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Alibaba Can’t Create 1 Million US Jobs As Promised Due To US –China Trade War: Jack Ma


09/20/2018


Alibaba Can’t Create 1 Million US Jobs As Promised Due To US –China Trade War: Jack Ma
The escalating trade tensions between the United States and China has created an impediment for job creation in America and thus Chinese e-commerce giant Alibaba would not be able to meet its promise of creating 1 million jobs in the country, said the firm’s Chairman Jack Ma. This was reports in the Chinese news agency Xinhua.
 
Ma had earlier states that the current trade war between the two largest economies of the world could drag on for a decade and therefore the Chinese authorities should look to shift focus on doing trade along the “Silk Road” trade route which has countries in regions of Africa, Southeast Asia and Europe.
 
The plan by the Chinese e-commerce giant of brining in about one million small U.S. businesses on to its platform for selling their products to Chinese consumers was laid out by Ma about two years ago when he had met with the U.S. President Donald Trump.
 
“This commitment is based on friendly China-U.S. cooperation and the rational and objective premise of bilateral trade,” Ma told Xinhua on Wednesday.
 
“The current situation has already destroyed the original premise. There is no way to deliver the promise.”
 
Ma had said that his company would encourage American small businesses to get listed as sellers on Alibaba marketplace Tmall and Taobao and gad calculated that every small business that joined the platform would have to hire at least one person to efficiently manage the new sale volumes.  This was apparently his calculation of creating a million American jobs.
 
But the comments made by Ma apparently did not affect investors as shares of the company rose by 3.8 per cent on Wednesday. So far this year, the firm has seen its stocks going down by 5.7 per cent.
 
In the third round of tariffs, Trump on Monday imposed new tariffs of 10 per cent on a new list of imported Chinese goods worth $200 billion. He also issued threats of imposing further tariffs on about $267 billion more of Chinese goods is there was retaliatory action from China.
 
China however responded to the latest tariffs by the Trump administration by imposing tariffs a day later on American products imported into the country worth about $60 billion. However, the earlier announced rate of tariff was reduced   
 
In recent weeks, Ma has made a number of comments on the escalating trade spat and has expressed support for the position that China has taken about the manner in which additional tariffs would impact business.
 
“The U.S. like competition, China likes harmony, they’re two different cultures,” Ma said at an investor conference in Shanghai on Tuesday.
 
Trade frictions would lead to “a mess” for all parties involved, Ma said. He is scheduled to relent from the post of Alibaba chairman in a year.
 
 “We should work more in Africa, SEA (South East Asia), Europe,” he said
 
(Source:www.xinhuanet.com)