While different reasons were used to restrict these tech giants' activities or to impose fines, there were ideological and political reasons behind the series of regulatory actions
On May 18, Tencent, China’s leading social media and video game company, announced its 2022 first-quarter results. This news triggered a selloff of Tencent’s and other tech companies’ shares as the company missed the market expectation of its earnings by 4%. Investors were already expecting poor results, but the revelation of a 51% decline in its profit for shareholders came as a big disappointment. Tencent’s subpar performance re-ignited the debate over whether China’s crackdown on its tech giants was coming to an end.