Taobao Villages: The Emergence of New Rural E-Commerce Clusters and Their Impact on Chinese Society

Abstract

The thesis delves into the emergence of rural e-commerce clusters known as Taobao Villages, aiming to explore their socio-economic impact within Chinese society. Taobao Villages are rural settlements where a minimum of 50 households, or at least 10 percent of village households, operate individual shops on Taobao.com. Their expansion has led to the creation of new job opportunities and a transformation in rural governance. Structured across three chapters, the thesis begins by explaining the inception and proliferation of Taobao Villages, tracing their origins back to 2009 with Dongfeng Village in Shaji Town, Jiangsu province. It explores the factors behind their emergence, including geographical advantages, robust information infrastructure, the rural residents' entrepreneurial spirit, and their digital skills. Furthermore, it analyzes the role of governmental policies in fostering infrastructure development and public services, alongside initiatives like Alibaba's Rural Taobao launched in 2014. The second chapter investigates the societal impact of these rural e-commerce clusters, highlighting their role in job creation, particularly within the tertiary sector. However, it raises concerns regarding labor rights and the potential environmental sustainability challenges associated with this phenomenon. The last chapter examines the evolution of these clusters in both developed Chinese provinces such as Guangdong and underdeveloped provinces like Heilongjiang, aiming to evaluate their potential to uplift less developed areas. By comprehensively analyzing the emergence, societal impact, and developmental trajectories of Taobao Villages, this thesis portrays these rural e-commerce clusters as potential enhancers of Chinese rural society, provided that concerted efforts are made to ensure fair labor practices and environmental sustainability for their long-term success.