sequel to the promise made by Tencent not to scale back on its investments in startups, the company recently pledged about $70 billion in high tech digital zones as Beijing reaffirms commitment to the development of a robust digital economy.
Tencent in the Tech Development Landscape
Tencent which comes registered as Tencent Holdings Ltd is a Chinese multinational conglomerate holding company that was established in 1998. The company is largely recognized as the world’s largest gaming company, one of the world’s largest social media companies as well as one of the most valuable ones. It is also considered as one of the world’s largest venture capitalist firms and investment corporations. Tencent’s knack for investment in tech-related inventions has given the company a great investment portfolio with ownership of popular Tencent pictures, WeChat, League of legends game as well as Riot games. Over the years, Tencent have invested and partnered with a couple of companies within and outside of China ensuring the digitization of these company’s product offerings. Although Tencent has come under criticisms for rolling out products that are copies of its competitors, the company in its diverse investment has been turning out profits with its total revenue for 2019 standing at Yuan 377,289 billion.
Tencent Investing in Digital Infrastructure
With China’s role in the development and integration of the 5G network, Tencent is set to invest over Yuan 500 billion ($70 billion) over the next 5 years covering areas such as cloud computing and artificial intelligence. In detailing the breakdown of the huge future investment, the company said it will focus on building new data centers, industrial parks, and investing in blockchain as well as other emerging technologies. The firm also said it will work with scientific research experts and laboratories, and invest in major technological research.
Appreciation of the Chinese Tech model
The growth model of China is such that every stakeholder wants to join forces with the government in achieving a set goal. The investment plans of Tencent will bring a healthy competition among other tech giants including Alibaba that has promised to invest over Yuan 200 Billion in cloud computing over the next three years. It will foster new investments in emerging technologies and healthy competition in an industry filled with brilliant minds that will benefit China and the world in the foreseeable future.
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