Tencent Holdings Ltd. announced on Aug. 18 that it will double its budget for social aid amid China’s intensifying scrutiny of its internet companies.
Tencent, a gaming and social media giant, said via WeChat that it will donate $7.7 billion to aid the government in its social welfare programs.
The announcement followed Tencent’s warning for investors to prepare as Beijing plans to expand its restrictions on the Chinese tech industry.
“Our attitude during this wave of regulation is that we want to embrace this new environment fully, and we want to establish ourselves as fully compliant,” Tencent president Martin Lau said.
Tencent wrote in WeChat that their philanthropic move was “a proactive answer to our nation’s strategy,” referring to Beijing’s new wealth redistribution roadmap.
Beijing’s wealth distribution plan vowed to “reasonably adjust excessive income” and encourage wealthy groups “to give back to society more,” according to Chinese state media.
Other tech billionaires including Xiaomi’s Lei Jun and Pinduoduo’s Colin Huang have also pledged to donate their personal wealth to social causes.
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