Chinese Alibaba to invest $ 15.5 billion for “common prosperity”

SHANGHAI, Sept. 2 (Reuters) – Chinese group Alibaba (9988.HK) will invest 100 billion yuan ($ 15.5 billion) by 2025 to support “common prosperity,” he said, becoming thus the latest corporate giant to pledge to support the initiative led by President Xi Jinping.

Beijing has encouraged businesses to share wealth as part of efforts to reduce inequalities in the world’s second-largest economy. Other companies made similar announcements, including 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 funds would go to areas such as subsidizing small and medium-sized businesses and improving insurance protection for workers in the economy. odd jobs such as couriers and taxi drivers.

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

The e-commerce giant and its tech rivals have been the target of a broad regulatory crackdown on issues ranging from monopoly behavior to consumer rights. Alibaba was fined a record $ 2.75 billion in April for monopoly violations. Read more

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

Food delivery platform Ele.me and supermarket operator Freshippo, both owned by Alibaba, were among the operators called to a meeting last month with government regulators on improving safety and labor rights of delivery people. Read more

($ 1 = 6.4613 Chinese renminbi yuan)

Reporting by Brenda Goh Editing by Edmund Blair and David Goodman

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