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Doug Young

Corporate China | Weibo: JD shuffles staff, prepares VNO launch

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A woman walks past a advertisement board of Jingdong Mall (JD.com) in Nanjing, Jiangsu province. Photo: Reuters

Rising e-commerce giant JD.com has been all over the blogosphere this past week, trumpeting some major adjustments in its core e-commerce unit as it also prepares to become one of the first companies to challenge China's three major telcos under a new plan to open up that sector. Of course all of this comes against the backdrop of JD.com's own upcoming New York IPO, which could raise up to $1.5 billion (HK$11.6 billion).

If I was being cynical, I might say that much of this buzz is aimed at keeping JD in the headlines as it prepares to list, especially since last week saw early signs that the red-hot New York market for Chinese IPOs may be starting to cool. But in this case, I do think that much of the buzz coming from JD seems genuine and isn't just hype, as the company tries to position itself to pose a major challenge to e-commerce leader Alibaba.

JD was in the headlines last month when it formed a major equity alliance with leading Internet company Tencent (0700.HK), which saw the pair combine their e-commerce businesses to create a major new player with about a quarter of the market. The biggest casualty of that tie-up has been employees of Tencent's e-commerce site Yixun, which has seen an exodus of employees as the unit prepares to get absorbed by JD.
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Yixun executive Lin Wenqin was getting nostalgic about the recent wave of employees leaving his unit, noting that he had officially accepted the resignation of several groups of workers in the last week alone. He also reflected on how quickly things are changing in China's e-commerce space, making a revealing Cold War metaphor to note how yesterday's enemies can become today's allies.  
While many at Yixun were leaving, one new arrival to JD who was tweeting nonstop on his microblog was Xu Xinquan, who confirmed he has just taken a top spot in JD's international division. Most of Xu's tweets were pointless drivel, including self-serving comments that China would inevitably produce a global e-commerce leader to challenge the likes of Amazon (Nasdaq: AMZN).  
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Xu's appointment and comments hint that JD could soon reveal details of a major global expansion, as part of a campaign to generate buzz before its IPO. One of the biggest surprises for me in the news of Xu's appointment was the fact that he came to JD from the e-commerce division of networking equipment giant Huawei. Frankly speaking, I was completely unaware that Huawei had an e-commerce division, and certainly can't imagine that anyone from that unit would be a serious sector player.

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