Alibaba will invest 100 billion yuan ($15.5 billion) by 2025 in support of the country’s goal of common prosperity, becoming the latest corporate giant to pledge support for the initiative, Zhejiang News reported on Thursday.
Alibaba will set up a special permanent organization to carry out ten actions around the five major directions, namely, scientific and technological innovation, economic development, high-quality employment, caring for vulnerable groups and a common prosperity development fund.
The first action is to increase investment in science and technology to support digital construction in underdeveloped areas, such as setting up talent funds and reward plans. Daily operating costs of small and medium-sized enterprises should be reduced. The company plans to boost the agricultural industrialization process by building agricultural product collection centers and a number of regional brands in conjunction with local governments.
The plan of small and medium-sized enterprises to explore the overseas market while youth entrepreneurship will also be strongly supported. Alibaba’s funds will go towards improving insurance protection for gig economy worker, such as couriers and ride-hailing drivers. It hopes to reduce the inequality of urban and rural digital life and improve medical infrastructure in rural areas.
The company is also giving priority to narrowing the digital divide, such as optimizing the digital life experience of the elderly and establishing a relief fund for children with serious illnesses. It will also set up a 20 billion yuan common prosperity development fund for general use.
On August 17, the 10th meeting of the Central Committee of Finance and Economics put forward the idea of “promoting common prosperity while maintaining high-quality development”. Internet companies have paid attention to the statement.
Other companies joined the effort. August 18th saw Tencent announce that it would invest another 50 billion yuan in further supporting people’s livelihood. Meanwhile, Geely, a Chinese auto company, announced on Monday that it plans to reward its employees with more than 100 million shares in response to the plan of common prosperity. In addition, Wang Xing, founder of Meituan, said on Monday that the concept of common prosperity is “rooted in Meituan’s gene”.