Alibaba executive warns trade war pain will be felt global: SCMP

[webfact]

Alibaba executive warns trade war pain will be felt global: SCMP

 

FILE PHOTO - Alibaba Group Holding Ltd Executive Vice Chairman Joe Tsai speaks during an interview with Reuters in Hangzhou, Zhejiang province, China, September 10, 2015. REUTERS/John Ruwitch/File Photo

 

HONG KONG (Reuters) - The escalating trade war between the United States and China is careening towards a "cold war or geopolitical war" that will reverberate around the world, a senior executive at Alibaba Group has said.

 

Joe Tsai, Alibaba's executive vice chairman, accused the United States of starting the trade war over "an unfounded fear" that China's rise threatened the national security of the American people, the South China Morning Post said on Thursday.

 

Tsai was speaking at a conference hosted by the newspaper in Kuala Lumpur on Wednesday, a day after U.S. President Donald Trump repeated his threat to slap tariffs on an additional $267 billion of Chinese imports.

 

Alibaba, China's biggest e-commerce firm, owns the Hong Kong-based South China Morning Post.

 

"It is really ill-advised for the United States to launch a war of some sort targeting China, thinking that they can treat China like the way they treated Russia by isolating the economy and bringing on pain," Tsai was quoted as saying.

 

"We are so integrated that the pain is going to be felt all over the world," he added.

 

Alibaba co-founder Jack Ma told the conference via video link that he believed the United States would "suffer more" from the dispute, the newspaper said.

 

Ma said in September trade frictions between the world's two largest economies could last for two decades and would be "a mess" for all parties involved.

 

Ma had a high-profile meeting with U.S. President Donald Trump last year where Ma promised to create one million jobs in the United States linked to small merchants selling items on Alibaba platforms.

 

Trade relations have since deteriorated between China and the United States in a tit-for-tat escalation in tariffs.

 

(Reporting By Anne Marie Roantree; editing by Darren Schuettler)

 

-- © Copyright Reuters 2018-10-11

[pegman]

This guy is right. Between Trump causing inflation with his tax cuts to the rich and corporations, which in turn causes interest rates to rise, plus the tariff war a American recession is on it's way. Then it will be the Obama economy. 

Edited October 11, 2018 by pegman

[IAMHERE]

The guy is right. Let's stop calling it a 'war' and begin using the word 'spat'.  The US is having a 'trade spat' with unfair trading partners. 

[ReMarKable]

2 hours ago, car720 said:

At the end of the 1920s, the United States boasted the largest economy in the world. With the destruction wrought by World War I, Europeans struggled while Americans flourished. Upon succeeding to the Presidency, Herbert Hoover predicted that the United States would soon see the day when poverty was eliminated. Then, in a moment of apparent triumph, everything fell apart. The stock market crash of 1929 touched off a chain of events that plunged the United States into its longest, deepest economic crisis of its history.

 

Sound familiar anyone?????

No. Trump has never tried to end poverty, in fact, he is increasing poverty in the USA.  He says he is championing the workers, but these are only words.

[spidermike007]

There is no doubt about this. Trump is playing with fire. He has little understanding about the economy after bankrupting five companies. His bluster and personal attacks make the US less relevant and less influential by the day. Globalism is here to stay. Stop with the false sentimentality about the past. And if you are serious, walk the walk. Both Tiny Don and Ivanka made all of their products overseas. Take about NOT putting their money where their mouth is. Fake policy. Fake man. Fake agenda. Fake slogans. 

 

Tiny Don. Moving America backwards and making America less great daily. The art of I cannot make a deal to save my life. 

[Tug]

Donald is playing by Hoover’s play book he is the one who helped create the Great Depression.trump adds an extra wrinkle with a heaping helping of division of our country he should have a new slogan ( making America weaker every day)

[iroc4life]

5 hours ago, ReMarKable said:

No. Trump has never tried to end poverty, in fact, he is increasing poverty in the USA.  He says he is championing the workers, but these are only words.

Tell that to all the now employed people and the record numbers getting off the dole ????

[iroc4life]

They are lashing out, Trump will put more tariffs on all imports from china unless they come to the table, and he will win or china will pay, Period. The rest of the world can take care of their own trading ???? 

[quandow]

3 hours ago, Tug said:

Donald is playing by Hoover’s play book he is the one who helped create the Great Depression.trump adds an extra wrinkle with a heaping helping of division of our country he should have a new slogan ( making America weaker every day)

Yeah, but he has the greatest genius in the world - Kanye - who has his back.

[Basil B]

Am I surprised that the executive vice chairman of Alibaba is getting a little hot under the collar, I am sure Alibaba exports more to the free world than Ebay export to China. 

[Credo]

Well it seems that some big companies are feeling the pinch.   I don't know that Trump cares about the workers, though:

 

Ford Prepares for Mass Layoffs After Losing $1 Billion to Trump's Trade Tariffs, Report Says

Ford is having a bad year in 2018. Its stock is down 29%, and the tariffs imposed by President Trump have reportedly cost the company $1 billion, as the company is in the midst of a reorganization. Now, the company is announcing layoffs.

Jim Hackett, Ford’s CEO, is working to engineer a $25.5 billion restructuring of the automaker, hoping to cut costs and remain competitive, the Wall Street Journal reports. But auto sales are down, and one reason is the trade tariffs that Trump has imposed on metals and other goods.

 

http://fortune.com/2018/10/09/ford-stock-today-layoffs-trump-trade-tariffs/

[Ulic]

Too complicated and above my pay grade. I do know that China copies/pirates patented products. I do know China forces technology transfer, I do know China restricts access to its markets by foreign companies. I also know that foreign companies complain about this but continue to open production facilities in China. I know American/multinational companies do not care one bit about American workers only maximizing their profits. I don't know any American /Western workers that would like their jobs outsourced to third world countries with virtually no environmental standards and questionable human rites standards so their products can be sold for a few percent less so companies can maximize profits. Yes, there has to be a balance. I just don't know what it is.

[Ulic]

17 minutes ago, Credo said:

Well it seems that some big companies are feeling the pinch.   I don't know that Trump cares about the workers, though:

 

Ford Prepares for Mass Layoffs After Losing $1 Billion to Trump's Trade Tariffs, Report Says

Ford is having a bad year in 2018. Its stock is down 29%, and the tariffs imposed by President Trump have reportedly cost the company $1 billion, as the company is in the midst of a reorganization. Now, the company is announcing layoffs.

Jim Hackett, Ford’s CEO, is working to engineer a $25.5 billion restructuring of the automaker, hoping to cut costs and remain competitive, the Wall Street Journal reports. But auto sales are down, and one reason is the trade tariffs that Trump has imposed on metals and other goods.

 

http://fortune.com/2018/10/09/ford-stock-today-layoffs-trump-trade-tariffs/

The problem as I see it is Trump should not be fighting with Europe and Canada with similar living standards, environmental protection, values etc... The issue is with Mexico-China and other low wage, no environmental standards countries. Of course, China takes things to the next level with copyright piracy, technology transfer, and restriction to its markets. Even more, its state-sponsored hacking/theft of technology and South China Sea nine-dash line claims which are ludicrous is destabilizing the world. 

[Kiwiken]

Everything is primed for a major readjustment. 10 years of speculative spending since 2008. China over extended debt wise and the USA stifling free trade World wide another major recession is about to hit. Things will look pretty dismal by 2020 for everyone. When i studied Economics in the 1980's i remember my tutor said there was always a 60 year boom and bust cycle. We never learn. And so the cycle must begin again

[spidermike007]

1 hour ago, Kiwiken said:

Everything is primed for a major readjustment. 10 years of speculative spending since 2008. China over extended debt wise and the USA stifling free trade World wide another major recession is about to hit. Things will look pretty dismal by 2020 for everyone. When i studied Economics in the 1980's i remember my tutor said there was always a 60 year boom and bust cycle. We never learn. And so the cycle must begin again

And a major recession every 15 years or so. We are due for a major reckoning. I predict property prices will drop by 50% or more in the US, and the UK. The Dow? Down to 10,000 or so. The economy is in a major bubble mode at the moment. Trumps policies will not help long term. Only a very short term boost to corporate profits. 

[Johnnyngai]

10 hours ago, iroc4life said:

They are lashing out, Trump will put more tariffs on all imports from china unless they come to the table, and he will win or china will pay, Period. The rest of the world can take care of their own trading ???? 

Look pass the modern infrastructures in the big cities, China is still a third world country.

When I visited the wet markets in mid size Chinese cities, I found that the meat and fish available are suitable for dogs and cats only. 

Third world people like the Chinese can tolerate much hardship,

because they have been living under such harsh condition ever since armed European tall ships visited 170 years ago.   

I believe this trade war will have a lose lose outcome.  Being hungry is nothing new for most Chinese.

The worst that could happen is the Chinese economy will retreat for 5 years.     

[candide]

13 hours ago, iroc4life said:

They are lashing out, Trump will put more tariffs on all imports from china unless they come to the table, and he will win or china will pay, Period. The rest of the world can take care of their own trading ???? 

Actually, for the time being, It's not bad for them. The exchange rate of the RMB is lower so it compensates for the tariffs and makes non-taxed products cheaper. Actually, the trade deficit with China has increased. It also makes their products cheaper. They can also tax now US products that compete with Chinese products in China.