Alibaba Offers $7 Billion of Subsidies to Defend Turf in China

Alibaba Group Holding Ltd is offering 50 billion yuan ($7 billion) of subsidies for food deliveries and online retail to boost its instant commerce business in China as competition heats up.

The massive subsidy will benefit both consumers and merchants over the next 12 months, Alibaba’s e-commerce arm Taobao said Wednesday in a statement on its official WeChat account.