Alibaba Reaches Fresh Deal With China To Boost Hangzhou City's Digital Economy, Reflecting Improved Relations With Beijing

  • Alibaba Group Holding Limited BABA assumed a crucial role in Hangzhou city's plans to lure more internet firms amid the "high-quality and healthy development of platform economy" under a deal with the local market regulator.
  • The Hangzhou Market Regulation Bureau and Alibaba inked the deal on March 13, SCMP reports
  • Alibaba also forged a strategic cooperation agreement with the Hangzhou municipal authority in January.
  • Also Read: Alibaba Chip Unit And Ant Group's Payment Service Unite To Launch Chips For Payments
  • The new deal aims to implement decisions by "central, provincial, and municipal departments" to attract more platform enterprises to choose Hangzhou as their base. It also hopes that Alibaba will lead in developing the province's digital economy.
  • The move came two years after China penalized Alibaba a whopping $2.8 billion for monopolistic practices.
  • Alibaba's relationship with local governments improved after Beijing signaled a policy shift in 2022.
  • Alibaba's home province, Zhejiang's new communist party secretary Yi Lianhong visited the e-commerce giant's campus on December 18 as a mark of solidarity for the Chinese technology company.
  • Yi Lianhong urged Alibaba to focus on normative and innovative development. Yi also talked about regulated capital investment and expansion.
  • Price Action: BABA shares traded lower by 2.75% at $81.55 premarket on the last check Wednesday.
Market News and Data brought to you by Benzinga APIs
Posted In: GovernmentNewsRegulationsTechMediaBriefs
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!