Chinese language tech firm pledges to reinvest in society

That is the dedication of many market leaders made lately, displaying a exceptional turnaround after the Chinese language Authorities introduced a brand new growth path.

Final week, Chinese language tech big Tencent introduced a $15.four billion funding in primary science analysis, clear power, and training tasks. Half of this funding bundle will go to a “commonwealth” fund aimed toward bettering the lives of low-income individuals.

Together with Tencent, the fast-growing e-commerce platform – Pinduoduo – can even make investments $1.5 billion within the agriculture and rural financial system, whereas Alibaba is dedicated to increasing its philanthropic packages.

Worldwide buyers worry that these out-of-industry investments will devalue the market and deprive Chinese language expertise firms of cash that can be utilized for reinvestment.

Chinese technology company commits to reinvest in society - Photo 1.

Individuals stroll previous Tencent’s headquarters in Shenzhen, Guangdong province, China. (Photograph: Reuters)

“Each investor is determining if this can be a one-time funding, or will it occur repeatedly within the coming years,” mentioned Jeffrey Towson, China digital financial system professional.

The brand new transfer by Chinese language expertise firms comes shortly after the Chinese language authorities introduced the event path of “harmonious society” and “widespread prosperity”, emphasizing the necessity to slim the hole between the 2 nations. revenue in addition to selling justice in society.

Many analysts predict that the Chinese language authorities will step up measures to regulate market leaders to keep away from monopolies or focus of wealth.

Beforehand, in August 2021, the Chinese language Authorities launched a five-year plan to extend competitiveness and make the home market wholesome.

“A brand new regulatory surroundings has been constructed. Measures underneath examine will impose extra limits on earnings, progress of expertise firms and elevated governance,” mentioned Ms. Ervan Cui. , market analyst, firm Gavekal Dragonomics, mentioned.

The Chinese language authorities has began steps to manage expertise firms because the finish of 2020. Over the previous yr, many new management measures have been applied with the purpose of bringing about sustainable progress and social stability. associations as a substitute of serving solely a handful of huge firms.

Duc Cuong