Alibaba Group announced Friday, its intention to invest 100 billion yuan ($15.5 billion) to “promote common prosperity” in China.
The newly-established Alibaba Group Common Prosperity Advancement Working Committee, led by Alibaba Group chairman and chief executive, Daniel Zhang, will be tasked with delivering initiatives focused on technological innovation, economic development, high-quality employment creation, care for vulnerable groups and the establishment of a 20 billion yuan ($3.1 billion) common prosperity development fund, by 2025.
Alibaba’s commitment is the latest of a spate of high-profile contributions announced by tech companies in the wake of President Xi Jinping’s call last month to rein in China’s widening wealth and income equality gaps.
Tencent said it would spend the equivalent of $7.7 billion promoting common prosperity this year, by investing in medical care, education and revitalising rural areas, meanwhile group-buying e-commerce platform, Pinduoduo, also pledged to help farmers and rural areas with a contribution of $1.55 billion.
Food-delivery giant Meituan, whose chairman, Wang Xing, has personally donated billions of dollars worth of shares to a charitable foundation, said in its financial report released on August 30: “We will never stop creating greater value for all the participants in our ecosystem and promoting ‘common prosperity’ for the larger society.”
Billions of dollars were wiped from the stock market valuations of luxury’s largest companies last week, but investor fear over President Xi Jinping’s calls for wealth redistribution may be overblown.