Joseph Tsai to Succeed Daniel Zhang as Chairman of Alibaba Group: Leadership Transition Marks Alibaba’s Second Succession in Recent Years

Alibaba Group, the Chinese tech giant, has announced that Joseph Tsai, the executive vice chairman and co-founder, will take over as chairman, succeeding Daniel Zhang. This leadership transition marks Alibaba’s second succession in just a few years, following the departure of founder Jack Ma in 2019. Eddie Wu, the chairman of Alibaba’s e-commerce platform Taobao and Tmall Group, will replace Zhang as the chief executive officer (CEO) and join the company’s board of directors. These changes will officially take effect on September 10, 2023, as stated by the company.

Daniel Zhang will continue to serve as the chairman and CEO of Alibaba’s cloud unit, highlighting the importance of Alibaba Cloud Intelligence Group as it progresses towards a full spin-off. Zhang expressed his confidence in the future of the company, emphasizing the exciting new opportunities brought about by the emergence of generative AI in the cloud business.

Eddie Wu, a co-founder of Alibaba, has been with the company since its inception in 1999, serving as the technology director. He expressed his gratitude for the trust placed in him by the Alibaba Group board of directors and stated that he is honored to succeed Daniel Zhang as Alibaba’s CEO. Wu reassured stakeholders that while the company undergoes a transformation in its corporate organizational and governance structure, Alibaba’s mission remains unchanged.

This leadership transition comes on the heels of Alibaba’s largest restructuring in its 24-year history, announced a few months ago. The company is splitting into six separate units, including cloud, e-commerce, logistics, media and entertainment, each with its own CEO and board directors. These units will have the flexibility to pursue separate listings or fundraisings.

Alibaba is renowned as China’s largest e-commerce company, boasting over 900 million active users annually on its Taobao and Tmall platforms. Additionally, it operates the country’s largest cloud computing and digital payment platforms. However, both Alibaba and its co-founder Jack Ma have faced significant challenges due to Beijing’s regulatory crackdown in recent years.

Following Ma’s public criticism of Chinese financial regulators in late 2020, the highly anticipated initial public offering (IPO) of Ant Group, an affiliate of Alibaba that owns Alipay, was abruptly canceled. This event marked the beginning of a regulatory crackdown on the country’s internet industry and private sector. Alibaba Group was fined a record-breaking $2.8 billion for violating antitrust rules. Jack Ma subsequently retreated from public view, spending more time overseas.

However, Ma has recently made a more visible return, with appearances in mainland China and public lectures. In March, he reappeared before Alibaba announced its restructuring plan, leading analysts to speculate that his return was a strategic move by Beijing to alleviate concerns within the private sector. Ma has since focused on research and teaching, joining the University of Hong Kong’s business school as a professor.

The upcoming leadership changes at Alibaba Group indicate a continued commitment to navigating the evolving landscape of China’s tech industry. With Joseph Tsai as chairman and Eddie Wu as CEO, Alibaba aims to build upon its success and capitalize on emerging opportunities in e-commerce, cloud computing, and other sectors. The company’s ability to adapt to regulatory changes and maintain its position as a leader in the Chinese market will be closely watched by industry observers and investors alike.