China has made a considerable U-turn when it comes to blockchain and related technology over the past few years. Having went from heavy government restrictions in the beginning, blockchain now appears to be China’s technology of choice, with the recent announcement by Tencent Holdings being one of the more prominent examples.
Yet another major Chinese investment in innovative technologies
As per the announcement, Tencent will be making a $70 billion investment into blockchain and AI technologies as part of a five-year plan to make significant advancements in the field. Out of the company’s various investments, WeChat stands out as perhaps the most prominent one, acting as China’s primary social media platform. Tencent’s spokespeople also revealed that cloud-based technology is a major driver of their investment policy and is an area they’re looking to expand upon.
5G networks, Internet of Things (IoT) operating systems and data centers are just some of the things that Tencent is looking to explore through its massive investment and, in doing so, greatly bolster the nation’s fintech industry. Just a month prior, the company also revealed that it is accepting applications to fund 30 industrial startups.
These developments are undoubtedly tied to the government’s interest in blockchain, which was revealed back in 2019 but was intensified during a press conference on May 24, where state regulators proposed a government-backed blockchain development fund.