Subscribe free to our newsletters via your
  Energy News  




Subscribe free to our newsletters via your




















TRADE WARS
Ma's million jobs pledge more PR than promise: analysts
By Benjamin CARLSON
Beijing (AFP) Jan 11, 2017


Alibaba founder Jack Ma and Donald Trump made headlines with the Chinese entrepreneur's attention-grabbing pledge to create one million US jobs, but analysts say the move is more about good PR than substance.

The splashy promise at Trump Tower was a strategic decision by Ma to win goodwill from the next US president and hedge against political risks to Alibaba's vast online shopping business over counterfeits, independent e-commerce analyst Li Chengdong told AFP.

"We don't have to take the one million job promise too seriously," Li said.

In the short term, economists are sceptical. Such a figure would represent almost one percent of all jobs in the United States, making the firm one of the country's largest private employers, said Christopher Balding, professor at Peking University's HSBC Business School.

China's largest online shopping portal has been on the defensive since the office of the US Trade Representative last month put its massive electronic sales platform Taobao on its annual blacklist, saying it was not doing enough to curb sales of fake and pirated goods.

Although inclusion on the blacklist carries no penalties in itself, it dealt a blow to Alibaba's efforts to improve its image and boost international sales.

"This (pledge) is more made to relieve its PR pressure, so Alibaba won't become a target of attack after Trump takes office," Li added. "As Alibaba's counterfeits problem is indeed quite serious, it is an easy target."

- 'Good relationships' -

This month Alibaba filed a lawsuit in China against two vendors for allegedly selling fake Swarovski watches on Taobao, portraying the move as the first time an e-commerce site had taken a counterfeiter to court in the world's second-largest economy.

"Jack Ma is a smart guy and if there is anything being a major businessman in China teaches you it is the importance of having good relationships with the leaders," Balding added.

Alibaba and Taobao have long been accused of providing a platform for the sale of knockoff brand-name goods.

Items for sale include a variety of Trump-related products, including "Make America Great Again" hats that sell for $25 on Trump's website -- available for 3.5 yuan (50 cents) Wednesday.

Analysts say Alibaba wants to enhance its imports of US merchandise for Chinese consumers.

"It is not necessarily to create more jobs in the US, it is simply providing one more sales channel for them," Nell Lu, analyst with Shanghai's Business Connect China consulting firm, told AFP.

Scandals over food safety and milk powder have eroded Chinese shoppers' confidence in domestic goods, fuelling lively informal grey markets in food, vitamins, and medicines from all over the world.

While dominant in its home market, and making forays into Russia and Southeast Asia, Alibaba's efforts in the US have so far failed to find the same success.

Its business model as a platform offers US consumers no extra benefits, Li said, and it faces dominant local competitors such as Amazon and eBay.

Even so, Ma wants half of Alibaba's revenue to be international within 10 years.

The firm's Ant Financial affiliate, which operates digital payments service Alipay, and Tmall International are likely to be its "primary vehicles" for gaining a US foothold, Jeffrey Towson, professor at the Peking University Guanghua School of Management, told AFP.

- 'Open-minded' -

"Alibaba is serious about the USA," he said, adding the Trump meeting was "good PR" for the firm and introduced Ma to many Americans who had not heard of him.

"Every business person in China, and globally, now knows that what Trump wants to hear about is US jobs. So that is what they are all now saying."

After the meeting the two multi-billionaires praised one another, with the Chinese tycoon calling the president-elect "very smart" and "very open-minded".

Trump's nominee for the Securities and Exchange Commission (SEC), Jay Clayton, has ties to Alibaba from working on its IPO on the New York Stock Exchange, the largest public offering in history.

In May Alibaba disclosed that the SEC was investigating its accounting practices and had opened a probe "into whether there have been any violations of the federal securities laws".

China's foreign ministry said Wednesday it had noted reports of the Trump-Ma meeting and said the US and Chinese economies were "highly complementary".

An editorial in the China Daily newspaper said the meeting would reassure those worried about "havoc" from the incoming administration.

It added that people should not "rigidly interpret" the jobs pledge to mean full-time corporate positions, but rather focus on how it would help small businesses and American farmers sell to the Asian market.


Comment on this article using your Disqus, Facebook, Google or Twitter login.

Thanks for being here;
We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain.

With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords.

Our news coverage takes time and effort to publish 365 days a year.

If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.

SpaceDaily Contributor
$5 Billed Once


credit card or paypal
SpaceDaily Monthly Supporter
$5 Billed Monthly


paypal only

.


Related Links
Global Trade News






Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle

Previous Report
TRADE WARS
HSBC mulls moving business ahead of Brexit
London (AFP) Jan 10, 2017
HSBC chairman Douglas Flint on Tuesday warned that the banking titan could move activities from London to continental Europe ahead of Brexit. Britain is due to trigger Article 50 by late March, kicking off a two-year process to leave the European Union. The nation's financial sector has long feared the loss of "passporting" rights - which allows EU member states to trade across national ... read more


TRADE WARS
China to build $1.5 billion power line across Pakistan

MIT Energy Initiative report provides guidance for evolving electric power sector

Toward energy solutions for northern regions

Energy-hungry Asia slowing down, lender says

TRADE WARS
Scientists discover a molecular motor has a 'gear' for directional switching

Rolling out an e-sticker revolution

Tenfold jump in green tech needed to meet global emissions targets

Tesla starts mass production of batteries

TRADE WARS
New York sets bar high for offshore wind

The answer is blowing in the wind

French power group aims to double wind capacity

New rules for micro-grids in Alberta

TRADE WARS
An ordered route to improved performance of solar cells

U.S. offshore regulator joins solar power trade group

Off-grid power in remote areas will require special business model to succeed

Vortex to acquire a 365 MW solar energy portfolio in UK

TRADE WARS
France sells off Engie stake to finance Areva rescue

EU clears French rescue of troubled nuclear firm Areva

UK asks regulators to assess Chinese nuclear reactor

Controversial nuclear power plant near New York to close

TRADE WARS
Dual-purpose biofuel crops could extend production, increase profits

Open-source plant database confirms top US bioenergy crop

WSU researchers discover unique microbial photosynthesis

Potential biofuel crops in Hawaii may successfully sequester carbon in soil

TRADE WARS
Asian dynamics give oil prices some support

Putin's spokesman expects tough, but listening, Tillerson

After $900 million sale, Tullow primed for growth

Oil, Trump, leave Mexico in dire economic straits

TRADE WARS
Obama again defends climate deal

Global warming hiatus disproved yet again

Scientists disprove global warming took a break

Tillerson called to testify on climate issues




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News






The content herein, unless otherwise known to be public domain, are Copyright 1995-2017 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement