Trade War...blows!

Trade war may last for two decades!

Alibaba Executive Chairman Jack Ma told businesses that the country’s trade war with Washington will not be over anytime soon, and that they must be prepared, media reports. Speaking at an Alibaba investor day meeting in Hangzhou, Ma said the conflict could last up to 20 years, with the economic fallout being larger than expected.

“Short term, business communities in China, US, Europe will all be in trouble,” said Ma. “This thing will last long. If you want a short-term solution, there is not a solution.” “We should not focus on this quarter or next quarter or next year’s profit. This is a huge opportunity,” he added.

Hinting at the company’s slowly sliding stock value. “If Alibaba cannot sustain and grow, no company in China can grow. I’m 100% confident in that.” Ma went on to recommend that China look elsewhere for business if the US continues to ramp up the pressure with tariffs.

“When problems come, learn how to hide, learn how to train,” he said. “I believe Daniel [Zhang, Alibaba CEO] and his team will have the wisdom to fight for the future.”

On the other hand at the World Economic Forum’s summer, Mark Leung, the head of China at JPMorgan Chase, which recently applied to set up a majority-owned enterprise in China following new relaxed rules towards foreign securities companies said, “The opening of China’s markets in the last 18 months has been transformational and unprecedented,” said Leung. Despite ongoing trade tensions with the US, Leung said he is confident Beijing’s policy path is on “due course.”