The Chinese government gave its major e-commerce players the green light they needed to help grow their international e-commerce reach as Li Keqiang, the Premier of China’s State Council, provided support toward Internet companies like Alibaba and JD.com, Reuters reported.
No only did he back the concept financially, but he provided a glimpse into China’s “Internet Plus,” plan that involves “promoting cloud computing, online banking, mobile Internet, along with logistics to help e-commerce expansion,” according to Reuters’ report. This stamp of approval for the e-commerce expansion came with a chunk of government funding. He did so while addressing China’s annual parliamentary meeting yesterday (March 5).
“In addition to the 40 billion yuan ($6.38 billion) government fund already in place for investment in China’s emerging industries, more funds need to be raised for promoting business development and innovation,” Li said, according to Reuters. That $6.38 billion could be just what e-commerce giants need to help grow its cloud computing business. Alibaba, for example, just this week announced it was opening a cloud computing data center in Silicon Valley through its cloud computing business, Aliyun.
The Silicon Valley data center initially will provide a variety of cloud computing services that are expected to attract overseas Chinese businesses as they develop various kinds of applications. U.S. businesses will also be sought as Aliyun learns more about the needs of overseas companies.
“Aliyun offers users top-notch cloud computing products and services at competitive prices. Now Aliyun hopes to meet the needs of Chinese enterprises in the United States, and the ultimate objective of Aliyun is to bring cost-efficient and cutting-edge cloud computing services to benefit more clients outside China to boost their business development,” Ethan Sicheng Yu, Vice President of Aliyun, said in a company release.
Outside of Alibaba, Internet companies like Tencent and Baidu, an online search firm, are also likely to benefit from China’s investment in its global e-commerce growth opportunities. What China has done in recognizing the need to invest in its technology sectors, has essentially given support to help China continue to grow as a dominating e-commerce force — but now potentially on a more global scale.