China's tech giants face difficult transition

Subject

The future of Chinese internet conglomerate Alibaba after the forthcoming retirement of its founder.

Significance

Jack Ma, founder and chairman of China’s internet giant Alibaba Group, has announced that he will resign from his position on September 10, 2019, the company’s 20th anniversary. This will be the first time any major Chinese tech tycoon has handed over the reins. It will be an important test case for both business and political reasons.

Impacts

• The main challenge now will be managing the complex structure into which Alibaba has evolved.
• A more collective management could make Alibaba less vulnerable should any individual top manager fall foul of the authorities.
• Ma’s departure will likely create a template for other Chinese tech businesses to plan and manage inevitable leadership transitions.