Many Chinese giant including TikTok owner ByteDance were facing slow growth rate in the year 2021 due to government's strict rule and regulation

China has tightened the rules and regulations for the big tech companies in 2021. As a result of their new restrictions many tech giant companies have seen a fall in their revenue of 2021 in comparison to 2020. Major companies including their e-commerce giant Ali Baba group, the tech giant ByteDance and their gaming tech Tencent have seen a decline in their annual revenues.

The China gaming Tech Company Tencent issued a report about their revenue growth for the year 2021 in which they stated that they observed the slowest growth rate this year since they launched in 2004.

ByteDance which owns the popular short video uploading app TikTok saw a growth in their revenue by 70% in 2021 which was 58 billion dollars. While this may seem a lot to you it is actually a fall in the percentage because in the year 2020, the company had seen a rise in their revenue by 100%. This was around 34.3 billion dollars.

According to the internal staff from the tech giant, this figure was disclosed to the small number of employees in a meeting which was held last week in China's capital, Beijing. However, the company did not release any statement in the media about this.

According to a report, ByteDance is one of the largest private firms who have invested 300 billion dollars for business in the private equity secondary market.

In November, the company rearranged itself into six business parts which was the biggest organizational change in a tech firm since its CEO Zhang Yiming announced in May that he would step down from his position.

Due to the Chinese government's strict legal action against many companies all around the country have seen slower growth in all niches from gaming tech to e-commerce tech. The China Government imposes new rules for the privacy of the users of many companies from all around the country.

According to the published report released by researcher Interactive Marketing Lab Zhongguancun China’s online ad sales have decreased by 9.3% in 2021 and by 13.8% by 2020.

However, despite the fall in their revenue growth percentage, ByteDance has sustained its position in online advertising marketing. As of last year, the tech giant had a market share of 21% in the market which made them stand in the second position on the market scale..

While the first position taken in Chinese online advertising marketing is none other than their e-commerce giant the AliBaba group, the third place in this market goes to the gaming company Tencent.

Companies though have faced some challenging aspects this year in terms of Covid19 and Chinese regulations have still stood strong among all this.


H/T: Reuters.

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