Tencent Grapples With Government Regulation, Revamps Infrastructure | TechGraph

Tencent Grapples With Government Regulation, Revamps Infrastructure

The Chinese internet giant Tencent announced on Sunday that it is revamping its infrastructure owing to stringent regulation imposed by the government.

The Shenzen-based and Hong Kong-listed company is about to combine the original seven business groups into six, including a new one on cloud and smart industries, the official statement from the Internet firm said.

“Tencent will further explore the integration of social, content, and technology that is more suitable for future trends, and promote the upgrade from consumer internet to the industrial internet,” the statement further added.

Tencent also plans to set up a technology committee to thwart the challenges posed by China’s intensified crackdowns on online gaming. Tencent, which primarily is a video game company, has seen a decline in profits for the first time in thirteen years.