Natalia Antonenko, Researcher at the Gaidar Institute's Quantitative Analysis of Economic Effects Department, shared her opinion on the Gaidar Institute Press new release for 2026 — the book ”Alibaba. Infrastructuring Global China” by Hong Shen. In her review, the expert evaluates the author's academic approach to analyzing the success story of the Chinese technology giant, notes the strengths of the publication, and identifies issues that remain outside the scope of the study but are important for understanding the scale and specifics of the transformation of the global digital economy.
Hong Shen's book is part of a series of pocket editions that were once popular but are now undeservedly forgotten. The paper book is pleasant to hold: in terms of weight and size, it differs little from a smartphone, and the format of the publication fits the content of the text well.
The history of Alibaba's development presented in the book is undoubtedly an outside perspective: there is no personal experience of interaction with the company through the eyes of employees, partners, or customers. The text is the result of academic research, as evidenced by the author's careful use of references (the book can be used as a starting point for delving into the subject) and detailed commentary on the diagrams. All abbreviations are consistently decoded, even well-known ones such as SME, ICT, IPO, and GPS (although terms such as “shrimp” and “underwriters” are used without explanation, so it may be difficult for an unprepared reader in such places). The book is rich in factual material, sometimes even excessively so: the abundance of company names is dizzying, dollars are mixed with yuan, and certain facts are repeated several times (for example, the announcement of the strategic partnership between Alibaba and Yahoo in 2005 appears unchanged three times).
This detached view and reliance on official written sources at some point become insufficient to form a complete picture. During its expansion, Alibaba acquired dozens of assets, and today it comprises about a hundred subsidiaries. What are these assets and how can they be characterized? Investments from both international investment banks and foreign specialized companies (potential partners and competitors) played a huge role in Alibaba's development. What guided these investors in investing such amounts? What was their strategy? What features of the investment climate played into Alibaba's hands? The answers to these questions are superficial, although without a detailed analysis of the Alibaba case, it is difficult to draw conclusions that could be extrapolated to other years, countries, and industries.
Perhaps the most valuable thing that Hong Shen's book offers is not the descriptions of events or the questions it raises, but the reflections they inspire. And this applies both globally and in detail.
For example, is the policy of promoting “champions” effective when the state bets on one company, helping it to become a giant? Alibaba's experience suggests that it is, but what if the state decided to “promote” the wrong company, the wrong markets, or the wrong technologies? The price of a mistake could be high.
Or how, by understanding the principles of the system and acting quickly, it is possible to operate even in conditions of “tightening the screws.” The creators of Alibaba quite cleverly adapted to the requirements of the state, manipulating the company's ownership structure and ultimately coming out on top.
Or how a local company can benefit from the competitive battle between two international giants entering the market. This is what happened when Yahoo found a partner in Alibaba to fight eBay. Alibaba emerged as the sole winner from this combination.
Or about unusual examples of interaction between the state and business. The authorities of several cities involved Alibaba in the formation of “smart city” systems, integrating a range of services (doctor's appointments, utility payments) with marketplace platforms. Such a simple and yet complex idea.
The book was published in English in 2022, so readers opening it in 2026 can keenly feel the speed at which the modern economy is changing, especially in the field of ICT and new business ideas. It does not tell how Alibaba coped with the pandemic, new waves of US- China trade wars, and other changes in the geopolitical situation. But to understand where the company is today, it is undoubtedly necessary to know where it started.