Alibaba is investing $15.5 billion into China’s drive to achieve common prosperity, marking the latest big pledge from a Chinese company to support President Xi Jinping’s campaign. The company announced that it would spend a huge amount by 2025 with advances in technology, economic upgradation, employment opportunities, to elevate vulnerable communities, and setting up a special development fund.
China’s technology giant also revealed about 10 specific goals it plans to undertake, from increasing technological investment in the country’s less developed regions to improving the welfare of gig economy workers to working to speed up the growth of small businesses and agriculture. The company is also setting up what it’s calling the Prosperity Advancement Working Committee which will be helmed by Chairman and CEO Daniel Zhang.
The CEO said that Alibaba is a beneficiary of the 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 do well. They are eagerly lookingto support the realization of common prosperity through high-quality development.The company’s shares dropped in New York on Thursday, after the news was first reported by state-run newspaper Zhejiang Daily. The shares of the company
in Hong Kong slumped 3.5% on Friday. The company’s pledge came just a week after another major Chinese e-commerce firm, Pinduoduo, vowed to hand over its entire profit for the last quarter to rural development projects in the country. It said last Tuesday that it would donate $372 million to the development of China’s agricultural sector and rural areas, with plans to give away $1.5 billion toward similar causes overall.