Alibaba will invest 100 billion yuan ($ 15.5 billion) in the program over the next years “Common prosperity”by joining other tech giants that are also involved in initiatives launched by Chinese President Xi Jinping.
The funds of the Chinese e-commerce sector leader will be spent in 10 areas, including technological innovation, economic development, creation of high-quality jobs, as well as supporting vulnerable social groups. Last month, the head of state called for “Reasonable adjustment of excess income”as well as ensuring that high-income businesses “Returned to society more”…
“Alibaba has been the beneficiary of strong social and economic progress in China over the past 22 years. We firmly believe that if society is doing well and the economy is doing well, then Alibaba will be doing well. We strive to contribute to the achievement of shared prosperity through quality development “– said the CEO of the company Daniel Zhang (Daniel Zhang).
The call for shared prosperity – the government’s quest for well-being for all citizens – has been answered by tech giants now under scrutiny from Beijing’s regulators. Recently, China has enacted numerous regulations regarding antitrust and data security and protection. In this regard, Alibaba was fined $ 2.8 billion in an antitrust case, Didi was investigated in the field of cybersecurity a few days after the IPO in the United States, and children under 18 were significantly reduced the allowed time for online games. Many other measures of state influence were taken.
Alibaba is not alone in supporting the Shared Prosperity Program. In August, another tech giant, Tencent, said it would double the flow of funds for social initiatives to the same 100 billion yuan. The money will be used to rebuild rural areas and raise income levels for needy social groups. Tencent said its actions were in response to a “national strategy.” A company with interests in social media and the gaming industry has called for the incremental development of shared prosperity – letting some people get rich first, then making others rich later.
Lei Jun, head of electronics manufacturer Xiaomi, Lei Jun, head of the largest agricultural trading platform Pinduoduo, Colin Huang, and head of the largest grocery delivery service Meituan Wang Xing donated billions of dollars to social needs.