The Chinese efforts of common prosperity
On August 17, President Xi Jinping stressed efforts to promote common prosperity in the pursuit of high-quality development and coordinate work on forestalling major financial risks. In order to promote common prosperity, Chinese big techs join a chorus of the Rich First Supporting Those Being Rich Later.
In this September, Alibaba announced the establishment of a unit and the investment of $15.5 billion in response to the 'common prosperity' initiative. Previously, Tencent had invested a total of 100 billion yuan to launch the "Sustainable Social Value Innovation" strategy. Companies such as Meituan, ByteDance, and Kuaishou have also jumped on the bandwagon to show their stance on the issue. But what specific measures will they take to facilitate the achievement of common prosperity?
Alibaba: “Ten Actions to Facilitate Common Prosperity”
On September 2, Alibaba Group announced the official launch of its “Ten Actions to Facilitate Common Prosperity”, in which the company announce an investment that totals 100 billion yuan ($15.49 billion) before 2025 in causes that would contribute to the “common prosperity”.
In order to promote the implementation of the actions, Alibaba will also set up a team with Zhang Yong, CEO of Alibaba Group, as the team leader.
He will lead the team to carry out Alibaba’s ten actions, focusing on scientific and technological innovation, economic development, high-quality employment, caring for marginalized groups and launching fund for Common Prosperity.
Pingduoduo: “10 billion Agricultural Research Project”
On August 24, Pinduoduo released its Q2 financial report of this year, with revenue of 23 billion yuan (the same below), a year-on-year increase of 89%; operating profit of 2 billion yuan and net profit of 2.4 billion yuan.
Chen Lei, chairman and CEO of Pinduoduo, announced at the performance meeting on the 24th that the “10 Billion Agricultural Research Project” will be launched, and all proceeds in the second quarter as well as the company’s subsequent profits will be invested in the project first until the total amount reaches 10 billion.
Chen Lei said that the “Ten Billion Agricultural Research Project” aims to address the needs of advancement in agricultural science and technology，especially in rural areas. Although the plan will affect the short-term profit of shareholders, Chen hopes the project paves way for a more sustainable long-term development in the future, and the board of directors has approved it.
Kuaishou: “Happy Village Strategy”
As the world’s leading content community and social platform, Kuaishou’s users are mainly young people from villages and rural areas in China.
Since 2018, Kuaishou has implemented the “Happy Village Strategy”, which targets systematical poverty alleviation and rural revitalization, and launched the “Happy Village Leaders Program”, the first Internet corporate social responsibility project focusing on rural entrepreneurs in China.
Tencent: 99 Giving day
On August 18, Tencent announced an additional investment of 50 billion yuan to launch the “Special Project for Common Wealth” to provide continuous assistance in rural revitalization, income growth for low-income groups, improvement of the primary medical system, and balanced development of education.
As early as April, Tencent has also invested 50 billion to launch “Sustainable Social Value Innovation” to help fields such as basic science, education innovation, carbon neutrality, FEW (food, energy and water), senior care technology, and public welfare digitalization.
Besides pouring money for society goods, Tencent also launched the "99 Giving Day" annual charity campaign. Founded in 2015, Tencent's 99 Giving Day is now the most popular and renowned public charity campaigns in mainland China, bringing together enterprises, charities and donors to address a diverse range of challenges that affect the local and global community.
This year, more than 68.7 million users donated 3.569 billion yuan during the 99 giving Day, plus 600 million yuan match donation from Tencent Charity Foundation, raising a total of 4.169 billion yuan, a new high compared to last year's 2.72 billion yuan.
With the promotion of common prosperity becoming an important long-term policy in China, the new phase also demands much involvement of the tech industry. How to improve the collective well-being of society is becoming a new subject to tackle for Chinese big techs.