China’s tech behemoths are increasingly turning to Southeast Asia in the face of growing hostility from the US and other major markets, setting up the region – with its 650 million increasingly smartphone-savvy population – as a key battleground. President Donald Trump has banned US entities from dealing with Tencent’s super-app WeChat from Sept. 20, while the company’s hit games PUBG Mobile and Arena of Valor are banned in India.
Tencent Holdings Ltd. has picked Singapore as its beachhead for Asia, joining rivals Alibaba Group Holding Ltd. and ByteDance Ltd. in the race to build up their presence closer to home after setbacks in the US and India.
Management at China’s largest social media and gaming company had been discussing Singapore as a potential regional hub and geopolitical tensions accelerated its plans, according to people familiar with the matter. Tencent has been considering the shift of some business operations – including international game publishing – out of its home country, according to the people, who asked not to be identified discussing private deliberations.
