China's Tencent Should Tread More Lightly
Posted in: Miscellaneous at 10/11/2010 00:36
Wielding the heft of China's state-owned companies, but lacking the government's backing, China's Internet companies need to tread ever more carefully. Instant-messaging giant Tencent offers the latest illustration.
China's Internet sector has been a rare area of opportunity for privately owned, entrepreneurial companies like Tencent -- the world's third-largest Internet company by market capitalization -- and counterparts Baidu and Alibaba.com. But rapid growth in these companies also means they find themselves more dominant within their fields than many government-backed enterprises. That's exposing them to new legal and public-relations challenges concerning their often monopolistic positions.