Alibaba’s co-founder and executive chairman, Jack Ma, said he planned to step down from the Chinese e-commerce giant on Monday to pursue philanthropy in education, a changing of the guard for the USD 420 billion internet company.
A former English teacher, Ma started Alibaba in 1999 and built it into one of the world’s most consequential e-commerce and digital payments companies, transforming how Chinese people shop and pay for things. That fueled his net worth to more than USD 40 billion, making him China’s richest man. He is revered by many Chinese, some of whom have put his portrait in their homes to worship in the same way that they worship the God of Wealth.
Ma is retiring as China’s business environment has soured, with Beijing and state-owned enterprises increasingly playing more interventionist roles with companies. Under President Xi Jinping, China’s internet industry has grown and become more important, prompting the government to tighten its leash. The Chinese economy is also facing slowing growth and increasing debt, and the country is embroiled in an escalating trade war with the United States.
‘”He is a symbol of the health of China’s private sector and how high they can fly whether he likes it or not,” Duncan Clark, author of the book “Alibaba: The House Jack Ma Built,” said of Ma. “His retirement will be interpreted as frustration or concern whether he likes it or not.”
In an interview, Ma said his retirement is not the end of an era but “the beginning of an era.” He said he would be spending more of his time and fortune focused on education. “I love education,” he said.
Ma will remain on Alibaba’s board of directors and continue to mentor the company’s management.
The retirement makes Ma one of the first founders among a generation of prominent Chinese internet entrepreneurs to step down from their companies. Firms including Alibaba, Tencent, Baidu and JD.com have flourished in recent years, growing to nearly rival American internet behemoths like Amazon and Google in their size, scope and ambition. For Chinese tycoons to step aside in their 50s is rare; they usually remain at the top of their organizations for many years.
For Alibaba, Ma’s retirement completes a transition of power to other executives. He stepped down as Alibaba’s chief executive in 2013; the company’s current chief executive is Daniel Zhang, who is a candidate to succeed Ma. Yet he had remained active as the face of the e-commerce firm, as well as an architect of its long-term strategy. He owns a 6.4 percent stake of Alibaba, according to securities filings, but has considerably more sway over the company thanks to its complicated legal structure.
Ma, a natural salesman and charismatic leader, co-founded Alibaba with 17 others — some of them his students — out of his apartment in Hangzhou in eastern Zhejiang province in 1999. – NY Times