The Dark Reality of Tencent: How China’s Tech Giant Controls the Nation

Introduction

In his novel “1984,” George Orwell depicted a dystopian society where the government uses advanced technology to monitor its citizens around the clock. While Orwell’s vision was fictional, it seems that China has brought a similar system to life through one of its most influential companies, Tencent. Many might recognize names like Elon Musk, Bill Gates, and Mark Zuckerberg when asked about the world’s top companies. However, not everyone is familiar with Tencent, despite it being one of the most valuable companies globally. This article delves into Tencent’s rise, its dark practices, and how it plays a crucial role in China’s surveillance state.

The Rise of Tencent

Founding and Early Years

Tencent was founded in 1998 by Pony Ma, a Chinese coder and businessman. The company’s breakthrough came in 1999 with the launch of OICQ, an instant messaging service that quickly gained popularity. However, this success came with controversy. The name and idea for OICQ were heavily inspired by ICQ, an instant messaging service launched by an Israeli company in 1996. Pony Ma essentially copied the concept, added a penguin logo, and rebranded it as OICQ for the Chinese market. Despite this blatant imitation, Tencent’s OICQ became a massive success, highlighting the company’s early strategy of leveraging foreign ideas.

Legal Battles and Rebranding

OICQ’s success was so overwhelming that Tencent’s servers couldn’t handle the traffic, necessitating significant investment. Although investors were found, legal challenges soon followed. Tencent eventually had to change OICQ’s name to QQ after a legal battle with ICQ. Despite the name change, QQ’s user base continued to grow rapidly, reaching 50 million users within three years, a remarkable achievement for the time.

Facing Competition and Adapting

In 2004, Microsoft introduced its own instant messaging service, MSN, in China. MSN quickly became popular, causing QQ to be used primarily for casual chatting. However, Tencent responded by customizing its services to better suit Chinese users’ needs, while Microsoft struggled with bureaucratic delays in decision-making. Tencent’s adaptability allowed QQ to outpace MSN, significantly boosting Tencent’s reputation in China.

Dominating the Gaming Industry

Strategic Acquisitions

After establishing itself in the messaging space, Tencent set its sights on the gaming industry. Instead of developing new games, Tencent began acquiring existing gaming companies. China’s policy requiring foreign companies to partner with Chinese firms to operate in the country worked to Tencent’s advantage. Western gaming companies, eager to enter the Chinese market, partnered with Tencent. Over time, Tencent pressured these companies to sell their ownership stakes, allowing Tencent to acquire numerous gaming assets.

Monopoly and Market Control

If a company refused to sell, Tencent would create a copy of their game and offer it for free in the Chinese market. This aggressive strategy led to rapid growth in Tencent’s gaming user base. Today, Tencent is the world’s largest gaming company, controlling a significant portion of the global gaming market.

WeChat: The App That Controls China

Introduction and Popularity

Tencent’s dominance extended beyond gaming with the launch of WeChat in 2011. As mobile internet services grew, Tencent transitioned QQ Messenger into a mobile app and introduced WeChat. Initially, WeChat offered basic messaging features similar to WhatsApp. However, Tencent quickly added a plethora of features, transforming WeChat into an all-encompassing platform.

Integration into Daily Life

WeChat now offers everything from messaging, social media, and mobile payments to food ordering and ride-hailing services. With over 1.3 billion monthly active users, WeChat is used by almost every Chinese citizen. The app has become an integral part of daily life, with users spending an average of four hours per day on the platform, significantly more than the average time spent on social media in other countries.

Monopoly Tactics

Tencent’s strategy for achieving such dominance involved offering rival companies two choices: merge with Tencent or face competition from copied features integrated into WeChat. Most companies chose to merge, unable to compete with Tencent’s resources and reach.

Tencent and Government Surveillance

Surveillance Capabilities

Tencent’s close ties with the Chinese government enable extensive surveillance and censorship. Every message, picture, or link sent through WeChat passes through Tencent’s servers, which are equipped with detectors for keywords and image recognition. Messages containing censored content are detected and blocked without notifying the sender or receiver. Strongly censored messages can even lead to the sender’s arrest, as seen in cases where individuals were jailed for sending jokes or sensitive content.

Impact on Free Speech

During the Hong Kong protests, Chinese citizens who watched protest videos were threatened with disconnection by their network providers, and some were even kidnapped by the police. WeChat played a key role in this crackdown, as the app is used to monitor and control information flow within China.

Data Collection

WeChat’s vast user base provides the Chinese government with an immense amount of data. Tencent willingly shares user data with the government, allowing it to understand and manipulate public opinion. This cooperation has enabled Tencent to maintain its market dominance and become one of China’s leading companies.

Conclusion

Tencent’s journey from a company copying foreign ideas to becoming a tech giant controlling various aspects of Chinese life is both remarkable and alarming. By leveraging government support and aggressive business practices, Tencent has established a near-monopoly in China. The company’s all-encompassing app, WeChat, is not only a tool for convenience but also a means for the Chinese government to exercise control over its citizens. As Tencent continues to grow, its influence and the implications of its relationship with the Chinese government will likely extend beyond China’s borders, affecting global markets and digital privacy.

---