Access to Twitter is banned for China’s 1.4 billion citizens, and yet the country is one of the platform’s biggest sources of revenue.
How to explain this? According to ReutersDespite the ban on political ads and state media on the social network, the governments of the different provinces of the state and the propaganda organs of the central power have been massively buying Twitter ads for several years to reach to a worldwide audience.
As a result, since 2014, Twitter has seen an 800-fold increase in ad revenue in its Chinese market, the fastest growing in the world.
Very active state media ads
Reuters had access to government tenders, budget documents, and tweets posted between 2020 and 2022. These documents confirm that local authorities and Communist Party propaganda offices flocked to Twitter to buy ads.
Specifically, the news agency found dozens of announcements from Chinese local governments, as well as from the state media themselves. Several active accounts, such as that of a state operation paid for by the Chongqing metropolis, as well as verified accounts run by the People’s Daily, the official organ of the Communist Party, continued to advertise on Twitter as late as last month.
A review of more than 300 accounts representing local governments revealed that, at the time of this story’s publication, fewer than a dozen were labeled by Twitter as state-affiliated media. Bidding documents show that the vast majority of these accounts are outsourced to state media.
Especially since China has taken advantage of its dominant position. As the business grew, Chinese local government accounts increased their demands on the business, requesting blue badge verifications.
Twitter breaks its own rules
In March this year, Twitter banned political and state media ads, including for state media accounts devoted exclusively to entertainment, sports, and travel content.
However, these ads, still present online, attract an international audience and showcase local attractions as well as cultural and economic achievements. They were authorized thanks to a Twitter exemption. Two people with knowledge of the matter said Twitter’s China business team has even actively engaged with local governments as part of its global strategy to compete with tech rivals like Google and Facebook.
Four sources said Reuters that operations in China have become a source of internal fighting, between those who want to maximize sales opportunities and others concerned about doing business with state-affiliated entities at a time of growing tension between Beijing and Washington.
mess with the Musk case
The revelation comes as the company is embroiled in a legal battle with Tesla Chief Executive Elon Musk, who is trying to back out of his $44 billion bid to buy Twitter.
Former Twitter security chief Peiter Zatko was heard by the US Senate Judiciary Committee on Tuesday. He said Twitter employees feared the Chinese government might siphon customer data from the social network. The whistleblower also noted that some Twitter officials wanted to expand the platform’s business in China with the goal of maximizing revenue from Chinese advertisers, while others were more reluctant to do so due in part to rising tensions between Beijing and Washington. . He also revealed that “the FBI had informed Twitter that a Chinese agent had infiltrated the company,” Senator Grassley said, without elaborating.
Before Elon Musk’s relationship with Twitter soured, the acquisition of Musk was seen as a useful advantage for China. And that outlet is called Tesla because the company generated $4.65 billion in China in the first quarter of 2022. China is now Tesla’s second largest market, accounting for 24.8% of the company’s revenue. Had Elon Musk taken over Twitter, China might have relied on its reliance on its market and imposed its own terms.
And researcher Antoine Bondaz to confirm: “The Chinese regime will love Musk’s takeover of Twitter… Now he has a real means of pressure on the social network.”
Twitter declined to comment on internal discussions and the results of its business in China. A spokesman said the company has never hidden the fact that it does business with Chinese business entities.
Source: BFM TV
