Red hot tensions between two Asian giants India and China is now taking a big toll upon Chinese interests in Singapore. Chinese rampant economic warfare has now turned Chinese companies into a global pariah, not just in India but across the world. Consider Singapore’s tech giant Sea’s recent decision to shun Chinese giant Tencent Holdings.
Sea wants to expand its global footprints. The e-commerce group has already launched its online platforms in Spain, France, India and Poland. However, Sea’s close ties with a Chinese firm can very well impede the company’s global ambitions. For instance, Sea’s subordinate e-commerce platform ‘Shopee’ recently faced resistance in India due to deep Chinese economic influence.
Sea scrambles to shun Chinese control
Now, Sea is avoiding that perilous route. Last March, Tencent had 23.3% voting rights in the Singaporean firm. Sea’s founder and CEO Forrest Li, along with Tencent, collectively holds 52% of the total voting power. Now, the company is making arrangements to cut Tencent’s voting share down to less than 10%. On the flip side, the CEO of the company would take control of 60% of the total voting rights.
As per a Nikkei Asia report, Sea’s market cap stood at over $180 billion at NYSE in September last year, which was by far the largest among Southeast Asia’s listed companies. Last year it launched an e-commerce service known as ‘Shopee’ in Mexico, Chile and Columbia, following its entry into Brazil in 2019. Sea is eying the Indian market too, and that’s why it is shunning Chinese influence rapidly.
Chinese influence impedes Sea’s global ambitions
As per Sea’s statement, recent changes in the company’s voting share are in the “best interests of the company.” Sea said in a statement, “As Sea has scaled significantly to become a leading global consumer internet company; it is in the best interests of the company in pursuing its long-term growth strategies to further clarify its capital structure through the contemplated changes.”
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This also shows that how tech firms across the globe are now prioritizing their interests in the Indian market over China. China’s red stocks speak volumes of China’s economic miseries. Investing in China is no longer a profitable business. So, the flourishing tech market of the world’s second-most populous nation—India—is now attracting global tech firms like never before.
TFI Global earlier reported how the Singaporean government is shunning Chinese investors in the Singaporean real estate market. Chinese investors were investing frantically in Singapore, which had led to rising property prices in the city-State.
This is Singapore, decoupling from China.