Alibaba forges new pact to deepen collaboration with northern China's Tianjin in AI, cloud computing and big data initiatives

Chinese e-commerce giant Alibaba Group Holding and the municipal government of Tianjin have pledged "deeper collaboration" in the development of hi-tech fields such as artificial intelligence (AI), cloud computing and big data in the northern coastal metropolis.

That pact was forged at the conclusion of a meeting last Friday between Alibaba chairman and chief executive Daniel Zhang Yong, Tianjin Communist Party Secretary Chen Miner and city mayor Zhang Gong, according to a report on Saturday by the Tianjin Daily, a newspaper run by the municipal government. Alibaba owns the South China Morning Post.

Zhang said Alibaba would provide computing resources with "higher efficiency and at lower cost" to support initiatives in AI, cloud computing, big data and other hi-tech areas in Tianjin, home to northern China's largest port and about 150 kilometres from Beijing.

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As part of their tighter collaboration, the Tianjin municipal government expects Alibaba to pursue more innovative projects and businesses there, including in smart city and industrial internet activities, according to local Party chief Chen.

A visitor plays Chinese chess with an artificial intelligence robot at an exhibition during the seventh World Intelligence Congress in Tianjin on May 18, 2023. Photo: Xinhua alt=A visitor plays Chinese chess with an artificial intelligence robot at an exhibition during the seventh World Intelligence Congress in Tianjin on May 18, 2023. Photo: Xinhua>

For its part, Tianjin has promised to "continuously optimise the [city's] ecology for innovation", while "creating a favourable environment for enterprise development", Chen said.

Hangzhou-based Alibaba was already working closely with Tianjin before their latest collaboration agreement. In 2015, the company became the municipal government's strategic partner to develop a digital platform for civil administration.

In 2019, digital payment services provider Alipay, operated by Alibaba's financial technology affiliate Ant Group, launched a mini program for Tianjin residents to handle online errands, such as social security, pension, marriage registration and utility payments.

Alibaba's new pact with Tianjin reflects the company's continued confidence in collaborating with various local governments, following Beijing's call for increased private sector participation to stabilise the national economy and job market.

Earlier this month, Alibaba and Baidu were among a number of major Chinese Big Tech firms enlisted by Beijing's municipal government to accelerate the development of artificial general intelligence activities in the nation's capital.

In March, Alibaba and authorities in the southwestern metropolis of Chongqing pledged tighter collaboration in various hi-tech areas such as connected cars and digital infrastructure.

These development initiatives with various local governments have come at a time when Alibaba is undertaking a sweeping restructuring plan, which will transform the US$257 billion tech empire into six independently run entities.

The company on Thursday vowed to hire 15,000 new employees this year, quashing speculation that it is planning mass lay-offs.

This article originally appeared in the South China Morning Post (SCMP), the most authoritative voice reporting on China and Asia for more than a century. For more SCMP stories, please explore the SCMP app or visit the SCMP's Facebook and Twitter pages. Copyright © 2023 South China Morning Post Publishers Ltd. All rights reserved.

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