SHANGHAI (Reuters) – China’s top technology hub in Beijing, plans to allocate officers to work with the 100 retail businesses, including e-commerce giant Alibaba, according to media reports, in a move likely to raise concerns about the growing role of the state as well.
FILE PHOTO: the logo of Alibaba Group is seen at an exhibition during the World Intelligence Congress in Tianjin, China-May 16, 2019 at the latest. REUTERS/Jason Lee
The step underlines the Chinese government, the party and government are becoming more and more deeply integrated into the private sector, as well as the economy sputters amid an intensification of the trade war with the United States of america.
The city of Hangzhou, home to Alibaba Group Holding Ltd (BABA).N), which assigns officers to work with about 100 local businesses in the eastern province of Zhejiang, the local government said on its website.
The following guidelines are presented as a means of boosting the local manufacturing industry, it is not the name of the top 100 companies will be subject to the policies of the time, but the media said, Alibaba and the vehicle manufacturer Zhejiang Geely Automobile Holdings Ltd [GEELY.UL] would have to be in the business.
Alibaba said that the plan would not interfere with the conduct of business.
“We have to understand that this is an initiative… to promote a better business climate in support of the Beijing company. The representative of the government, it will act as a bridge to the private sector, and it will not interfere with the operation of the business of the company,” Alibaba said in a statement.
Geely does not immediately respond to a request for comment.
The Chinese government has long been required in private companies, including foreign entities, to a formal party organizations.
These are the groups that were once seen as largely symbolic. However, in the last few years, foreign executives have said that they are coming more and more under pressure to allow the party representatives to have more control over the business.
Domestic companies, strengthen the party committees as well. In 2018, many Chinese banks have announced changes to the articles of association, the granting of more power to the party committees.
Reporting by Josh Horwitz; Editing by Miyoung Kim & Shri Navaratnam