China’s Alibaba.com is looking to expand into the U.S. market amid increasing competition in the Chinese market coupled with weak consumer spending. During an exclusive interview with Rest of World, Alibaba President Kuo Zhang said Alibaba is optimistic about the United States and would try to enter the market by “wooing” mom-and-pop businesses in the country.
The e-commerce giant makes a large portion of its revenue by connecting business owners with suppliers that can bulk supply virtually anything through Alibaba Group Holding Ltd. (NYSE: BABA)‘s online platforms. However, after dominating the Chinese market for well over a decade and transitioning to lucrative ventures such as cloud computing and artificial intelligence in recent years, Alibaba is fielding intense competition from a growing number of local players.
Alibaba is no longer the only major player in the game, particularly in China, and decreased spending by consumers has reduced the pie so much that Alibaba and other tech companies are now looking to the U.S. as a potential market for their services. The appeal of foreign markets has grown even more in recent months, thanks to reduced economic growth in the Chinese tech industry as well as Beijing’s publicized crackdown on the sector.
Alibaba already has eight million users in the U.S., making the country its top market on the globe. The e-commerce giant now wants to show even more U.S. businesses how easily they can source supplies from virtually anywhere on the globe through the e-commerce giant. The company held a conference in Las Vegas in September and attracted more than 2,000 attendees who ranged from farm owners to jewelry distributors.
Business owners had the chance to interact with Alibaba officials during the conference and learn about artificial intelligence (AI)-assisted factory sourcing as they toured various stalls. Zhang was also present at the event, and he talked about Alibaba’s fierce competition with Temu, the importance of the American market and why global trade is still vibrant even if the next U.S. president imposes more import taxes on Chinese exports.
The e-commerce company’s recent decision to focus on the U.S. market comes amid tense economic relations between China and the United States. President Joe Biden’s administration has imposed a 100% tariff on electric cars manufactured by Chinese automakers to protect the U.S. auto industry from what it terms “unfair competition” but Beijing argues that the levy is against WTO trade policies and will harm the world’s efforts to adopt renewable energy and green technology.
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