Jack Ma thinks China’s politics bode well for growth
Alibaba’s founder and CEO, Jack Ma, thinks that China’s one-party state offers a level of political stability that the U.S. can’t match. Responding to a question at the Fortune Magazine conference in Guangzhou, Ma said “I am very confident about China,” explaining that the Communist Party ensure China remains on a single trajectory. He contrasted this with the U.S., where he said that “Democrats go one way, then Republicans go another.”
Alibaba’s share price has risen by 97% so far this year
SOURCE: Yahoo Finance
In a second politically charged comment of the week, made at China’s World Internet Conference in Wuzen, Ma turned his attention to foreign tech companies like Facebook and Google, both of which have recently expressed interest in the Chinese market. Ma said these companies need to “follow the rules” if they want access to the Chinese market – ultimately, meaning that they need to adhere to censorship controls (lack of willingness to do this is what saw Google leave the country all those years ago).
Ma also acknowledged that there were tensions between Washington and Beijing, but said he was optimistic that a “serious trade war” could be avoided. Ma has met with President Trump, and taken his turn as diplomat, promising to take a million U.S. “mom and pop” shops online in China. He thinks this is an example of how business people should engage with politics, saying: “Be optimistic and take action.”
Dominion holds Alibaba in its Global Trends Ecommerce Fund.
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