Alibaba Group Holding Limited (NYSE:BABA) Chair and CEO Daniel Zhang Yong penned an article in China cyberspace administration's official magazine, SCMP reports.
Zhang promoted the positive role of Alibaba technology in Chinese society via the article. A note on Zhang's article detailed Alibaba's growth as proof of President Xi Jinping's strategy to develop a robust digital economy.
Firstly, Alibaba's technology could create commercial value by building the infrastructure for e-commerce transactions. Secondly, Alibaba Cloud could help promote cloud innovation and digitalization of the industry. Thirdly, Alibaba technology could contribute to better serving society.
He expressed Alibaba's twin objectives of focus on the essence and cutting-edge technology and commitment to creating open and shared technology that benefits everyone.
China saw an intense regulatory crackdown on the domestic internet sector that began with the scrapping of Alibaba's fintech arm's IPO. The country had also undergone strict Covid lockdown following the pandemic resurgence that included critical cities like Shanghai, which were instrumental to its tech development.
However, China expressed its support towards the domestic tech companies to uphold the economy during the April Politburo meeting and the May meeting between Chinese bureaucrats and Big Tech leaders.
Recently, JD.com, Inc (NASDAQ:JD) Retail CEO Xin Lijun acknowledged that regulation is not necessarily easing but is becoming more stable.
Zhang highlighted how Alibaba had helped sell agricultural produce worth over 1 trillion yuan in the past eight years. He shared how Alibaba looks to invest 100 billion yuan from the second half of 2021 until 2025 to help tech innovation, economic development, and others.
Zhang emphasized how it utilized technology to resolve social issues citing China's health code as an example.
Price Action: BABA shares traded lower by 1.05% at $115.53 in the premarket on the last check Wednesday.
Photo by Rico Shen via Wikimedia
