Alibaba promises Trump a million new jobs
- Author: Terrell Bush Jan 12, 2017,
Jan 12, 2017, 0:08
Alibaba wants to transform the retail sector with a US$2.6 billion buyout that it says will break down the barriers between offline and online.
"We had a great meeting", Trump told the press pool at Trump Tower. Trump tweeted after the meeting. "And we also think that China and United States of America relationship should be strengthened, should be more friendly and do better", said Ma.
The details of Alibaba's plans on how the 1 million jobs will be created, however, remains to be vague, hinged on the idea that American businesses should open themselves up to selling their products and services through the Chinese online commerce portal.
Providing Chinese consumers with access to goods made outside of China has always been a key strategy for Alibaba and Ma. Since his campaign did increase chances of a trade-war, the meeting is a good indication for both countries' relations.
Among the unresolved issues is that the US Trade Representative last month returned Alibaba to a group of blacklisted online retailers over concerns the firm was not doing enough to curb counterfeiting on its platforms.
Close to 7,000 brands in the US including Costco Wholesale and Levi's now are on the Tmall in Alibaba, said a spokesperson for the e-commerce giants. With the start of 2017, it seems that the company will comply with its promise of 1 million recruitments in a total span of five years.
Trump told reports the two men had a "great meeting" and would do great things together, while Ma called Trump "smart" and "open-minded", and there was no trace of a future trade war between the two nations.
While manufacturing has been dominated by China for decades, American farmers may be the biggest beneficiaries to the buying platform according to Jack Ma.
"We'll talk to you about that at another time", the president-elect said, referring to a planned press conference Wednesday. Alibaba is not providing the jobs itself, it is hoping promoting small businesses will have a job-creating effect. Intime operates 29 department stores and 17 shopping malls across urban China which could give Alibaba a strong foothold.
Alibaba already owns 27.82 % ofIntime's shares, while its founder (Shen Guo Jun) also owns 9.17 % of shares.
Alibaba also sees an opportunity in helping Chinese brands upgrade their computer systems, letting them adjust inventories more quickly in response to demand - an undertaking that now requires several layers of reporting between stores and the brand. Trump has so far taken a harder line on China than other foreign leaders on many issues, including Beijing's territorial claims over Taiwan and a vast area of the South China Sea, as well as the USA trade deficit.
By doing that, up to a million new jobs could be created at a million small businesses, Alibaba said.