Alibaba to invest $15.48b by 2025 to support common prosperity goal
Published: Sep 02, 2021 08:48 PM
File photo shows the Alibaba employees entering the company in Hangzhou, Zhejiang Province.Photo:Xinhua

File photo shows the Alibaba employees entering the company in Hangzhou, Zhejiang Province.Photo:Xinhua

China's e-commerce giant Alibaba announced on Thursday that it will invest 100 billion yuan ($15.48 billion) in total before 2025 to support China's pursuit of common prosperity for all, joining a league of Chinese companies that are moving swiftly to contribute to the country's long-term development goal.

Alibaba has started a 10-action plan to support the pursuit of common prosperity for all, including establishing tech industry funds to help push the digital construction of less-developed areas across the country, the company said.

It will also support the growth of small and medium-sized enterprises, through efforts such as decreasing their daily operating costs and providing subsidies to them. Alibaba will support small enterprises to explore overseas markets, help young people to start ventures, and support the enhancement of basic-level medical abilities.

Alibaba also plans to establish a 20-billion-yuan common prosperity development fund to support China's construction of common prosperity pilot zones. The company will establish a standing institution to push these action plans. 

The news was first reported by Zhejiang news portal, and Alibaba confirmed the news to the Global Times on Thursday. 

Those efforts echo Alibaba's previous moves to fuel domestic micro companies. For example, it launched a project named Spring Thunder, by which the firm helped export-focused small companies to expand into new markets through Alibaba's cross-border trading platforms like AliExpress.

Alibaba's plan was launched at a time when a number of large Chinese companies have announced similar plans to support the country's pursuit of common prosperity. 

Tencent, for example, announced about two weeks ago plans to set up a 50-billion-yuan fund as a common prosperity special plan. The money will be used to help lift up low-income groups, contribute to rural economic development and support grass-roots education. 

The chairman of e-commerce giant Pinduoduo Chen Lei said recently that the company had launched a 10-billion-yuan initiative to help low-income rural residents.

China's internet companies have faced tightening management by the authorities. In April, regulators set out 16 rectification requirements for Alibaba, including telling it to enhance its internal management and establish an antimonopoly system.

Hu Qimu, chief research fellow at the Sinosteel Economic Research Institute, said that internet companies are among the first batch to get rich in China and it was time for them to "give back to society" to not just fulfill their social responsibilities but also foster greater market and development.