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If you follow tech news, you’ve probably heard of the Chinese government’s many attempts to censor information and stifle free speech among its citizens. You may not realize that this censorship extends beyond the physical borders of China. For the first time, Chinese corporate giants Tencent, ByteDance, and Alibaba turned over their algorithm data to the Chinese government. It’s worth looking at which companies in the US fall under the Chinese corporate umbrella.
The Chinese government now has access to the algorithm data of some of the world’s most famous tech companies. While this may not seem like a big deal, it could have significant implications for how these companies do business. For one, it could give the Chinese government an edge in developing its artificial intelligence technology. Additionally, it could allow the Chinese government to keep a closer eye on the activities of these companies and their users.
It may seem like China is half a world away, but the Internet removes that distance. More importantly, many companies operating outside China are either owned or have ties to Tencent, Alibaba, or ByteDance. Regardless of how much information the companies turned over, their algorithms could potentially lead to data mining. This isn’t so much about the companies themselves but the reach their corporate umbrella could give the Chinese government.
Tencent’s investment portfolio includes companies like Snapchat, Reddit, Tesla, and Ubisoft. In the US, Tencent also owns a minority stake in Epic Games (the company behind Fortnite) and Riot Games (the company behind League of Legends). Other companies Tencent has significant stakes in also include gaming giant Activision Blizzard and online chatroom Discord.
Alibaba is a Chinese multinational conglomerate holding company specializing in e-commerce, retail, Internet, and technology. Founded in 1999 by Jack Ma, Alibaba is one of the world’s largest online marketplaces, with over 617 million active users. The company also operates Taobao, a consumer-to-consumer marketplace similar to eBay, and AliExpress, a global retail marketplace.
Most of the companies Alibaba owns don’t have a presence in the US. However, Alibaba’s cloud unit is under investigation by the US government. Despite being based in China, the US is still the country that drives most of Alibaba’s traffic.
Regardless of ByteDance’s investment portfolio, they own one key algorithm that could rule them all: TikTok. TikTok has exploded in recent years, with 2021 being the year they officially had more online traffic than Google. TikTok is notorious for how addictive its algorithm makes it – and how it can reach your personal data.
We should also keep in mind a majority of TikTok’s users are underage. So far, reports claim ByteDance turned over information for TikTok’s Chinese counterpart Duoyin. While we don’t know if data for TikTok was also turned over, it’s safe to assume the algorithm remains the same for both apps.
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