Alibaba Group Holding Ltd, the Chinese e-commerce giant, has announced plans to split off its Cainiao logistics unit, which specializes in parcel deliveries, into a separate entity.

This move is expected to provide greater flexibility for both businesses, as they seek to adapt to changing market conditions and meet the growing demand for e-commerce and logistics services in China and around the world.

The decision to spin off Cainiao comes at a time when Alibaba is facing increasing competition from rivals such as JD.com and Pinduoduo, as well as a crackdown on internet companies by the Chinese government.