Imagine if Tencent and ByteDance get the Chinese government’s approval for any investments in other companies? Given their stakes in various music companies elsewhere in the world, it would be a big deal in our industry as elsewhere.
Reports have suggested that this is on the cards: new rules in China that would give the government oversight on investments and fundraising by tech companies with more than 100 million users or more than 10bn yuan ($1.58bn) in revenue.
However, there is some confusion: Reuters originally reported on the draft rules, then followed up with a denial from China’s internet regulator that it published the document that was the source for the story. Still, some kind of regulations may be incoming, and that appears to be sparking action from the affected companies.
ByteDance, for example, has just dissolved its strategic investment team, although TechCrunch reported that some of those staff will continue their work elsewhere in the business.