China’s Alibaba to invest $ 15.5 million for “common prosperity”

SHANGHAI, Sept. 2 (Reuters) – Chinese group Alibaba (9988.HK) will invest 100 billion yuan ($ 15.5 billion) in 2025 in support of “common prosperity,” it said, becoming the latest corporate giant that promises support for the initiative driven by President Xi Jinping.

Beijing has encouraged companies to share wealth as part of the effort to alleviate inequality in the world’s second largest economy. Other companies that have made similar announcements are Tencent Holdings (0700.HK), which also pledged 100 billion yuan, and Geely Automobile (0175.HK). Read more

The government-backed Zhejiang News website said Alibaba’s funds will go to areas such as grants for small and medium-sized enterprises and improve insurance protection for workers in the economy such as couriers and drivers.

It will also set up a “common prosperity development fund” of 20 billion yuan, the newspaper said, with Alibaba confirming the report.

The e-commerce giant and its technological rivals have been the target of widespread regulatory repression on issues ranging from monopolistic behavior to consumer rights. Alibaba received a record fine of $ 2.75 million in April for monopoly violations. Read more

The sector has also drawn criticism for the treatment of delivery workers and drivers transporting vehicles, most of whom are not covered by basic medical and social insurance.

Food delivery platform Ele.me and Alibaba-owned supermarket operator Freshippo were among the operators convened last month for a meeting with government regulators to improve the safety and labor rights of Alibaba workers. cast. Read more

(1 $ = 6,413 Chinese yuan to renminbi)

Report by Brenda Goh Edited by Edmund Blair and David Goodman

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