Name: China’s E-Commerce Giant Alibaba to Be Broken Up as Founder Billionaire Jack Ma Returns to China
Uploaded: 2023-03-30T08:06:00.000Z
Description: Chinese e-commerce giant Alibaba announced on March 28 that it will split into six units, as news emerged that its co-founder Chinese billionaire Jack Ma has returned to China per the communist party's request, after spending more than a year overseas.

Vivian Li is a producer and reporter based at NTD’s global headquarters in New York City. With more than a decade of experience as a reporter and anchor for NTD’s Chinese-language division, she now primarily contributes to NTD’s English-language program China in Focus.

Vivian Li

NTD Plus

Shows

Fast, compelling, first-hand news from China. China in Focus airs Monday–Friday at 9:30 p.m. ET.

China in Focus

Chinese EV Maker Demands $23.7 Million From Small Michigan Town

Juliet Song is an international correspondent exclusively covering China news for NTD. She primarily contributes to NTD's "China in Focus," covering U.S.-China relations, the Chinese regime's human rights abuses, and domestic unrest inside China.

Juliet Song

Alibaba Sues Pentagon for Chinese Military Designation

NTD Newsroom comprises teams of reporters, editors, and producers assigned to cover breaking news and other stories.


NTD Newsroom

South Korean Chip Workers in High Demand at Work and Marriage

Mary Man is a writer for NTD. She has traveled around the world covering China, international news, and arts and culture.

Mary Man

News

China News

Report: Missouri State University’s Decades-Long MBA Program for Communist Elites

China Builds US Destroyer Replica at Missile Test Site

China's Aircraft Carrier Sails Through Taiwan Strait

China's Supercomputer Takes Top Spot, Raising Stakes in US-China Tech Race

1 in 10 Chinese Adults Face Debt Problems in China

Dutch to Enter US-led AI Alliance Despite Tension Over Export Rules

US, China Courts Brazil Over Rare Earths

Tiffany Meier is an anchor, China news investigative reporter, and producer for NTD News based at the network's global headquarters in New York City. Tiffany anchors NTD's flagship shows "NTD Evening News" and "China in Focus" and co-moderates NTD's special election coverage "The Nation Decides." She produced the award-winning NTD Original documentary "Hollywood Takeover: China's Control in the Film Industry."


Tiffany Meier

Alibaba Sues Pentagon; Beijing Weaponizes US Courts to Silence Critics

China Builds US Destroyer Replica at Missile Test Site; US Breaks China Mineral Monopolies

US, China Court Brazil Over Rare Earths; One in Ten Chinese Adults Face Debt Problems

Taiwan Begins Drill Simulating War; China Sanctions US Rare Earth, Defense Firms

Ukrainian Drone Makers Target Asian Markets; Taiwan Approves $6.7 Billion Drone Defense Plan

Trump Thanks Xi, Putin for Their 'Neutrality'; US Embassy Warns Travelers of China Exit Bans

US, Japan Reaffirm Indo-Pacific Partnership; US Senate Condemns Xi Jinping

US Issues 3 Warnings in 2 Days on China; Beijing Detains 2 Christian Leaders

G7 Summit Eyes Supply Chain Resilience; US Agencies Ban Chinese-Origin Goods

China Arrests US Citizen; SpaceX’s Ambition May Depend on China

The Associated Press is an American not-for-profit news agency headquartered in New York City. 

The Associated Press

World News

Americas

Helicopter With Singer Oliver Tree on Passenger List Collides With Another in Brazil, Killing 6

News you can trust from the U.S. and around the world. Critical information and insight. We cover the stories that others don’t. NTD News Today airs Monday–Friday at 11 a.m. ET.

NTD News Today

Iran's Football Team Leaves Note of Friendship

Melanie is a reporter and editor covering world news. She has a background in environmental research.

Melanie Sun

US News

State News

California

California Governor, LA Mayor Declare Emergency Over Warehouse Fire

News with integrity, from the United States and around the world. Focused reports and analyses that shed light on major issues the world deserves to know. NTD Evening News airs daily at 6 p.m. ET.

NTD Evening News

Up to 900 Planes Grounded Worldwide Amid Engine Shortage, United CEO Says

Reuters is a news agency owned by Thomson Reuters. It employs around 2,500 journalists and 600 photojournalists in about 200 locations worldwide writing in 16 languages.

Reuters

Andrew Thomas is a reporter for NTD News primarily covering business, the economy, and technology. 

Andrew Thomas

Science &amp; Tech

NASA Reverses Evacuation Alert Order for Astronauts Aboard Space Station

Rudy Blalock is a Southern California-based daily news reporter for NTD. Originally from Michigan, he moved to California in 2017 and the sunshine and ocean have kept him here since. In his free time, he may be found underwater scuba diving, on top of a mountain hiking or snowboarding, or at home meditating—which helps fuel his active lifestyle.

Rudy Blalock

8 Dead After B-52 Bomber Crashes at Edwards Air Force Base in California

Ohio

At Least 12 People Shot at Ohio Festival, Search for Suspects Ongoing: Police

Daniel Monaghan is a reporter for NTD News covering culture, social issues, and education. He holds a BA in Political Science and Government.

Daniel Monaghan

Epoch Times Obtains Over 2,000 Unseen Tiananmen Square Photos on 37th Anniversary of the June 4th Massacre

US Embassy in Israel Issues Travel Alert for Much of Middle East

Los Angeles Warehouse Fire Prompts Shelter-in-Place Orders

Label

Live

NTD+ Live

NYC Firm Hosts Book Party on Investing in Critical Minerals Beyond Beijing’s Reach

'Mineral War' Author on China's Rise, Global Response

China’s Long Arm on American Soil

Special Reports

Global Trade Under the Shadow of the 1989 Tiananmen Massacre

How Americans View China and Chinese ‘Elections’: Special Report

Countering Communism in US With Memorial for Its Victims

US Funding Chinese Communist Party Economic Growth: Experts

China's Artistic Censorship Aimed at Americans: Browde

Taiwan 2024 Special Election Coverage: China in Focus

Expert: Why Social Media Apps Are 'Legal Malware'

Chinese e-commerce giant Alibaba announced on March 28 that it will split into six units, as news emerged that its co-founder Chinese billionaire Jack Ma has returned to China per the communist party's request, after spending more than a year overseas.

China observers believe this shows that Beijing's policy toward privately-owned large Chinese tech companies has not fundamentally changed.

On March 27, the South China Morning Post, a newspaper owned by Alibaba, confirmed Jack Ma's return to China. It <a href="https://www.scmp.com/tech/big-tech/article/3214955/alibaba-founder-jack-ma-returns-mainland-china-visit-school-hangzhou">reported</a> that Ma visited Yungu School in Hangzhou City of Zhejiang Province on that day. The school was set up in 2017 by Ma and other founders of Alibaba.

On March 28, Zhang Yong, chairman and CEO of Alibaba, announced the "1+6+N" organizational restructuring plan of the company—the biggest revamp in 24 years, which breaks up Ma’s empire into six business groups and numerous companies.

Each unit will have its own board of directors and CEO; and the Alibaba Group will fully implement holding company management.
<h2>Clamp Down on Tech Industry, Private Sectors</h2>
The Chinese communist regime began clamping down on the tech industry in late 2020.

A speech by Jack Ma in early 2020 critical of the Chinese regime’s regulatory system has been widely seen as what triggered Beijing’s increased scrutiny of Alibaba, which led to Ma’s eventual withdrawal from public events. At the end of 2021, Ma left mainland China and made appearances in Japan, Spain, Australia, and Thailand.

In the past few years, due to central government suppression of China's private sector across many industries under the policy of “the state enterprises advancing, the private sectors retreating,” it has become increasingly difficult for private enterprises to survive.

While Ma was away, he was stripped of control of many of his companies, and lost influence and wealth. In early January, Ma successively gave up control of Ant Group, Hang Seng Electronics, and others companies. Ma’s staying abroad is also seen as a protest against the treatment of Chinese entrepreneurs by the ruling Chinese Communist Party (CCP).
<h2>Attempts to Boost Confidence in Chinese Economy</h2>
China’s economy has declined sharply in the past three years under the regime’s draconian “zero-COVID” policy and control measures.

Recently, CCP head Xi Jinping changed tone and repeatedly emphasized his support for private enterprise, saying that he "always treats private enterprises as his own people." The regime’s new Premier Li Qiang also claimed that the CCP will treat all enterprises equally.

A number of international media outlets reported that the CCP authorities have pressured Ma to return to China, hoping to reverse the outside world's perception of the deterioration of China's business environment. Ma was reportedly reluctant to go back to China initially.

After Ma’s return was confirmed, Alibaba's shares surged 12 percent on the Hong Kong stock exchange on Wednesday, leading technology stocks in the Asia-Pacific region. Its American depositary receipts rose more than 14 percent on Tuesday.

Brock Silvers, chief investment officer for Kaiyuan Capital, told CNN on March 29, “It appears that Alibaba’s break-up has been orchestrated by Beijing.”

“This idea is reinforced by Jack Ma’s sudden reappearance, which now seems like a planned media event, intended to boost market sentiment at a critical moment,” he said.

The latest move shows that Chinese regulators still intend to reduce the privately owned tech giants’ influence and limit their power, even as Beijing, on the other hand, is urging private companies to do their part to create jobs and boost China’s economy.

Qiu Wanjun, a professor of finance at Northeastern University in Boston, told The Epoch Times on March 29 that Ma’s return to China is likely because he has reached some tacit understanding with the CCP top circle or he has received some promises from them.

“The CCP may find that China's economic future would be even worse without Alibaba's push. In the past few years, the CCP has promoted the advancement of the state and the retreat of the private sector, but the contribution of state-owned enterprises to economic development is far less than that of private enterprises. So now, the regime turns to private enterprises for help.”

Hua Chia-Cheng, director of Research Division II of the Taiwan Economic Research Institute, also agreed that Ma has likely negotiated certain terms with the CCP authorities for his return to China.

But Hua is not optimistic for China's economy. He told The Epoch Times on March 29 that the authorities may want to use Ma as a model for private enterprise owners to support China’s economic development, but private enterprise owners may not agree with and follow them in their hearts.

Northeastern University's Qiu said that the CCP’s current high-profile promotion of its support to private enterprises may temporarily relieve some pressure for private entrepreneurs. But in the long run, it is not a real solution to the problems facing the Chinese economy.

"For business operators, they actually care about whether the business environment is stable and can protect their property rights, and whether the market is stable.”

"A long-term solution to the problem lies in establishing a reasonable and legal system, and implementing it in accordance with the law and procedural justice; it is not an artificially created campaign to temporarily boost the confidence of entrepreneurs,” he said.

<em>Ning Haizhong, Luo Ya, and Reuters contributed to this report.</em>

<em>From <a href="https://www.theepochtimes.com/chinas-e-commerce-giant-alibaba-to-be-broken-up-as-founder-billionaire-jack-ma-returns-to-china_5159650.html">The Epoch Times</a></em>

Programs

china

jack ma

Videos

Business News

04_Top Stories

Latest Clips

Latest and breaking news, documentaries, movies, and lifestyle content on NTD+.
 
Empower your knowledge and elevate your spirit with NTD+, your go-to destination for truthful news, insightful documentaries, and captivating lifestyle content that enriches your life.