China & Tencent

The change in Chinese regulatory policies can be seen as China’s way of re-affirming control over their market, as they essentially play ‘regulation catch-up’ after a period of significant growth in their technology sector. This has been a sustained period during which technology companies have experienced a relatively large degree of freedom. The recent regulations seem to be centred around regulating new industries and aligning the regulatory environment with China’s stated 5-year plan. The Chinese government wants people to have more children, however, a major deterrent to this is the cost of raising those children. In addition to conventional schooling, further online tutoring has become a concern for the Chinese government, as it views conventional education as a public good. The significant additional cost of private tutoring has placed a further burden on parents, an unintended consequence so far as the... Read More