Jack Ma’s warning

Background

 He is also a political force to be reckoned with both recent US Presidents – Donald Trump and Barack Obama. His business continues to grow from strength to strength. Willy Lam, adjunct professor at Center for China Studies at Chinese University of Hong Kong said, “(Ma) has displayed vision and gusto in expanding his e-commerce empire. Even more striking is his determination to leverage Alibaba's massive earnings to spearhead research in high-tech, particularly AI, cloud computing, "deep learning" and related know-how."

Alibaba Group Holding Limited is a Chinese e-commerce, retail and technology conglomerate founded in 1999 by Jack Ma and Leng Lei that provides consumer-to-consumer, business-to-consumer and business-to-business..

Jack Ma’s warning

Analysis

Alibaba founder Jack Ma is among the many business leaders currently attending the World Economic Forum in Davos. During the conference, he warned nations to not use trade as a weapon in the larger perspective of geopolitics. His statement comes during a period where analysts and experts have signaled concerns that the US is trying to restrict trade with Chinese conglomerates as tensions between the two nations grow. "Don't use trade as a weapon," Ma said Wednesday at the World Economic Forum in Davos, Switzerland. "It's so easy to launch a trade war, but it's so difficult to stop the disaster of this war." He also added the trade is not something that can be stopped, and governments need to accept that as a reality. He added, “I think it is impossible to stop the trade," he said. "The world needs trade. If the trade stops, the wars start."

Jack Ma’s warning

Assessment

Our assessment is that Jack Ma’s warning could specifically be targeted at US and China, which are two of the largest economies in the world. US President Donald Trump has voiced an increasingly protectionist rhetoric and has complained often about unequal and unfair trade practices with regards to other nations, especially China. In the recent months, a number of acquisitions of US companies by Chinese conglomerates have been blocked. 

Sources: Synergia Foundation