Google and Tencent announce tie-up to cross-license patents

Google has signed a tie-up with Tencent in a bid to enhance its presence in China.

The patent cross-licensing agreement will be “long-term” and covers a range of technologies, according to Google. Further terms of the deal were not disclosed but the company said it could open the door to closer collaboration in the future.

It marks a significant leap for Google into China, where most of its services are blocked by authorities.

Tencent has been on a streak of partnerships and acquisitions outside of China lately. In December, it agreed to swap a 10 per cent stake in its music business for an equivalent share in Spotify.

Earlier this month it was announced that it would be working with Lego to develop children’s online games. It also bought a stake in Snapchat back in November, with the aim of helping to enhance the app’s gaming abilities.

Google has also ramped up its activities in China, with an AI lab planned for Beijing and an investment in streaming service Chushou.

US tech companies are increasingly looking to Chinese counterparts for growth opportunities, but regulators have been known to block deals which would see Chinese companies take over US ones due to security fears. Authorities blocked the $1.2bn sale of MoneyGram to Alibaba’s payments arm last month, while Canyon Bridge was prevented from completing its purchase of Apple chip supplier Lattice Semiconductor Group.