Chinese tech giant Tencent pledges an additional $7.7 billion to help “wealth redistribution”

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www.bloomberg.com/news/articles/2021-08-19/tencent-doubles-social-aid-to-15-billion-as-scrutiny-grows

“The company on Wednesday announced it will give 50 billion yuan ($7.7 billion) to aid the government’s wealth redistribution efforts, adding to an April pledge of 50 billion yuan for a “sustainable social values” program. The new funds will be focused areas like increasing incomes for the poor, improving medical assistance, promoting rural economic efficiency and subsidizing education programs.

Beijing’s campaign to rein in the internet sector is entering its 10th month, having expanded from e-commerce and antitrust into areas like data security and online content. The country this week offered an outline for “common prosperity” that includes income regulation and redistribution, a sign that the scrutiny is likely now expanding into the inordinate wealth tech companies have created for founders like Tencent’s Pony Ma.

“This new strategy by Tencent is a proactive response to the national initiative,” the firm said in a WeChat statement. “As a Chinese technology company that has grown up in the age of reform and opening up, Tencent is constantly thinking about how to use its own technology and digital capabilities to help society develop, so as to better give back to society.”

This could be construed as China’s government directly taking profits from Tencent shareholders.

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At $15 billion, this is well over 50% of profits for the year, all towards ‘common prosperity’ to achieve the CCP’s national policy goals.

 

h/t  cefpodoxime

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