Chinese Tech Giants Tencent and Alibaba Saw Profits Plunge in 2nd Quarter

Is this the end of the 'golden age' for China's tech industry?

The Tencent headquarters in Shenzhen, in Guangdong Province, China, on May 26, 2021. Noel Celis/AFP via Getty Images

News Analysis

Declining revenues and mass layoffs at Tencent and Alibaba could mark the end of the “golden age” for China’s internet industry. The companies’ profits plunged in the second quarter of 2022, mainly caused by the decoupling of the U.S. and Chinese economies and by the market restrictions imposed by the Chinese Communist Party (CCP).