Chinese technology giant Tencent has bought a 5 percent stake in Melbourne-based Afterpay as it contends in U.S. markets with a push to ban Beijing-backed software from being used by U.S. officials.
Tencent’s Stake in Afterpay
Afterpay is a digital payment service that has gained popularity with millennials and Generation Z consumers.According to an October 2019 press release, Afterpay conducts “millions” of purchases each month working with over 30,000 businesses locally. It is also expanding into the United Kingdom and United States.
Tencent’s Chief Strategy Officer James Mitchell said that outside of China, the company was keen to invest in pioneering financial technology companies and Afterpay aligned “well with consumer trends developing globally.”
“We look forward to a deep and long-term business partnership between Tencent and Afterpay,” he said.
“But just as compelling about Reddit’s new owners is Tencent’s—and the CCP’s—access to the personal information of millions of Americans and other Westerners,” he said.
US Bill Against Chinese Espionage
In the United States, republican senators Ted Cruz (R-Texas) and Josh Hawley (R-Mo.) announced on April 30 they would be introducing a bill aimed at banning federal employees from using tech platforms that are subject to influence by the CCP.The Countering Chinese Attempts at Snooping Act of 2020 would ban officials from conducting business over any social media, smartphone application, and telecommunications technology that are “produced, operated, or hosted” by companies on the list.
The bill identified five Chinese tech companies Tencent, Huawei, ZTE, Alibaba, and Baidu. It recognises these companies will assist the CCP to engage in espionage via their products and gain “insight into the profiles, activity, or location of foreign users.”
Senator Cruz said, “Companies like Tencent and Huawei are espionage operations for the Chinese Communist Party, masquerading as telecom companies for the 21st century.”
Senator Hawley called Tencent “a glorified surveillance arm of the Chinese Communist Party.”
When questioned about security concerns, Afterpay told The Epoch Times via email that Tencent was a “significant fintech investor globally” and there was “nothing different here from a normal investment standpoint.”
“There is no board representation. It’s purely a financial investment,” a company spokesperson said.
What is Tencent Holdings?
Tencent is a Shenzhen-based conglomerate with a broad range of interests including in video gaming, entertainment, start-up investments, and supporting China’s push to develop its military industrial capabilities, according to the U.S. State Department. It is best known for its communication platforms WeChat and QQ.Its largest following is in China, where competitors Facebook, YouTube, Google, and WhatsApp are banned.
“At my annual China visa renewal:
Police officer: I saw you posted on social media about organising an event for journalists on the 8th
Me: I don’t think I did...
Me: *thinks, does he realise he saw that by surveilling my private messages and not on my public feed*.”