Thursday, December 1 2022

China has tightened rules and regulations for big tech companies in 2021. Due to their new restrictions, many giant tech companies saw their revenue drop in 2021 compared to 2020. Big companies including their giant tech e-commerce Ali Baba group, tech giant ByteDance and their gaming tech Tencent saw their annual revenue drop.

Chinese gaming technology company Tencent released a revenue growth report for the year 2021 in which it said it had seen the slowest growth rate this year since its launch in 2004.

ByteDance, which owns the popular short-video downloader app TikTok, saw its revenue jump 70% in 2021 to $58 billion. While that may seem like a lot to you, it’s actually a drop in percentage because in 2020 the company had seen its revenue increase by 100%. It was about $34.3 billion.

According to the tech giant’s internal staff, the figure was leaked to the small number of employees at a meeting last week in the Chinese capital, Beijing. However, the company has not issued any statement in the media about this.

According to a report, ByteDance is one of the largest private companies that have invested $300 billion for businesses in the private equity secondary market.

In November, the company reorganized into six business segments, the biggest organizational change at a technology company since its CEO Zhang Yiming announced in May that he would step down from his post.

Due to the Chinese government’s strict legal action against many companies across the country, growth has slowed in every niche, from gaming technology to e-commerce technology. The Chinese government is imposing new rules for the privacy of users of many companies across the country.

According to the report released by Interactive Marketing Lab researcher Zhongguancun, online ad sales in China fell 9.3% in 2021 and 13.8% by 2020.

However, despite their declining revenue growth percentage, ByteDance has maintained its position in online ad marketing. As of last year, the tech giant held a 21% market share, which placed it second on the market scale.

While the first position taken in Chinese online advertising marketing is none other than their e-commerce giant the AliBaba group, the third place in this market goes to the gaming company Tencent.

Companies have however faced challenges this year in terms of Covid19 and Chinese regulations have always resisted all this.

H/T: Reuters.

Read next: Social media censorship is getting worse according to this study

Previous

Can e-commerce help save the planet?

Next

Boulder Book Store raises funds to replace books lost in fire

Check Also