Ecommerce corporations Alibaba, JD.com, and Pinduoduo are prominent Chinese internet companies initiating multibillion-dollar projects to assist traditional exporters in transitioning to domestic sales. This effort is part of a national strategy aimed at mitigating the impact of the increasing trade tensions with the United States.
Alibaba has organized a task force to procure goods from exporters across more than ten provinces in China. Its ecommerce platforms, Taobao and Tmall, have pledged higher commissions and increased visibility to at least 10,000 exporters who are encouraged to sell 100,000 items. Additionally, Alibaba’s supermarket chain, Freshippo, has established special “green channels” for export suppliers to market their products in its stores.
In response to recent changes affecting sellers on its international platform Temu, Pinduoduo has committed to investing RMB 100 billion ($13.7 billion) to aid its merchants in adapting and improving their operations. Zhao Jiazhen, Pinduoduo’s co-chief executive, emphasized their dedication to absorbing costs and risks while ensuring the stable growth and profitability of small to medium-sized manufacturers.
The cessation of “de minimis” duty exemptions on US-bound packages under $800 and the imposition of tariffs of up to 125% on numerous Chinese goods have rendered such exports less viable.
JD.com has announced a RMB 200 billion fund aimed at sourcing products from local exporters in the coming year. Meanwhile, other major companies like WeChat owner Tencent, delivery service Meituan, and ByteDance, known for TikTok and Douyin, have also launched similar initiatives.
Baidu will allow one million companies to use its livestream advertising services with AI-generated “virtual humans” at no cost. The ride-hailing company DiDi plans to invest RMB 2 billion to support domestic employment and consumption and to aid domestic manufacturers in global expansion efforts.
Li Chengdong, the founder of the Beijing-based ecommerce consultancy Haitun, suggested that political factors have encouraged Chinese tech firms to embrace social responsibilities voluntarily. Li noted the influence of anti-US sentiment among Chinese companies, which is prompt action at a critical time serving both social and reputational purposes.
Li argued that these actions do not require official intervention, as the companies themselves are acutely aware of the political landscape influencing their decisions. He also highlighted that these tech giants must carefully navigate public opinion while making strategic commercial decisions.
Since the government crackdown in 2020, Chinese tech companies have faced increased pressure from Beijing to fulfill their social responsibilities. President Xi Jinping’s meeting with leading entrepreneurs, including Alibaba’s Jack Ma and Tencent’s Pony Ma, signaled a possible rapprochement with the sector.
Confronting a sluggish economy and the repercussions of tariffs imposed by Donald Trump’s administration, the Chinese government has increased its efforts to minimize potential disruptions. The commerce ministry has recently engaged with trade associations, retailers, and distributors to explore domestic sales avenues for exporters. During a recent meeting attended by vice minister Sheng Qiuping, the ministry committed to supporting domestic businesses in managing external challenges.
Additionally, there has been a trend of patriotic purchasing among Chinese consumers, coupled with organized support for the country’s stock markets by a “national team” of state-owned funds actively investing and executing share buybacks.
