China to send state officials to 100 private firms including Alibaba

By Josh Horwitz

SHANGHAI, Sept 23 (Reuters) - China's top technology hubHangzhou plans to assign government officials to work with 100private companies including e-commerce giant Alibaba, accordingto state media reports, in a move likely to raise concerns overthe growing role of the state.

The step underscores how Chinese government and partyauthorities are growing more deeply integrated into the privatesector, as its economy sputters amid an intensifying trade warwith the United States.

The city of Hangzhou, home to Alibaba Group Holding Ltd, will designate government officials to work with 100local companies in the eastern province of Zhejiang, the localgovernment said on its website.

The directives, presented as a means to boost the localmanufacturing industry, did not name the 100 companies subjectto the policy, but state media reports said Alibaba and automaker Zhejiang Geely Automobile Holdings Ltd would beamong the companies.

Alibaba said the plan would not interfere with itsoperations.

"We understand this initiative... aims to foster a betterbusiness environment in support of Hangzhou-based enterprises.The government representative will function as a bridge to theprivate sector, and will not interfere with the company'soperations," Alibaba said in a statement.

Geely did not immediately respond to a request for comment.

Chinese law has long required private companies, includingforeign entities, to establish formal party organizations.

Such groups were once seen as largely symbolic. However, inrecent years, foreign executives have said https://www.reuters.com/article/us-china-congress-companies/exclusive-in-china-the-partys-push-for-influence-inside-foreign-firms-stirs-fears-idUSKCN1B40JUthey have come under increasing pressure to allow partyrepresentatives more sway over business operations.

Domestic companies have strengthened party committees aswell. In 2018, dozens of Chinese banks announced changes totheir articles of association, granting more power to partycommittees.(Reporting by Josh Horwitz; Editing by Miyoung Kim & ShriNavaratnam)

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