The 2018 annual meeting of the Boao Forum for Asia was held recently. Jack Ma (founder of Alibaba) talked about the China-US trade war.
Jack Ma believes that it is particularly unwise for the two major powers to start a trade war. Trading is a serious issue, it is not merely about goods, but mutual respect between countries.
Now that the United States has arbitrarily initiated a trade war, which has seriously affected China’s trade income and even affected the world’s trading environment.
Jack Ma also said that if the China-US trade relationship continues to deteriorate, then his promise made to Donald Trump of creating 1 million new jobs for the United States will be set aside.
“Alibaba will create 1 million U.S. jobs by enabling 1 million American small businesses and farmers to sell American goods to China and Asian consumers on the Alibaba platform,” Ma said during his meeting with US president Donald Trump last year.
In return, Trump publicly praised Ma as one of the world’s best entrepreneurs.
So how much loss will it cause to the US? The total working population of US is around 150 million. One million jobs account for 0.7% of the whole working population in the United States. Take Amazon as an example, it has about 270,000 employees, therefore one million new jobs are equal to 4 new Amazon.
Therefore the use of trade wars between two major powers in resolving contradictions is very unwise.
How influential is Alibaba?
Alibaba is not only the largest e-commerce company in the world (surpassing Amazon since October 2017), but also the largest retailer in the world (surpassing Wal-Mart since 2016). Alibaba Group runs numerous e-commerce platforms including Alibaba.com (C2C), Taobao (C2C & B2C), and TMall (B2C). As of May 2018, its monthly active user count reached 617 million making it the most important channel if any company / country wants to sells its products in China.