From play to power: china’s video games as instruments of soft power

1. Introduction

In the process of global digital transformation brought by globalization and the rapid development of technology, the Digital Silk Road (DSR) represents a significant evolution of China’s Belt and Road Initiative (BRI), extending its infrastructure ambitions into the digital realm. This initiative seeks to enhance digital connectivity and cooperation across continents, underscoring China’s ambition to secure a dominant position in the global digital economy. The DSR encompasses a broad spectrum of projects, including undersea cables, satellite networks, and e-commerce platforms, reflecting a comprehensive approach to fostering digital development across BRI participating countries (National Development and Reform Commission, Ministry of Foreign Affairs, & Ministry of Commerce of the People’s Republic of China, 2015).

At its core, the DSR is a testament to China’s foresight in recognizing the indispensable role of digital infrastructure in shaping the future landscape of international relations and economic development. By fostering digital corridors alongside the physical routes of the BRI, China aims to establish a new paradigm of connectivity, where data and digital services flow as freely as goods along ancient Silk Road caravans (National Development and Reform Commission, Ministry of Foreign Affairs, & Ministry of Commerce of the People’s Republic of China, 2015). This initiative not only underscores China’s ambition to claim a dominant stance in the global digital arena but also highlights its commitment to facilitating a more interconnected and digitally inclusive world. The significance of the DSR extends beyond its technological and economic dimensions; it serves as a potent instrument of China’s soft power, through which Beijing seeks to extend its influence by exporting its digital models, technological standards, and cultural content. As such, the DSR is emblematic of a broader strategy to shape global digital governance and norms, positioning China as a pivotal player in the international system.

Amidst the various components of the DSR, the global gaming industry emerges as a particularly interesting avenue for the dissemination of cultural values and soft power. In an era where digital culture increasingly shapes global perceptions and international relations, this paper embarks on an unprecedented exploration of video games as a novel and important source of soft power.

Footnote

1 Tencent, a leading Chinese conglomerate with significant investments in global gaming companies, exemplifies the strategic deployment of digital culture as an instrument of soft power (Creemers, 2017). This paper explores the intersection of Tencent’s gaming investments with the DSR, investigating how these activities contribute to the enhancement of China’s soft power and influence abroad. The rationale for focusing on Tencent stems from the company’s prolific role in the global digital economy and its strategic investments in the gaming sector, which serve as a microcosm of China’s broader ambitions under the DSR. By examining Tencent’s approach to global gaming investments, this study aims to shed light on the digital dimensions of China’s soft power strategy and its implications for international relations and cultural diplomacy.

This paper represents an unprecedented exploration into the categorization of video games as a potent source of soft power, shedding light on how Chinese gaming companies like Tencent are strategically leveraging digital entertainment to extend China’s cultural influence globally. By analyzing the integration of Chinese cultural elements into globally popular games and examining the international success of these titles, this study underscores the transformative potential of video games in the realm of international relations and cultural diplomacy. It highlights the innovative ways through which digital platforms can serve as vehicles for cultural exchange, offering a novel perspective on the mechanisms of soft power in the digital age. This analysis not only broadens the understanding of soft power dynamics but also positions video games as crucial instruments in the strategic dissemination of cultural values, thereby opening new avenues for research into digital culture’s role in global soft power strategies.

This investigation adopts a qualitative research methodology, centering on a case study analysis of Tencent’s gaming investments. This methodological approach facilitates an in-depth exploration of how Tencent’s activities under the DSR framework enhance China’s soft power and global influence, contributing to the understanding of the interplay between digital political initiatives and soft power in the context of international relations.

2. Soft power in the digital age

Joseph Nye’s conceptualization of soft power has profoundly shaped the discourse on international relations, emphasizing the power of attraction and persuasion over coercion (Nye, Citation 2004). 

In the digital age, the vectors of soft power have expanded, incorporating digital platforms and content as new mediums of cultural exchange and influence. Digital technology has transformed how cultural values and narratives are disseminated globally, enhancing the capacity of states to project their soft power beyond their borders through digital content, including films, music, and particularly, video games. Cultural diplomacy has traditionally encompassed the exchange of cultural artifacts, educational programs, and artistic performances as a means to foster mutual understanding between nations (Cull, Citation 2008).

The advent of the digital era has significantly broadened the scope of cultural diplomacy, integrating digital platforms as pivotal tools for engaging international audiences. Social media, streaming services, and online gaming have become contemporary arenas for cultural diplomacy, enabling a more direct and engaging connection with global audiences (Cull, Citation 2009).

2.1. The global gaming industry as a soft power tool

The global gaming industry, with its expansive reach and immersive nature, has emerged as a powerful medium for the expression of soft power. Video games, as interactive narratives, offer unique opportunities for cultural transmission and engagement. They encapsulate cultural values, historical narratives, and societal norms, making them potent tools for cultural diplomacy (Consalvo, Citation 2006). The industry’s global footprint allows for the widespread dissemination of these narratives, impacting perceptions and fostering cultural affinity among players worldwide.

The DSR, an integral component of China’s Belt and Road Initiative, aims not only to develop digital infrastructure but also to promote Chinese digital services and content across the globe (National Development and Reform Commission, Ministry of Foreign Affairs, & Ministry of Commerce of the People’s Republic of China, 2015). This initiative reflects China’s strategic use of digital technology to extend its soft power. Through the export of digital cultural products, including video games developed by conglomerates like Tencent, the DSR serves as a mechanism for embedding Chinese cultural narratives into the global digital landscape. This strategic dissemination aligns with Nye’s framework of soft power, leveraging the attractiveness of cultural products to enhance China’s global influence (Nye, Citation 2004).

Examining Tencent’s investments in the global gaming industry through the theoretical lenses of soft power and cultural diplomacy offers insights into the practical mechanisms of digital influence. Soft Power is the ability to shape the preferences of others through appeal and attraction rather than coercion. Tencent’s strategic positioning in the gaming market not only amplifies China’s economic reach but also its cultural influence, utilizing gaming as a platform for projecting soft power on a global scale. In the case of viewing gaming as an instrument of soft power, influence can be measured by several indicators, including the global reach and popularity of Tencent’s games, the incorporation of Chinese cultural elements in these games, and the positive perception and increased cultural affinity towards China among global audiences. This analysis underscores the convergence of economic strategy, cultural exchange, and digital technology in shaping contemporary international relations, as evidenced by the widespread adoption and cultural integration of Tencent’s gaming portfolio, which will be further examined in this paper.

Positive perception in this context refers to a favorable view or appreciation of Chinese culture, traditions, and values as represented through gaming narratives, aesthetics, and themes. Cultural affinity toward China involves a sense of connection or identification with these cultural elements, potentially leading to more favorable attitudes toward China. Other indicators, such as the global reach and popularity of Tencent’s games, demonstrate the scale at which these games capture audience engagement worldwide. High global reach signifies that these games—and the cultural narratives within them—are accessible to diverse audiences, expanding the potential for cultural exchange. The incorporation of Chinese cultural elements is another vital indicator, as it reflects the degree to which games embed Chinese stories, characters, or traditional aesthetics. The more deeply these elements are integrated into the game’s core experience, the more likely they are to cultivate cultural affinity by immersing players in a distinctly Chinese narrative environment.

Measuring these indicators could involve a blend of qualitative and quantitative methods: for instance, survey-based analysis of player attitudes toward Chinese culture before and after gameplay, sentiment analysis of social media discourse surrounding Chinese-themed content, and in-game engagement metrics with culturally specific elements. Evaluating these indicators can reveal not only the popularity of Chinese-themed games but also the cultural impact they may exert on global audiences. By fostering engagement with Chinese cultural elements through digital platforms, these games do more than entertain—they subtly influence player perceptions and preferences. Such measurements underscore how gaming has evolved into a platform for cultural exchange, shaping how international players experience and interact with Chinese culture. To fully grasp the dynamics of this influence, it is essential to consider the deeper theoretical implications.

While Nye’s concept of soft power provides a crucial foundation for understanding the cultural and political influence exerted through digital platforms, it is essential to complement this framework with a constructivist perspective to fully grasp the dynamics at play. Constructivism, which emphasizes the role of social interactions and collective identities in shaping international relations (Berenskoetter, Citation 2017), provides valuable insights into how digital platforms like video games can construct and disseminate cultural narratives. Through the lens of constructivism, the impact of Tencent’s games extends beyond mere entertainment; these games become tools for constructing social realities and influencing the global digital discourse.

Constructivist theory posits that the international system is not only shaped by material power but also by ideational factors such as beliefs, identities, and norms. Tencent’s strategic integration of Chinese cultural elements into its gaming portfolio can be seen as an effort to shape global perceptions and identities in ways that align with Chinese values and norms. By embedding Chinese cultural narratives into globally popular games, Tencent actively participates in the construction of a shared cultural understanding that enhances China’s soft power. This approach aligns with the broader objectives of the Digital Silk Road, where digital technology and cultural diplomacy converge to project China’s influence on the global stage.

At the end of this section, it is important to note that this paper treats Tencent as an extension of China, intermingling the two entities, because the relationship between private enterprises and the state in China is distinct from that in other countries, particularly Western nations. Politically, private enterprises in China, including Tencent, are required to have an internal committee or branch of the Chinese Communist Party (CCP) if three or more CCP members are among their employees (Marquis and Mao, 2022). In 2016, Tencent’s CCP branch was recognized as one of the top one hundred such branches in the country. It provides communication and education platforms for CCP members, including a dedicated activity center of more than 6,000 square meters, with over 1 million yuan allocated annually for CCP activities. According to a 2017 report by Sina Tech, Tencent employed over 7,000 CCP members, making up approximately 23% of its workforce, with more than 60% of these members being core technical personnel (People’s Daily, 2016). The Chinese government also sees Tencent as one of its national champion companies (Curtis & Klaus, Citation 2024).

Financially, Tencent is also under significant control by the Chinese government. The government has acquired a ‘golden share’ in a domestic subsidiary of Tencent, which allows it to access online data and monitor business activities (Ye, Citation 2023). Wangtou Zhicheng, a government-controlled entity, owns a 1% stake in Shenzhen Yayue Technology, a Tencent subsidiary, after investing 600,000 yuan. This practice of acquiring minority stakes with special rights, known as ‘golden shares’, is also seen in other data-rich companies like ByteDance and Alibaba Group. These golden shares often come with additional rights, such as a board seat, enabling the government to influence and oversee these companies’ operations. Given these political and financial controls, it is justified to consider Tencent as part of China’s broader strategic apparatus in this paper, particularly in the context of projecting soft power and shaping international perceptions.

3. Methodology

To explore the intricate dynamics of how Tencent’s global gaming investments enhance China’s soft power through the Digital Silk Road initiative, this study adopts a qualitative case study approach. This methodological choice is grounded in the complexity and depth of the research question, which necessitates an in-depth exploration of qualitative data to understand the mechanisms of soft power and cultural influence in the digital realm. Focusing on Tencent allows for a concentrated examination of a key player in the global gaming industry, whose extensive reach and strategic investments provide a rich context for analyzing the interplay between digital cultural exports and soft power. The case study method is particularly suited to this task, as it facilitates a detailed investigation into specific instances of Tencent’s international engagements, enabling the identification of patterns and insights that might not be apparent through quantitative analysis alone.

The primary data sources for this study comprise academic literature, industry reports, financial data, and policy documents. Academic literature offers theoretical frameworks and contextual background, grounding the study in existing scholarly discourse on soft power, cultural diplomacy, and the digital economy. Industry reports provide up-to-date insights into the global gaming market, trends, and the strategic positioning of major players like Tencent. Financial data, including investment patterns and revenue streams, illuminate the economic dimensions of Tencent’s gaming ventures, shedding light on the scale and impact of its global operations. Policy documents, particularly those related to the Digital Silk Road and China’s cultural export strategies, offer crucial information on the governmental and regulatory contexts within which Tencent operates. Collectively, these sources furnish a comprehensive dataset for analyzing Tencent’s role in projecting China’s soft power.

The analytical framework of this study employs thematic analysis and case study comparison to dissect and interpret the data. Thematic analysis allows for the identification of recurring themes and narratives that emerge from Tencent’s global gaming initiatives, facilitating an understanding of how these endeavors contribute to China’s soft power. Through comparing different case studies of Tencent’s investments and engagements across various markets, this approach also enables an assessment of the consistency and variability in the company’s strategies and their effectiveness in enhancing China’s cultural influence abroad. This methodology, combining thematic analysis with case study examination, contributes to the understanding of the role of digital cultural exports in the contemporary landscape of international relations and soft power.

The thematic analysis in this study focuses on several key components to elucidate the ways in which Tencent’s gaming initiatives contribute to China’s soft power and align with constructivist principles. Firstly, the analysis examines the incorporation of Chinese cultural elements in Tencent’s games, identifying themes such as historical narratives, mythological references, and traditional values. This allows us to understand how these cultural signifiers are strategically embedded to shape global perceptions and promote cultural affinity towards China. Secondly, the thematic analysis considers the narratives of competitiveness and excellence promoted through Tencent’s involvement in international eSports, highlighting how these themes resonate with Chinese cultural values and enhance China’s image as a global leader in digital entertainment. Thirdly, the analysis explores the portrayal of social interactions within these games, assessing how they reflect and propagate Chinese social norms and ideologies. By systematically identifying and interpreting these recurring themes, the study connects these cultural exports to the broader framework of soft power, demonstrating how Tencent’s digital platforms serve as instruments for projecting China’s influence. Furthermore, from a constructivist perspective, this thematic analysis reveals how digital games are not just entertainment products but also tools for constructing social realities and reinforcing collective identities aligned with Chinese values.

4. China’s gaming industry and tencent’s emergence as a global powerhouse

China’s gaming industry has experienced meteoric growth over the last two decades, becoming one of the largest markets for digital games worldwide (Lopes, Citation 2023). This rapid expansion is attributed to the country’s increasing internet penetration, a burgeoning middle class, and the strategic fostering of digital entertainment sectors by the government. Tencent, founded in 1998, has played a pivotal role in this transformation. Starting with the instant messaging service QQ and later WeChat, Tencent expanded into online gaming, becoming not only China’s largest company in the sector but also a global leader. Its success is partly due to its vast ecosystem of social media, e-commerce, and streaming services, which has facilitated cross-platform promotion and integration of gaming content (Fannin, Citation 2019).

4.1. Tencent’s global gaming investments: history and scope

Tencent Holdings Limited, founded in 1998 in Shenzhen, China, by Ma Huateng (Pony Ma) and his associates, has grown from a modest technology company into a colossal multinational conglomerate, touching on various facets of the digital and entertainment worlds. Initially gaining traction through its messaging service, QQ, Tencent expanded its reach into numerous sectors, including social networking, music, web portals, e-commerce, mobile games, and, notably, the global gaming industry (Negro, et al. 220). The company’s pivotal moment came with the launch of WeChat in 2011, a super app that has become integral to daily life in China, providing services from messaging and social media to mobile payment and beyond (Peng, Citation 2017). Tencent’s foray into the gaming sector was strategic and visionary, capitalizing on the burgeoning market for online gaming both domestically and internationally. By acquiring Riot Games in 2011, the developer of the wildly popular League of Legends, and investing in a slew of other gaming companies like Epic Games and Supercell, Tencent not only diversified its entertainment offerings but also established itself as a global leader in the gaming industry (Cao, Citation 2022).

The significance of Tencent’s investments in gaming transcends mere corporate expansion; it aligns closely with China’s broader soft power strategy. Through its gaming ventures, Tencent has managed to export Chinese culture and values internationally, embedding them within highly engaging and globally popular gaming content (Su & Flew, Citation 2021). Games developed or owned by Tencent often incorporate elements of Chinese mythology, history, and philosophical thought, offering players worldwide a glimpse into Chinese culture and perspectives (Xia et al., 2023). This cultural dissemination via digital entertainment forms a crucial pillar of China’s soft power, allowing it to influence global cultural narratives and perceptions subtly but effectively. As such, Tencent’s evolution from a regional tech startup to a global powerhouse in digital entertainment exemplifies the convergence of corporate ambition with national strategic interests, underscoring the company’s role in advancing China’s soft power through the universal medium of gaming.

Tencent’s approach to global gaming dominance is marked by a series of calculated moves that strategically position the company at the nexus of innovation, market influence, and cultural penetration. This strategy is not merely about financial investment; it is about cultivating a diverse gaming ecosystem where Tencent can exert significant soft power through digital entertainment. By acquiring Riot Games, Tencent didn’t just gain a popular game; it acquired a platform for global cultural influence through esports (Cao, Citation 2022). Similarly, its stake in Epic Games opened avenues not just in gaming but in technology transfer, as Unreal Engine powers countless games worldwide, including those in Tencent’s portfolio.

These investments reflect a broader vision where Tencent positions itself as a central hub in the gaming world, capable of bridging East and West gaming cultures. This is particularly significant as gaming becomes a more prominent cultural medium, where narratives, values, and social interactions transcend geographical boundaries. Tencent’s portfolio strategy also indicates an understanding of gaming’s varied demographics, from hardcore gamers engaged in League of Legends esports to casual players of Clash of Clans. Each investment expands Tencent’s reach across these diverse segments, allowing it to capture a larger share of the global digital entertainment market and influence the gaming industry’s future direction. Tencent’s journey in the global gaming industry is characterized by strategic acquisitions and investments aimed at consolidating its presence across different markets and gaming genres.

4.2. The concept of the digital Silk Road and its objectives

The DSR, a key component of China’s broader Belt and Road Initiative, strategically positions China as a central architect of the future global digital landscape. By spearheading the development of digital infrastructure—ranging from fiber optic networks to 5 G telecommunications—the DSR extends China’s technological and economic influence far beyond its borders (Hussain et al., Citation 2023). This ambitious endeavor not only aims to enhance digital connectivity across continents but also reflects China’s aspiration to lead in digital innovation and governance. The construction of such infrastructure facilitates a new era of global digital connectivity, enabling China to play an indispensable role in shaping the digital experiences of millions worldwide. As China exports its digital technologies and sets global benchmarks, especially in telecommunications and AI, the DSR challenges established norms and introduces Chinese standards into the international tech ecosystem. This export of technology is not merely an economic activity; it’s a calculated move to weave Chinese technological norms and innovations into the fabric of global digital culture.

Beyond infrastructure, the DSR emphasizes the promotion of digital trade through Chinese e-commerce platforms and payment systems, aiming to integrate Chinese digital commerce solutions into global markets (Al Shaher et al., Citation 2023). The initiative’s focus on smart city technologies represents another facet of China’s strategy, demonstrating its urban digitalization model to the world. These components of the DSR serve to expand China’s economic influence while showcasing its capacity for innovation and governance in the digital age. However, it’s the promotion of Chinese models of internet regulation and digital governance that perhaps most directly connects to the concept of soft power within the DSR framework (Ghiasy & Krishnamurthy, Citation 2020). By advocating for governance models that align with its domestic policies, China seeks to influence the global discourse on cyber sovereignty, internet freedom, and digital rights. Specifically, China promotes a state-centric approach to digital governance, wherein the national government has absolute authority to regulate and control internet access and digital content within its borders. This contrasts with the more decentralized and open models favored by many Western countries, which emphasize the free flow of information and minimal state interference. China’s push for this model is part of its broader strategy to shape international norms and standards, positioning itself not only as a leader in digital technology but also as a key player in setting the rules and regulations that govern the digital sphere.

Video games, with their ability to convey stories, cultures, and values, emerge as a potent tool for soft power. Tencent’s portfolio, featuring games like League of Legends and Fortnite, goes beyond entertainment, serving as platforms for cultural diplomacy. These games, often characterized by their diverse and inclusive worlds, offer players globally a glimpse into alternative narratives and perspectives, potentially aligned with Chinese cultural values and worldviews. By leveraging its position in the gaming industry, China can influence global youth culture and preferences, shaping perceptions and fostering a more favorable image of China internationally. This influence is amplified through eSports and gaming tournaments, where Chinese companies often play significant roles as sponsors and organizers, further embedding Chinese influence into global digital culture.

The DSR’s emphasis on digital infrastructure and connectivity further amplifies this soft power strategy by ensuring Chinese games and digital services are accessible worldwide, particularly in developing regions targeted by the initiative (Ly, Citation 2020). The development of digital payment systems and e-commerce platforms under the DSR umbrella also facilitates the global distribution and monetization of Chinese-developed games, making them integral to the digital ecosystems of countries within the DSR’s scope. This strategic distribution ensures that Chinese games, and by extension Chinese cultural content, are not only available but also prominent in the digital lives of millions outside China.

Thus, the integration of games into the DSR framework represents a sophisticated blend of economic strategy and cultural diplomacy. Through its investments in the global gaming industry, China utilizes Tencent’s digital entertainment empire as a vibrant facet of its soft power, extending its influence through the captivating and interactive realm of video games. This strategy highlights an innovative approach to soft power in the twenty first century, where digital platforms become battlegrounds for cultural influence and international diplomacy. As such, the DSR, with its digital games’ component, underscores China’s ambition to not only lead in technological innovation but also to shape the global cultural landscape, leveraging the universal appeal of video games to enhance its global image and influence, thereby redefining the dynamics of cultural exchange and soft power in the digital age.

However, the DSR’s objectives also raise questions about the export of digital authoritarianism and the implications for global digital rights and governance (Cheney, Citation 2021). As China promotes its model of internet regulation and governance through the DSR, there is a potential for these practices to influence other countries’ approaches to digital governance, raising concerns about privacy, freedom of expression, and cyber sovereignty.

5. Tencent’s global gaming investments: a case study

In the rapidly evolving landscape of the global gaming industry, Tencent’s strategic investments stand as a testament to the company’s ambition to redefine the boundaries of digital entertainment and exert its influence across the globe. This section delves into a comprehensive case study of Tencent’s global gaming investments, expanding upon the previous mentioned connection between the company and Chinese soft power strategy. The case study aims to reveal the nature of the company’s investment strategy, its significant acquisitions and partnerships, and the subsequent impact on global gaming trends. By analyzing Tencent’s pivotal role in promoting Chinese culture through its gaming portfolio and localizing content for international markets, the research explores how these endeavors not only shape global perceptions of the gaming industry but also serve as a sophisticated tool of China’s soft power and digital diplomacy.

5.1. Investment strategy and global reach

Tencent’s investment strategy within the global gaming industry exemplifies a sophisticated blend of economic ambition and cultural diplomacy, critically aligned with China’s broader soft power push. By meticulously selecting its acquisitions and partnerships, Tencent has not only expanded its dominance in the digital entertainment sphere but also facilitated the international propagation of Chinese culture, values, and technological standards, thereby contributing to the soft power objectives of China. It can be observed that Tencent is specifically acquiring companies capable of implementing Chinese culture into their products, thereby projecting China’s power through these cultural exports.

The acquisition of Riot Games and the strategic stake in Epic Games were not mere financial investments but calculated moves to gain a foothold in key segments of the global gaming market (Lopez, 2023). League of Legends, developed by Riot Games, and Fortnite, from Epic Games, are more than just games; they are cultural phenomena that shape gaming communities worldwide. Tencent’s ownership and influence over these titles grant it considerable leverage in shaping the content, narrative, and community engagement strategies, allowing the infusion of Chinese cultural elements and gaming philosophies into global gaming discourse. Tencent, NetEase, and MiHoYo collectively hold ownership or stakes in some of today’s most popular video games, underscoring the significant impact and influence Chinese firms wield in the video game sector and their dealings with international gaming entities (Lopez, 2023). This subtle integration serves as a vehicle for cultural exchange, enhancing China’s cultural attractiveness and fostering a positive image of Chinese innovation.

Tencent’s investment in Supercell represents a strategic expansion into the mobile gaming sector, acknowledging the global shift towards mobile platforms (Fannin, Citation 2019). Mobile games, given their accessibility and widespread popularity, serve as an effective medium for cultural dissemination. Through games like Clash of Clans, Tencent not only captures significant market share but also introduces global audiences to gaming experiences that reflect a blend of Eastern and Western gaming traditions (Lopez, 2023). This fusion promotes an important understanding and appreciation of Chinese cultural motifs, aligning with the soft power strategy of enhancing China’s global image through cultural export. Table 1 below encapsulates key milestones and strategic moves by Tencent in the gaming sector.

Table 1. Tencent key investment in the gaming sector.

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Tencent’s investments across various gaming companies worldwide facilitate a cross-pollination of ideas, technologies, and best practices. This global network of partnerships and investments positions Tencent—and by extension, China—as a central node in the international gaming industry’s innovation ecosystem. By influencing game development practices, Tencent propagates Chinese technological standards and gaming philosophies globally. This not only showcases China’s technological prowess but also aligns with the soft power strategy of setting global standards that reflect Chinese interests and values. The promotion of Chinese-developed game engines, monetization models, and digital distribution platforms exemplifies this strategy, subtly shaping the global digital entertainment landscape in ways that favor Chinese technological norms and standards.

5.2. Impact on global gaming trends

Tencent’s strategic investments in the global gaming industry have significantly influenced various aspects of gaming (Wong & Meng-Lewis, Citation 2023), from development and distribution to monetization models, aligning with China’s broader soft power objectives. Through its acquisition of key gaming companies and strategic partnerships, Tencent has not only expanded its global footprint but has also played a pivotal role in shaping gaming trends worldwide, demonstrating the convergence of corporate strategy and national soft power ambitions.

Game Development: Tencent’s acquisition of Riot Games and a significant investment in Epic Games have propelled the company to prominence on the global stage, cementing its position as a major player in the international gaming industry (Simon, Citation 2021). League of Legends and Fortnite, both under Tencent’s umbrella, have set benchmarks for their respective genres, MOBA and battle royale, influencing countless other titles. By driving the popularity of these genres, Tencent has indirectly set standards for game mechanics, competitive play, and community engagement, practices that have been emulated by developers worldwide. This influence extends to the promotion of eSports, with League of Legends becoming a cornerstone of the competitive gaming scene, further popularized through Tencent’s platforms and tournaments. This not only boosts the global eSports economy but also elevates Chinese cultural elements and technological prowess on the international stage, contributing to China’s soft power reach.

Distribution: Tencent has revolutionized game distribution through its WeChat and QQ platforms, integrating gaming with social media to create a seamless user experience (Coe & Yang, Citation 2022). This model of social gaming has influenced global gaming companies to consider social platforms not just as marketing tools but as integral parts of the gaming ecosystem. Tencent’s approach to distribution also includes cross-platform play, notably with Fortnite, enhancing player engagement across devices and contributing to the game’s global success. A primary example of this influence is Activision Blizzard’s ‘Call of Duty: Mobile’, developed in collaboration with Tencent’s Timi Studios. This game exemplifies the successful application of Tencent’s distribution strategies, leveraging social connectivity to enhance player engagement. By facilitating login and social interactions through existing social media networks, Call of Duty: Mobile mirrors Tencent’s approach with WeChat and QQ, emphasizing the critical role of social networks in game distribution and community building. By facilitating these distribution models, Tencent not only capitalizes on its vast user base but also models a framework for global digital engagement that echoes China’s vision for digital connectivity and influence.

Monetization Models: Tencent has been at the forefront of innovating monetization strategies in the gaming industry. The company’s success with microtransactions and in-game purchases, particularly in games like Honor of Kings, has set a precedent for freemium models globally (Ho, Citation 2021). Following Tencent’s acquisition of a majority stake in Supercell, Clash Royale adopted a freemium model with microtransactions (Johnson & Brock, Citation 2020). This strategy involves offering players the ability to purchase in-game items and currency, facilitating enhanced gameplay while generating revenue. The model strikes a balance between maintaining gameplay fairness and optimizing revenue generation, a testament to Tencent’s pioneering approach to monetization within the gaming sector. This approach has proven highly lucrative and has been adopted by numerous Western developers, shifting the industry’s revenue model from upfront purchases to continuous, engagement-driven earnings. Through these monetization strategies, Tencent not only accrues significant global revenue but also demonstrates Chinese innovation in digital commerce, furthering the country’s soft power by showcasing its capability to lead in creating sustainable, consumer-friendly revenue models in the digital age.

The impact of Tencent’s investment strategy on global gaming trends reflects a broader narrative of China’s engagement with the world through soft power, leveraging cultural exports to shape global perceptions and standards. This strategic alignment of corporate objectives with national soft power goals underscores the symbiotic relationship between China’s commercial enterprises and its broader geopolitical ambitions, illustrating how digital entertainment has become a frontier for cultural diplomacy and international influence in the twenty first century.

5.3. Tencent’s instillation of Chinese culture in its games

Tencent’s integration of Chinese cultural elements into its gaming portfolio exemplifies a sophisticated fusion of digital entertainment and cultural diplomacy, marking a strategic endeavor to project China’s cultural heritage globally. This approach not only serves the commercial objectives of captivating a worldwide audience but also aligns with the broader soft power ambitions of China, aiming to enhance its cultural influence and image on the international stage.

‘Honor of Kings’, and its international adaptation, ‘Arena of Valor’, exemplify Tencent’s commitment to promoting Chinese culture through gaming. While ‘Arena of Valor’ is a Westernized adaptation that removes many Chinese cultural elements, ‘Honor of Kings’ has recently been released to Western markets with its Chinese cultural themes intact, marking a shift toward broader acceptance of culturally specific content. The game features numerous characters inspired by historical Chinese figures and deities, such as the character Luban Seventh Master, modeled after the legendary craftsman Lu Ban (William, Citation 2023). This character not only honors China’s ancient tradition of innovation and craftsmanship but also educates international players about influential figures in Chinese history. Such elements enhance China’s cultural attractiveness and foster a deeper appreciation of its contributions to global civilization.

This incorporation of cultural heritage into gaming does more than entertain; it serves as a soft power tool, allowing players worldwide to engage with China’s rich narratives and historical depth. Similarly, the success of ‘Black Myth: Wukong’, which draws directly from Chinese mythology, demonstrates the resonance of culturally rooted narratives with global audiences (Yuan & Xiang, 2024), diverging from the traditionally Western-centric approach in popular games.

Similarly, Moonlight Blade’s immersion into the world of Wuxia literature exemplifies Tencent’s endeavor to globalize the allure of Chinese martial arts and philosophical ideals. Set up in one of China’s most famous novelists Gu long’s worlds, the game’s dedication to authentic Wuxia aesthetics—from its landscapes to story arcs—introduces players to a cultural realm where honor, martial prowess, and a quest for justice prevail. This not only enriches the gaming experience with uniquely Chinese narratives but also aligns with soft power objectives by showcasing the universal values and moral dilemmas explored in Wuxia culture. Through Moonlight Blade, Tencent not only celebrates traditional Chinese values but also encourages global audiences to explore and engage with Chinese cultural content, thereby elevating China’s cultural standing on the world stage. Together, these titles highlight a growing receptiveness to Chinese cultural content and indicate a shift in global gaming toward a more inclusive representation of diverse cultural traditions.

Before Tencent became the largest institutional shareholder of Epic Games, Fortnite—a global phenomenon in the battle royale genre—had little in the way of direct Chinese cultural elements and characters. However, following Tencent’s acquisition of a significant stake in Epic Games, Fortnite began to incorporate more aspects of Chinese culture into its vibrant and ever-expanding universe. Notably, the introduction of outfits such as the Monkey King (Sun Wukong from the Journey to the West), came out in 2018, and Gan (a revered Qing Dynasty warrior), came out in 2020, represent a clear infusion of Chinese historical and mythological elements into the game. These additions did not originally exist in Fortnite’s early iterations but were introduced as Tencent solidified its influence within Epic Games.

Furthermore, Fortnite has incorporated events and elements that celebrate Chinese culture, significantly enhancing its role in the spread of soft power. Notable examples include the celebration of Chinese New Year within the game, introducing themed skins, decorations, and even in-game events that draw heavily on Chinese traditions and aesthetics. Additionally, the introduction of in-game emotes, such as the Tai Chi dance, offers players around the world a glimpse into Chinese martial arts and philosophical traditions. These inclusions go beyond mere cosmetic changes; they offer a platform for cultural education and exchange, making Chinese culture a part of players’ gaming experiences. This strategic inclusion of Chinese cultural themes not only diversifies the game’s appeal but also serves as an intriguing example of how Tencent leverages its investments to promote Chinese culture globally. Through such subtle integrations, Tencent utilizes its gaming platforms and content to extend China’s soft power, engaging international audiences with Chinese heritage in an interactive and contemporary format.

Tencent’s activities in the global gaming industry go beyond corporate success; they represent a deliberate strategy to advance Chinese culture and extend China’s soft power. The integration of Chinese cultural elements into games like ‘Honor of Kings’ and ‘Arena of Valor’ is a calculated effort to influence global perceptions and foster cultural affinity towards China. This intentional cultural dissemination aligns with Joseph Nye’s concept of soft power, which emphasizes shaping the preferences of others through appeal and attraction rather than coercion. Tencent’s involvement in international eSports, such as hosting major tournaments for ‘League of Legends’, further showcases Chinese organizational prowess and promotes cultural values of competitiveness and excellence. These events often feature Chinese branding and cultural motifs, embedding Chinese culture into the global gaming community. By leveraging its extensive gaming portfolio, Tencent acts as a cultural ambassador, promoting Chinese culture through engaging digital experiences. This strategy aligns with the broader objectives of the Digital Silk Road, which aims to enhance China’s digital influence globally. Additionally, Tencent’s close ties with CCP and the government’s control over key decisions fit well with the CCP’s strategic goals, including the Belt and Road Initiative. The CCP’s influence ensures that Tencent’s global activities are aligned with national objectives, using digital platforms to advance China’s cultural and political influence. Thus, Tencent’s actions illustrate the convergence of economic strategy, cultural exchange, and digital technology, demonstrating how digital platforms can be used intentionally to advance Chinese culture and soft power on the international stage. This is distinct from simple corporate success as it reflects a coordinated effort to achieve national strategic objectives.

5.4. The reception

The global reception to China’s strategic infusion of its culture through video games as a mechanism of soft power reveals a complex landscape of impact and engagement. Analytically, the effectiveness of this strategy can be measured through several lenses: player engagement with culturally specific content, the international commercial success of these games, and the public discourse surrounding China’s cultural narratives in the digital realm. Games like Genshin Impact and Honor of Kings have not only achieved significant commercial success globally but have also introduced millions of international players to elements of Chinese culture, mythology, and history (Lopez, 2023). This indicates that video games are a viable medium for soft power projection.

The global reception of Chinese video games and Chinese invested games, epitomized by titles such as Honor of Kings and Fortnite, unequivocally demonstrates their success in disseminating Chinese culture and underscores their efficacy as soft power instruments. This success is evidenced by their commercial triumphs across diverse global markets, highlighting not only financial gains but also the widespread cultural appeal and acceptance of these games. For example, in 2018, coinciding with its release on the Nintendo Switch, Fortnite’s player count soared to 125 million. The first half of 2018 saw Fortnite Battle Royale’s monthly revenue reaching into the hundreds of millions of dollars, with SuperData Research estimating the total 2018 earnings at around $2.4 billion. By the close of 2019, Fortnite’s total revenue had surpassed $9 billion. Fortnite became one of the most popular games in the world (Clark, Citation 2021; Statt, Citation 2018: Molla, Citation 2018). Tecent’s purchase of the Riot Games has also brought a tremendous amount of profit to the company, specifically from League of Legends (Cheung & Fung, Citation 2016). Tencent’s Arena of Valor, has also gained immense popularity worldwide, establishing itself as a leading mobile game. Its success is further underscored by the numerous international tournaments it has hosted, which have significantly contributed to its stature within the global eSports community. These competitions have not only highlighted the game’s competitive appeal but also fostered a sense of unity among players and fans across various regions, reinforcing Arena of Valor’s impact on the eSports landscape (Ho, Citation 2021). Furthermore, the deep cultural engagement and critical acclaim these games have garnered reflect a significant achievement in cultural exchange, fostering an international community of players who not only consume but also celebrate Chinese mythology, history, and philosophical ideals.

As more people around the world purchase and engage with Chinese games and Chinese-invested games, a greater number of individuals are being exposed to Chinese culture. This increased exposure has the potential to significantly amplify China’s cultural influence globally. While the exact amount of influence exerted through the soft power of games is a subject that requires further study, it is clear that this medium plays a crucial role in cultural dissemination. This paper acknowledges the limitations in fully quantifying and assessing the impact of this soft power, recognizing that comprehensive analyses and longitudinal studies are needed to better understand the extent and nuances of this influence.

5.5. Beyond Tencent and its games

While Tencent stands as a prominent example of a Chinese company leveraging the global gaming industry to enhance China’s soft power, it is not alone in this endeavor. Another notable example is miHoYo, the developer behind Genshin Impact, a game that has achieved international acclaim and significantly contributed to the dissemination of Chinese culture through digital entertainment (Cai et al., Citation 2022). Genshin Impact is an open-world action role-playing game that, while not overtly promoting Chinese culture in the same manner as Tencent’s titles, subtly incorporates elements of Chinese aesthetics, mythology, and philosophy into its world-building and character design, thereby contributing to the global spread of Chinese soft power.

Genshin Impact introduces players to Teyvat, a world rich in diverse cultures and histories reminiscent of various real-world counterparts, including Chinese. The region of Liyue, for example, is heavily inspired by traditional Chinese landscapes and architectural styles, and its storyline incorporates themes and philosophies that draw from Chinese culture. This not only showcases the beauty and depth of Chinese heritage but also engages players in a narrative that respects and reflects Chinese values and storytelling traditions. Through its captivating gameplay and storytelling, Genshin Impact serves as a bridge for cultural exchange, inviting players from around the world to explore and appreciate narratives inspired by Chinese culture.

Furthermore, miHoYo’s approach to internationalization, much like Tencent’s, involves careful localization and cultural adaptation, ensuring that Genshin Impact resonates with a global audience while retaining its cultural roots (Cai et al., Citation 2022). The game’s success, evidenced by its impressive download numbers and revenue, highlights the potential of digital games as a platform for cultural diplomacy and soft power projection. By creating an engaging and widely accessible game that incorporates Chinese cultural elements, miHoYo has contributed to the broader narrative of China as a source of not only technological innovation but also rich cultural content.

Beyond Tencent and miHoYo, a host of other Chinese gaming companies and studios are utilizing digital entertainment as a platform for spreading Chinese culture globally, contributing to China’s soft power. Companies like NetEase and Perfect World, alongside Lilith Games, are notable examples, each embedding elements of Chinese heritage and mythology into their games (Lopez, 2022). These efforts align with a broader strategy of cultural exchange and diplomacy, where the universal appeal of gaming introduces international audiences to diverse aspects of Chinese culture.

The use of game platforms to promote cultural narratives carries significant ethical implications, particularly when these platforms are leveraged to advance national strategic objectives. This practice raises questions about the influence of state actors on global digital content and the potential for cultural manipulation. As seen with Tencent, the integration of Chinese cultural elements into popular games and the company’s alignment with CCP goals illustrate a coordinated effort to shape global perceptions. This intentional cultural dissemination, while effective in enhancing soft power, also highlights the need for robust global governance frameworks to ensure that such practices are conducted transparently and ethically. Obreja (Citation 2024) argues that video games function as social institutions, influencing ideologies and societal norms. This perspective underscores the importance of regulating the content and intentions behind such digital platforms to prevent the monopolization of cultural narratives. This is particularly concerning in an interconnected world where digital platforms have far-reaching influence on public opinion and cultural norms (Dijck et al., 2018). Moreover, unchecked state influence on digital platforms can undermine trust in these technologies, leading to skepticism and resistance among global audiences. Establishing international guidelines and ethical standards for digital governance is crucial to safeguard against the misuse of digital platforms for political or cultural domination. These measures would help ensure that the global digital space remains open, diverse, and respectful of different cultures, fostering an environment where cultural exchange can thrive without coercion.

6. Conclusion

The comprehensive analysis of Tencent’s strategic investments in the global gaming industry underscores the sophistication with which the company has leveraged digital entertainment to bolster China’s soft power and extend its cultural reach worldwide. Through a meticulous integration of Chinese cultural motifs, characters, and narratives—drawn from rich mythological and historical sources—into globally acclaimed games, Tencent has not only showcased Chinese culture but also facilitated a form of digital cultural diplomacy. The introduction of culturally significant elements like the Monkey King (Wukong) and Qing Dynasty warrior (Gan) outfits in Fortnite, following Tencent’s major investment in Epic Games, exemplifies a concerted effort to infuse Chinese culture into the fabric of a globally celebrated game. The celebration of Chinese New Year and the inclusion of Tai Chi emotes in Fortnite further highlight Tencent’s commitment to embedding Chinese culture in digital content, making it accessible and engaging for a global audience.

This strategic dissemination of culture through gaming aligns with the objectives of the Digital Silk Road, broadening the scope of China’s soft power beyond traditional infrastructure to the realms of digital technology and culture. Tencent’s endeavors mirror and amplify China’s aspirations to influence global digital technology standards, e-commerce, and digital governance through a uniquely engaging soft power lens. This shift in cultural strategy also reflects China’s broader foreign policy evolution from assertive ‘wolf warrior’ diplomacy to a more cooperative and culturally oriented approach (Yuan, Citation 2024). By positioning itself as a cultural partner through digital mediums, China projects an image of collaboration and influence, reinforcing its strategic goal to shape international perceptions and norms through digital engagement.

Given the effectiveness of this approach, it is recommended that policy frameworks supporting the international expansion of digital content include provisions for cultural exchange and engagement. Governments and corporations alike should recognize the value of digital entertainment not just as a commercial venture but as a platform for cross-cultural dialogue and understanding. Policies encouraging ethical and respectful representation of cultures, coupled with initiatives aimed at fostering global collaboration in game development, could further enhance the impact of digital soft power. Additionally, as digital platforms become increasingly influential in shaping cultural perceptions, there is a need for policies that ensure these spaces promote diversity, inclusivity, and mutual respect among cultures.

This case study’s findings resonate with broader digital soft power initiatives under the Digital Silk Road, where the projection of Chinese culture and values is not limited to infrastructure projects but extends into the digital and cultural domains. Tencent’s role in enhancing China’s soft power through gaming parallels initiatives aimed at expanding China’s influence through digital technology exports, e-commerce, and the promotion of Chinese standards in digital governance. However, Tencent’s approach through gaming introduces an element of direct cultural engagement and exchange that is more subtle and pervasive than traditional soft power initiatives. This engagement leverages the universal appeal of digital entertainment to introduce Chinese culture to global audiences in an interactive and engaging manner.