Alibaba reportedly to cooperate with China Tower

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消息称阿里巴巴与中国铁塔有意开展战略合作 – Tencent Tech

What happened: China’s retail behemoth Alibaba is reported to be in talks with the country’s newly established communication and telecom infrastructure and service solution provider China Tower. According to source close to the matter, Alibaba plans to cooperate with China Tower in areas including cloud computation, smart data, and Internet of Things (IoT). The communication and telecom industry suspects that 5G is also a likely cooperation project. China Tower has scheduled to land in Hong Kong’s stock exchange on August 8. Alibaba is the firm’s cornerstone investor and has invested $100 million for 500 million shares.

Why it’s important: The cooperation signals Chinese tech giants’ strategy in core technology and fundamental infrastructure building and service. While behemoths like Alibaba are consolidating their territories in existing advantageous fields like retail, entering new sectors and setting up early leading position becomes another critical plan. The cooperation will provide Alibaba with significant strategic user cases. Meanwhile, it’s going to strengthen the investor and investee’s relationship and generate larger win-win benefits.