Alibaba promises China 100 billion yuan

Asian online giant Alibaba is investing about 100 billion Chinese yuan to help China achieve common prosperity in the future. The investment is a reaction to the plan of Chinese President Xi Jinping, who wants to massively reduce income inequality in the country. By 2025, the Chinese technology company will invest billions of yuan in technology, economic development and the creation of new and high-quality jobs. It also wants to help set up a special development fund and also wants to support some communities that have not received enough income for a long time. The CNN portal informed about it. Alibaba has set itself ten specific goals that it wants to achieve in the future. He wants to focus on the less developed Chinese regions, in which he will invest more. He also wants to work for a better life for the company's employees or for support for Chinese agriculture. Alibaba is also setting up a special working committee to achieve common prosperity, chaired by Daniel Zhang, the company's CEO. "Alibaba is benefiting from the strong social and economic progress that China has made over the past 22 years. We firmly believe that if the whole society and the economy succeeds, it will also have a positive effect on Alibaba, "Zhang said in a statement on Friday. With its goals, Alibaba responds to the Chinese president's plan from mid-August this year, which wants to achieve common Chinese prosperity in the future. At a financial and economic meeting, he called on the wealthy Chinese people to contribute more to the running of Chinese society. According to Bloomberg, the Chinese communists want to maintain their position in the country despite this plan. China is plagued by significant economic inequalities between the various strata of society. About a fifth of the richest people have up to ten times more income than a fifth of the poorest. Xi Jinping wants to focus mainly on the middle class and the peasants. A similar move as Alibaba was announced a few days ago by other Chinese companies. Pinduoduo has promised to invest all of its profits in the last quarter in Chinese rural development. Tencent also plans to invest to achieve common prosperity. In August, it announced that it was investing about 50 billion Chinese yuan. Alibaba's sales have grown significantly in recent months. The coronavirus pandemic also helped, leaving people around the world spending more time at home and shopping online. Revenues for the entire last financial year increased by 41 percent compared to the previous period to 17.29 billion yuan. Alibaba CEO Daniel Zhang also recently pointed out that the company managed to reach a historic milestone last year, one billion active users worldwide. Of this, 891 million are owned by Alibaba in China.