This is by design; it ensures the salaried employee doesn't have to pay as much income tax.
Chinese Economics Thread
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pro market economist = ideological propaganda hack. the goal of economics should be optimizing operational efficiency. what does that have to do with ideology?
SCMP has a very neoliberal slant. No surprise that they push the word of neoliberal economists to their frontpages. Their ideal economic world is their home-city: HK. Small powerless sleeping inactive goverment while tycoons running amok with the comman man/women struggling to survive. Already forgotten how HK has been unstable the past decade in no small part due to HK economic structure. Their advice is the least what you need otherwise HK would have been something much more vital and dynamic instead of their current death spiral.
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Yeah, the ideology has everything to do with efficiency. The efficiency of making the pockets of the 1% bigger then they already are.
Alibaba will donate a third of its cash reserves to social initiatives. China is going hardcore socialism.
Spoken like a true communist.
Alibaba with its garbage R&D doesn't need so much cash reserves. Better to donate it for better purposes.
What were they going to do instead? Use it to squeeze small businesses even more? No thank you. Better for the money to go for "common prosperity"
Alibaba didn’t become globally competitive with garbage R&D. Good luck staying competitive when 30% of your cash is taken by the state. There goes your R&D budget.
Common Prosperity is euphemism for wealth redistribution. China went through all that before.
Let me explain to you what "common prosperity" means for business.
Any company who does garbage R&D (Alibaba, DiDi, Tencent et al) will all pay up through their noses to help the poor.
The rest of the REAL r&d, such Huawei, Xpeng, xiaomi, SMIC, SMEE etc wontpay anything because their business benefit China's technological independence.
If Alibaba et al, want to continue with their useless R&D, no problem, they will just keep paying for "common prosperity"