Chinese tech giant Alibaba has revealed that Joseph Tsai, the current executive vice chairman, will replace Daniel Zhang as the CEO in September this year. Zhang stated that it is the right time for him to step down as the company plans to implement a full spin-off of its advanced cloud computing unit.
Alibaba, headquartered in Hangzhou, is a leading Chinese technology company with operations in cloud computing, e-commerce, logistics, media and entertainment, and artificial intelligence. Zhang will continue to serve as the chairman and CEO of Alibaba Cloud Intelligence Group, a part of the company, following the leadership shift.
Due to the Chinese government’s tougher limitations on the domestic digital sector, Alibaba has encountered considerable obstacles in recent years. The company announced a substantial restructuring in March, separating itself into six business areas. The appointment of Joseph Tsai as the new CEO marks a significant leadership change for Alibaba as it navigates through evolving industry dynamics and regulatory changes in China.
Following Alibaba’s decision in March to split the company into six business groups, the announcement of Joseph Tsai as the next CEO comes as a significant development. The reorganisation plan, considered one of the most significant in Alibaba’s history, aims to enable each business group to seek external funding for expansion and potential public listings.
Daniel Zhang stated in a statement that this timing is perfect for him to transfer as Alibaba concentrates on the full spin-off of Alibaba Cloud Intelligence Group. Zhang emphasised his commitment to ensuring a smooth transition in the coming months by working closely with Joseph Tsai and Eddie Wu.
Eddie Wu’s accomplishments were highlighted by Joseph Tsai, who emphasised his critical role in building the company’s technology-based platforms. Wu, one of Alibaba’s co-founders and chairman of Taobao and Tmall Group, was instrumental in developing the technical platforms, notably the proprietary monetisation engine on Taobao and Tmall. Tsai stated his eagerness to work with Wu to propel the company into the next phase of growth through technology and innovation.
It’s worth noting that Jack Ma, another co-founder of Alibaba, has been largely absent from the public eye since 2020, following his criticism of Chinese regulators. He has been sporadically seen outside of China, with infrequent appearances in the mainland.