The Intelligence from The Economist The Intelligence: The CCP would like chips with that
Jan 16, 2024
Don Wineland, China business and finance editor for The Economist, dives into the complexities of China's evolving tech regulations. He discusses the government's pivot from consumer tech to 'hard tech' sectors like semiconductors and AI, amidst inconsistencies in video game policies. Wineland also addresses the challenges faced by major gaming companies like Tencent and NetEase, highlighting the delicate balance between state control and market appeal. Additionally, the conversation touches on the cultural shift of sharing personal diaries online.
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Tencent's Dreamstar and Regulatory Challenges
- Tencent released a game called Dreamstar, similar to Mario Kart, hoping to compete with NetEase's Eggie Party.
- However, Chinese regulators signaled a cap on in-game spending, causing Tencent's share price to plunge.
China's Tech Regulation Goals
- The Chinese government's regulations aim to align massive internet companies with the Communist Party's plans.
- They prefer investors focus on "hard tech" like semiconductors and AI over gaming and social media.
Balancing Control and Investment
- The Chinese government is trying to balance attracting investors with maintaining control over companies.
- They're also trying to avoid big market shocks and negative reactions to regulations.
