Alibaba and Norinco Join Forces for Beidou



Considering to be an e-commerce giant on the cutting edge of trending topics and products, Alibaba is surprising may people with their latest collaboration. Alibaba has had a hand in numerous business sectors ranging from healthcare and online sperm donation to your everyday bargains you would expect to find on their online shopping platforms. Alibaba will be partnering with China North Industries Corporation or as many recognize it as, Norinco.

Norinco is a Chinese state owned, producer of machinery and arms. Which is what makes many people surprised that Alibaba would go into business with this type of sector. Though Alibaba is not investing into the arms market directly, the two are collaborating on a new project. Alibaba and Norinco will each have 50% of a hold in Qianxun Weizhi Internet that has an approximately value of $310 million.

The Project: Beidou

With the Qianxun Weizhi Internet there is the Beidou project, which is what the two companies are interested in. basically, Beidou is China’s answer to GPS that has been developed in China. The Qianxun Weizhi Internet is going to be used to develop applications and technology that is going to work with Beidou to ensure that Chinese citizens are going to get to enjoy the use of this technology no matter where they are at.  Alibaba’s involvement in this project is to ensure that people are seeing they are encouraged by the Chinese industrial policy and working with the government in whatever way they can provide.

About Beidou

Beidou is not new by any means, as it has attracted billions in investment. However, the project simply lacks the technology in order to make this a popular tool that people turn to. In addition, there are some fears that if this were being used, any country could disable their satellite signals with the use of satellite guided weapons. The system is already being used by a few, but the hope is that Alibaba can help to expand the number of users.

Alibaba’s spokeswoman, Melanie Lee said:

“Alibaba Group participated in this location-based services project in light of our strength in cloud computing and big data.”

If any company can ensure that Beidou gets an even bigger slice of the market, it will be Alibaba. However, they are also getting some perks out of the deal as well.

The Perks for Alibaba

According to Lee:

“We hope to be able to provide businesses and developers with better location-based services.”

So how will this help Alibaba? If more business, including shipping companies, have better services to locate homes and other areas, they are going to do their job in a timelier manner. Delivering of goods that are ordered from e-commerce is one of the hot topic issues among all providers on the online shopping platform. With this technology, Alibaba has the ability to showcase while they are still considered one of the biggest competitors on the market.

About Author

Social Brand Watch (SBW) is a collection of experts in digital, mobile and social media in China. SBW was created to complement Resonance's China Social Branding Report, a bi-weekly report focusing on modern marketing methods of the world's top brands in China.

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