Alibaba Group, the e-commerce giant founded by Jack Ma, will invest $15.5 billion by 2025 to support the "shared prosperity" advocated by Chinese President Xi Jinping.
The Chinese government encourages companies to donate some of their money in an effort to narrow economic inequality in the country. Previously, internet giant Tencent and automotive company Geely Automobile have also done the same.
Then what will the money from Alibaba be for? According to state media Zhejiang News, the funds from Albaba will, for example, be used to subsidize small and medium-sized enterprises, and help cover insurance for workers such as online couriers and drivers.
Alibaba and several e-commerce players have recently been targeted by the Chinese government because they are considered too powerful in all aspects of people's lives. In April, Alibaba was fined $2.75 billion for alleged monopolistic practices.
The e-commerce sector such as Alibaba has also been heavily criticized in China for ignoring online delivery people. Most of these workers do not have basic insurance coverage.
Xi Jinping stressed that China needs to achieve mutual prosperity by closing the prosperity gap that could threaten the economy and the legitimacy of the Chinese Communist Party.
The idea of co-prosperity is not new, but it has become a concern lately because the Xi Jinping government seems to really want to do it. The technology companies and their wealthy frontmen as well as celebrities who live luxurious lifestyles are targeted.
Beijing encourages high-income companies and individuals to contribute more to society through donations and charities. Even though China's economy is booming, there are still many people, especially in rural areas, whose incomes are relatively low. Alibaba is also now contributing to overcome this problem.
