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Business trends

How billionaires and Beijing shaped the Tencent-Tesla tie-up

Capital controls are affecting the global ambitions of China's biggest businesses

| China
China's Tencent Holdings is investing $1.7 billion in California-based electric car maker Tesla.

It's not often we get to say a government policy is the victim of its own success. But the contrasting fortunes of two recent cross-border deals -- Dalian Wanda's failed $1 billion bid for Dick Clark Productions and Tencent Holdings' $1.7 billion investment in Tesla -- are evidence that this is the fate of China's Going Global strategy. It is also the reason Beijing is shifting from its previously laid-back approach to the greater discipline of Going Global 2.20.

Going Global -- also known as the Go Out policy -- is the reason we see Chinese multinationals such as Tencent, owner of China's most popular social network, WeChat, and property-based conglomerate Dalian Wanda operating in global markets in the first place.

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