Escalating trade tensions between China and the United States are fundamentally reshaping the strategies of China’s leading tech giants. Tencent $0700.HK and Douyin, both major players in the country’s digital economy, have quickly rolled out new initiatives in response to these shifting conditions. As stringent U.S. tariffs restrict Chinese goods in American markets, these companies are providing vital domestic support for exporters now seeking new growth opportunities at home.
On Thursday, French video game developer Ubisoft announced the creation of a new subsidiary, into which Chinese tech giant Tencent will invest 1.16 billion euros (approximately 1.25 billion dollars). This strategic decision aims to consolidate Ubisoft’s major brands, including Assassin’s Creed, Far Cry, and Tom Clancy’s Rainbow Six, under one structure. The new entity is valued at around 4 billion euros, and the deal is expected to be finalized by the end of 2025.
Recent developments in the artificial intelligence market are radically reshaping the technology landscape. Reports indicate that industry giants such as Tencent $0700.HK, Alibaba $9988.HK, and ByteDance have significantly increased their orders for the H20 chip from Nvidia $NVDA, which has been specially designed for the Chinese market. This news not only underscores Nvidia’s dominant position globally but also highlights the confidence Chinese companies have in proven technological innovations despite growing competition from platforms like DeepSeek.
Tencent Holdings Ltd. $TCEHY shares have reached their highest levels since 2021, attributed to the successful launch of DeepSeek, an artificial intelligence service, on the company's WeChat platform. This move not only reinforces the company's leadership in the tech sector but also bolsters investor confidence in its future prospects.
