Tags: Alibaba | Jack Ma | China | Startup

Alibaba's Ma Predicts Next Year Will Be 'Tough' for China's Economy

Image: Alibaba's Ma Predicts Next Year Will Be 'Tough' for China's Economy

By    |   Wednesday, 11 Nov 2015 01:30 PM

Alibaba Group Holding Ltd. Chairman Jack Ma said 2016 could be economically difficult for China.

 "I believe the next five to 15 months will be a tough time for China for various reasons, of course, one, the anti-corruption will definitely have some effect," Ma told CNBC.

Ma does not see a significant decline in China during that time, adding that the government's 7 percent growth target is still reachable. But even growth of 5 to 6 percent is enough so long as the country invests in the right places and producers focus on quality over quantity, CNBC reported.

He said the Chinese economy will only be sustainable once it is "clean" and "transparent," and the next five to 15 years will be good times for the country, CNBC explained.

Meanwhile, Alibaba will invest in startups in the U.S. and help bring them to China as part of its expansion plan, said Ma, chairman of the e-commerce platform.

“I want our team to invest in high-technology startups in the states and help them to grow,” he said in an interview on Bloomberg TV on Wednesday in Beijing. “Not only with the money but by helping them to come to China one day. This is a huge market.”

Alibaba plans to bring goods from U.S. small and midsize businesses to consumers in Asia, where there is demand for unique and high-quality products, Ma said as the company was wrapping up its Singles’ Day shopping promotion. The goal is to assist U.S. businesses in becoming e-commerce companies like Amazon.com Inc. using Alibaba services, including its logistics, payments operation and cloud computing, he said. 

“We do not go there to compete” with Amazon, he said, referring to the fact that Alibaba doesn’t sell its own goods. “We’re not an e-commerce company. We want a lot of people to be like Amazon.”

Ma said earlier that the company is considering bringing the 24-hour online Singles’ Day event on Nov. 11 to the U.S. and the U.K. Transactions through Alibaba reached $14.3 billion by midnight in China.

The company got a boost after China’s retail sales accelerated in October, overcoming the slowest economic growth in 25 years. Retail sales climbed 11 percent, the quickest gain this year, as the nation’s leaders seek to re-balance the economy toward consumption and services from manufacturing.

Alibaba’s shares fell 2.8 percent to $79.19 at 11:32 a.m. in New York, extending a 22 percent decline this year through Tuesday.

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Alibaba Group Holding Ltd. Chairman Jack Ma said 2016 could be economically difficult for China.
Alibaba, Jack Ma, China, Startup
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2015-30-11
Wednesday, 11 Nov 2015 01:30 PM
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