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Alibaba founder proposes international e-commerce platform

Alibaba founder proposes international e-commerce platform

Jack Ma, the founder of Alibaba Group, one of the world’s biggest e-commerce platforms, has proposed that governments set up an international online platform to promote trade and encourage better cultural understanding between nations.

“The world is getting more and more complicated: cultural differences, increasing confrontation. Trade is the best means of communication, helping us to understand one another,” said Ma, speaking at the 15th annual Boao Forum for Asia in Hainan, an island province in southern China.

Ma suggested that both businesses and developing countries could take part in establishing the platform. “It could help 80% of businesses, 80% of countries and 80% of young people to unlock their potential over the next 30 years. You will be able to sell goods not only to people from your village and your neighbours, but the whole world,” said the Alibaba founder.

“I hope that this platform will be established, and believe that it is necessary. We need to give all young people and companies the chance to make money. We cannot go back to yesterday’s Internet, only towards tomorrow’s,” he continued.

Trade – a means of communication

Jack Ma condemned all trade sanctions.

“Trade is a means of communication between different countries and cultures,” he said.

Trade, Ma believes, is currently being used as a tool in political conflicts, and stressed, “I am against any sanctions, particularly against small and medium-sized businesses.”

“I believe that freedom and human rights are what trade is all about,” he concluded.

Internet technologies fuelling job creation

Ma also expressed his conviction that the growth of e-commerce will not lead to traditional shops being squeezed from the market:“People worry that technology is killing jobs. It was the same during the industrial revolution. Fortunately, though, even more jobs were created then.”

Ma acknowledged that there are similar concerns today. “However, internet technologies will create more jobs than people think. In addition, more knowledge, more hard-working people will be needed for the work.”

In addition, he noted that Alibaba was continuing to grow rapidly: “We’re now bigger than Walmart. But has Walmart gone away? No; they’re still here. We’re not challenging Walmart; we’re challenging efficiency. Walmart is growing, and we’re growing, but 60% of our demand comes from a new form of consumption.”

“Think about it: Walmart has created jobs for 2.3 million people. ‘Internet Plus’ (helping traditional manufacturers to adopt information and communication technologies – ed.) was created by 7,000 people, but we have created 15 million jobs for China. We did that over 15 years, but Walmart took 60. We’re talking about complementing and assisting – not destroying – each other. We need to act, not negotiate. Otherwise it would take us 150 years [to achieve the current results – ed.],” he said.

Against trade protectionism

Jack Ma also spoke out against trade protectionism.

“We are currently seeing a great number of examples of regional protectionism, which is leading to a large number of conflicts,” he said. - “For example, even before its establishment, the Trans-Pacific Partnership (TPP) asserted that ‘this is your block; this is ours’.”

In Ma’s view, the driver of trade growth in poorer countries (which is being hampered by protectionism, among other things) should be business, and the state and other players will follow: “It is trade that has helped China to grow over the past 15 years. We need to devise new trade technologies to enable underdeveloped countries to reach China’s current level in 15 months.”

The Trans-Pacific Partnership

The agreement establishing the TPP was signed in early February in Auckland, New Zealand. The partnership, which proposes abolishing customs duties on goods and services, brings together Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the US, and Vietnam.

China did not take part in the TPP negotiations. Instead, it is promoting the creation of the Free Trade Area of the Asia-Pacific (FTAAP).

Russia has also taken a cautious attitude to the TPP, and did not take part in the negotiations either. In an article published on the eve of an Asia-Pacific Economic Cooperation summit in November, Russian President Vladimir Putin argued that the closed nature of the TPP negotiations was not helping the region’s development. Even so, Russia is developing its cooperation with countries negotiating on TPP membership, such as Vietnam, with which Russia has signed a free trade agreement.

Putin also argued for the creation of a major economic partnership between the members of the Eurasian Economic Union (EAEU), the Shanghai Cooperation Organization (SCO) and the Association of Southeast Asian Nations (ASEAN), noting that together they account for almost a third of the global economy by purchasing power parity.

The Boao Forum for Asia

The Boao Forum has been held annually since 2001, and has become an important platform for discussing pressing issues affecting the Asian continent. Its slogan this year is “Asia's New Future: New Dynamics, New Vision”. Approximately 2,100 politicians, economists and business representatives are expected to take part in the 83 events planned for the forum.

Source: http://tass.ru (Russian)

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