After the announcement of a 100 billion RMB charity plan, Alibaba is now adding another 50 billion RMB to pave the way for China to achieve “common prosperity”. This time, money will be spent on village revitalisation, shrinking the low-income group, education equality, and improving the health system.
Alibaba embarked on its charity cause ten years ago. Through years of effort, it has made inspiring achievements. According to the Internet Poverty Alleviation 2016, the e-commerce giant raised 228 million RMB ($35.41 million) through its charity campaign on Taobao. In the same year, it saw over 28 million active users from poverty-stricken counties, with an overall online transaction reaching 207.4 billion RMB ($32.21 billion). In 2017, Alibaba continued its journey by committing to a poverty relief fund of 10 billion RMB ($1.55 billion) and extended its effort to promoting women’s rights, environmental protection, and entrepreneurship.
However, Alibaba is not the only company fighting for “common prosperity”. Recently, Tencent pledged 5 billion RMB ($776 million) to charity causes and launched a 50 billion RMB ($7.76 billion ) common prosperity plan. Pinduoduo, a giant agriculture-focused tech giant, announced its Agritech Research Fund of 10 billion RMB ($1.55 billion). Those Internet giants are moving in the direction of “common prosperity” set by the Chinese government.
Internet giants are now moving in the direction of common prosperity set by the Chinese government. They strive to help combat poverty and narrow down the gap between the rich and the poor through charity work. At the same time, they aim to reduce the risk of being fined over anti-monopoly violations.