Chinese tech companies boost mergers with government support

China’s tech giants, like Alibaba and Tencent, are diving back into buying and merging with other companies after years of tough government rules. Beijing’s earlier crackdowns cost these firms billions and pushed some leaders out of the spotlight. Now, the government is cheering them on, wanting to build strong national tech players, especially in artificial intelligence (AI), to reduce reliance on U.S. technology.

President Xi Jinping has met with business leaders to show his support for private companies. This shift has sparked a wave of deals. For example, Tencent bought a major stake in Kuro Games, a developer known for the game Wuthering Waves, and is exploring a deal with Nexon Co. These moves aim to strengthen China’s position in gaming and AI globally.

The government’s new stance is clear: it wants Chinese tech firms to lead in innovation and compete worldwide. By supporting these mergers, Beijing hopes to create “national champions” that can stand up to global rivals. This comes as China faces tech restrictions from the U.S. and other countries, pushing it to develop its advanced technology.

However, not everyone sees this as positive. Some worry that these deals could lead to too much control by a few big companies, potentially stifling smaller startups. Still, for now, China’s tech giants are moving fast, using Beijing’s backing to grow their influence and build a stronger tech industry at home and abroad.