Government and Internet-based platform company Nexus in communist state: A case study of Tencent expansion to the world

Abstract

China, a communist country that only opened itself to international markets in 1978, has seen its economy develop rapidly due to foreign investment in the domestic market. The state's role in regulating the domestic market is undeniable, and the technology industry is mainly focused on building its technological capacity to keep up with other countries. This paper aims to examine the two-sided coin between China's government and its private industry by building a framework through literature studies on two main focuses: state support and business development strategy. The framework illustrates how Tencent's success in conquering the global market is due to the Chinese government's power to regulate its market and implement its Business Development Strategy. The research results show that the influence of government support has partially impacted Tencent's success. Still, Tencent's success in internationalizing and catching up with technology has significantly contributed to its success in dominating the global market.