it's so easy to launch a wall but it's
so difficult almost impossible sometimes
the Terminator war the Iraq war
Afghanistan war is that finished no
trade war I believe one thing when trade
stops the world starts trade is
something that people start to
communicate trade is something people
exchange culture and valley and I will
be happy if China USA agree on something
and Alibaba business business model
destroyed I would destroy other power
model by stopping the war fitting
because how can you imagine the first
largest economy of the world second
largest economy of the world have a
tradable it's going to be a disaster for
two countries and for the world if we
can anybody can do something to stop it
do anything to stop it.
let me start with it which is to say
that you just spent some time inside
Trump Tower in and when to go visit with
Donald yeah our president-elect in the
United States tell us about that meeting
that's very productive meeting
much better than I thought than I
expected what did you expect
well I heard a lot and a watch like
anybody i watch all the news and heard a
lot about him so when I go inside us all
hmm anything that but he's very sort of
open minded listened what I talk so I
think I'm very happy about results and
filed when he he said he offered so Jack
let me walk you down they seem he's very
happy by the results we had can I ask
how does a meeting like that happen do
you call him does she call you well how
does this take place well that's that's
the question I'm asking myself because
some some day I got some requests from
people say Jack do you want a meeting
the president-elect I say is that true
or not cuz I'm not ready for that
because I don't know what to talk about
and then few days later I got another
request I got a several requests and
then I saw one email which were friend
and it's very sort of specific I thought
I thought about it I think yes maybe I
should go and have a talk and at least I
think president-elect on the Trump would
be happy to hear what I want to talk
about so I went and what did you tell
them about the small business talk about
agricultural products talk about the
trade between China and the USA we
especially focused on Todd telling about
how can we bring this small business in
America sell them to China to age it
through our network which can create a
lot of jobs for them and you committed
to create what you say is we're going to
be 1 million jobs in the United States
yeah over in that five years yeah now
that's not a million jobs that I will
evolve it's
but you're not hiring a million people
no we are all totally Alibaba employed
put together it's like a forty five
thousand people we cannot hire one
Miller I cannot imagine I can manage 1
million people now explain to us how you
think about the us-china relationship
given some of the comments that Donald
Trump has made about China being a
manipulative manipulated that did that
come up there in your meeting well I
think first the in America there's a
freedom of speech right so he can see
whatever he want and I respect I
understand but of course I have my views
we did not debate about the china-us a
trade or manipulation with in a debate
with another we actually agreed on
something small business developed in
the Midwest America helping the farmers
their small business there to exporting
to China so we all agree but something
that we do not discuss about the you
know the American did job losing the
China and Mexico and this can I share
with you my ideas please yeah first I
think 30 years ago when i justá--
graduate from the universities I heard
America and a wonderful strategy they
also the manufactured job service jobs
they also manufactured to Mexico and
China also the service jobs to Indian
there's a book called the world is flat
Tom Friedman yeah a league at the near
time and I think it's a perfect strategy
know that the American said we just want
to conclude the IP we just want to
technology we just want a brand to leave
that the law and a job for the world
grace strategy and second is that the
American international companies made
millions millions of dollars from
globalization the top 10 top 100
companies in America amazing I remember
when I graduate from university I try to
buy a paper the Motorola paper cost me
$250 my pay at that
times ten dollars a month as a teacher
and the cost of making that beeper is
only eight dollars for a chip so past a
thirty years
IBM Cisco Microsoft they made a ton of
woman the money the profited made a much
more than the four largest banks in
China put together the moat china mobile
phone china unicom in or whatever you
name it put together still these
multinational companies made more money
death
so the a market cap grew more than 100
times in past 30 years
but where'd the money go this is what I
would care as a business people I always
care about the balance of shit where the
money coming when money go past of 30
years the American had 13 wars spanning
fourteen point two trillion dollars the
money going there what if there's been a
part of them money on building of the
infrastructure helping the white cause
did the white colors and blue colors no
matter how strategy good it is you're
supposed to spend money on your own
people right only not everybody can pass
Harvard like me we got gotta main our
Chris education right we should spend
money on those people who are not a good
at schooling and the other money which I
curious about is that when I was young I
heard America's bat fold fold and Boeing
those big manufactured companies last 10
20 years I heard about his Silicon
Valley and Wall Street the money go to
the Wall Street and what happened year
2008 the financial crisis wipe it out
nineteen point two trillion dollars usal
off then wipe it all of the white colors
and destroyed 34 million jobs globally
so what if the money is not a Wall
Street what if the money spent on the
Middle East middle wealth of the United
States developing the industry there
that could be changed a lot so it's not
the other countries still jobs from you
guys
it is your strategy okay but you do not
distribute the money get the money and
things in a proper way this is what I
and now we were having a backlash and
that backlash is a rebuke of
globalization and so much of the
conversation frankly that we have here
and that backlash is happening in the
United States but I will say President
Xi was here yesterday you had lunch with
him and he was quoting Abraham Lincoln
what did you make of that well I would
say that globalization is a great stuff
it's it's the US developer countries to
teach us how to do globalization I
remember 2002 or one would people trying
to join the WTO everybody in China
wasn't worried with me I was worried
because what if all the international
products come to China destroy our
industry and we have to lose a job so
convince the China after 20 years then
you guys are telling say this is a
terrible thing
I believe globalization is good but
globalization need to be improved
this is Donald Trump presently liked
want to solve it the problems that
globalization I think should be
inclusive globalization in the past of
30 years the globalization was
controlled by 60,000 big companies a
hundred years ago globalization was
controlled by several kings and emperors
what is next to 30 years we can support
six million business doing business
across the board what if in next 30
years we can help support 20 minute
small business can do business across
the board so this is something which I
believe globalization should be
inclusive and do you think that the
words of President Xi will happen in
reality which is to say now that China
has largely acted on its own behalf for
many many years and now is effectively
saying that the US needs to continue
acting on everybody else's behalf
yeah I think you know the world does
need some Assad being such a mr. Xie
yesterday said it's a wonderful time
it's a best time or the worst time the
world need a new leadership but the new
leadership is about working together
this is what I understand we do not
necessarily need one specific leader to
teach us what to do what not to do but
the world had to partner together this
is what I think and I think I like as a
Chinese as a business people I like I
feel proud for what President Xi said
yesterday as a business person I want
the world to share the prosperity
together to join the force together as a
Chinese I'm happy about what he
committed yesterday he said you know he
speaks like us takes the responsibility
of the second largest economy as the
China's second largest economy he has to
take some responsibility this is the
first time I heard a Chinese leader make
number commitment he said next 10 years
we are going to import 8 a US dollars
this if you live you make me feel
excited because China is transforming
from exporting to importing if there's a
concrete number if we can fulfill it
this going to be a huge change to China
and to the world which i think is it's
easier today for China to be interested
in globalization because of the benefits
that accrue that can accrue to China
because you're continuing to develop
then it is for countries that are quote
unquote developed well first the WTO
rule is not designed by China it's not
night by China I will say there's
something that I want to change the WTO
is designed a lot longer rules designed
for big companies and pastors and only
big companies can do it and China
definitely benefit a lot from opening I
think China shall learn one thing that
we grow in the past of the years it's
because we open to the world
we'll continue to open our way not fully
American business that wants to affect
we go into business and China has a very
difficult time has to partner
effectively with a company that's there
already this is why I said China has the
problems too the world has problem and
China has definitely a lot of problems
China should open we should have been
more confidence this is what I feel
yesterday a fear the confidence of mr.
XI that he is ready to open more to the
child to the world this is what I
suggest that we should solve the problem
by business community by negotiation WTO
China joined WTO for suit for 20 years
or 70 years I have done the number but
the past years that I think we as a
business we as a country with the world
we have to review something right but
not because imbalance the things we
stopped it you've been calling for
something called ewt P yeah what is that
this is what I would talk about is that
the WTO was great but they mainly
designed for developer countries big
companies there's no opportunity for
small business we want to build up a W
electronic world trade platform to
support young people small business
thanks through mobile phones internet
they can sell buy across the board and
the other thing is that the other two is
is a very interesting organization when
you put the Doha round we put 200
government offices in a word room asked
them to agree on something it's
impossible I can never imagine that they
can agree on something together business
should be designed about business people
so we believe II W TP should be
something that the business people sit
down together agree on something
negotiate or something and get
endorsement from the government or talk
a little bit about Alibaba and the model
itself because I think for many in the
West if you will they don't necessarily
understand it and to the extent and I to
Natalie that the extent that I could try
to compare it to
Amazon which I know you think is an
unfair comparison one of the things
that's so fascinating to me is that
Amazon and Jeff Bezos have pursued what
might be described as a very asset heavy
business model they're buying airplanes
they want only entire supply chain from
beginning to end
and Alibaba has effectively an asset
like business it is very much in terms
of the retail piece of this the opposite
you don't want to own the warehouses you
don't want to own the logistics
companies how do you think about that is
Jeff Bezos right or you right and is
there is there going to be a meeting in
the middle I hope those are right and
because the world can never have a one
bottle if the world has only one correct
a model there was too boring right we
need to have all kinds of models and the
people who do the bottle should believe
in the models and I believe what I do
right the difference between Amazon and
us anything is more like an empire
everything they should control
themselves buy and sell and our
philosophy is that we want a bigger
ecosystem our philosophy is to empower
others to sell empower others to sit to
service empower make sure the other
people are more powerful than us making
sure with our technology our innovation
our partners our 10 very small business
sellers they can compete with Microsoft
IBM our philosophy is that we we think
using Internet technology we can make
every company become Amazon remember one
thing today for ourselves our GME last a
year is more than 550 billion US dollars
to high people deliver for us we need a
five million people so how can we
high-five minute people deliver things
for us to deliver the things we thought
the only way we do is empower the
service company not just companies
making sure they are efficient making
sure that they make the money and making
sure that they can hire more people
without only in the whole chain can you
do it as effectively the idea that
you're having watching Amazon
being able to deliver things now within
hours literally we made a hundred twenty
five cities deliver within one day last
year in London ten years ago deliver one
thing from Beijing to hounds or ticks by
the eighty days
now you can deliver things from the Han
from Beijing to minimum glory or some
city within 12 hours it's improving you
can never expect these things happening
within 24 hours we have patience so I
think can you imagine that we doing the
1111 singles day we sold 17 billion
trillion billion dollars and by
delivering more than 600 million
packages within three days this is
happening and this is what we feel proud
of it's not how much money we make is
not how powerful we are we think because
of the technology we can make the
technology very inclusive that every
small companies can use it this is my
dream because I said my first business
1992 in China as a small business in
order to borrow money
five thousand US dollars from bank took
me three months to acquire to fail so
difficult to be a small business today
with the technology we can empower them
this is something I want to do one of
the critiques as you know and it
continues to linger around Alibaba is
the piracy issue this is an AI there's
an IP issue and it's an issue all over
China but if you take the brunt of a lot
of it now how much progress have you
made in your mind and how do you think
about some of the regulatory bodies in
other countries including the US that
continue to criticize Alibaba for these
issues first when we start do this
business at the business like this size
you have to take all the criticism you
have to listen what is right what is
wrong and the second is ecommerce when
you put 10 minutes small business
empower them to sell we do not like MS
and buy we cannot even you buy we buy
55 trillion dollars of 55 550 billion
dollars you cannot check every products
so the model itself and the e-commerce
or the self may have a lot of this
clause and third I would say in the past
17 years we are the leader of this empty
privacy this is the IP protect IP but
the second that we are Internet
companies we do not have the law
enforcement we find this guy is selling
product cheaper you know fake products
we delete them we cannot arrest them but
we have huge progress last year alone we
put 400 people into jails we delete a
370 million fake product listing on our
site I want to say we are the leaders
and we are using the big data to check
who's buying who's manufacturing who's
selling what is that dress so now I'm
happy about the whole world especially
China all the government organization
start to realize the issues so I would
tell you a good thing is that today when
you go to those criminal group which I
call them criminals those fake products
manufacturers sellers you praise the
quality though of some of these I will
talk about it later
right those criminals that they can go
anywhere but not not help on team or
because using our data we trace where
they are who they are what's address
what they mount I will deliver this to
the PlayStation and working with that to
arrest the quality issues is something I
want to share with people it's not by
praising the fake products I want to say
that for so many years those branded
companies you have to be very careful
because the fake products their quality
improving is scary
that is the difference between us
because when you finally guys the thing
that people said this is fake and you
have to find people you have found a
third party institution to check it as a
fake or not we find sometimes the
quality is better and I tell you another
thing is that even scary
a lot of there's a one brand company he
said we are selling fake products we
check everything it's nothing wrong so
hmm
what is Ross would buy the product from
his flagship and delivered to that this
is a fake you know thing we buy shop buy
things from the Flex shop of this brand
and deliver back it's the fake products
they say it's a bit confusing
this is fighting against the fake
products is the war against the greeting
human greediness it's not easy you
cannot have finish it but you have to
continue to fight and I want to say we
put two thousand people 1 billion I'd be
every year fighting again bet it can
never finish the role within two years
but I'm happy
whether people criticize me criticize us
the most important is that we are happy
about the progress we made but if people
praise me so you know when people say
Jack you're wonderful I know I'm not
wonderful right all about the great we
are not great we're just a seventeen
year old company but when people say
you're doing nothing no we're doing a
lot of things be that the argue you guys
the debate you do what you believe one
of the things you mentioned was using
big data on the piracy side but the
other thing that you're using a lot of
that big data to do is provide credit
and effectively banking the unbanked and
what's so fascinating to me and I hope
you'll share it is we've talked about
the sesame credit you know how how you
are able to use big data effectively to
figure out who deserves credit and who
doesn't in a marketplace where some of
these people had no credit history
before okay well before we do that we
had a system co-teach computers
learn how to empty fake products teach
the computers to learn how to because we
have a leap a lot of people try to use
all the ways to cheating so we teach the
computer how to do that the cheating
things so we've been doing that for ten
years until now there is called
artificial intelligence because we've
been doing that we are a data company
eight years ago we said to ourselves
Alibaba should not be an e-commerce
company we should be a data company
because we have the data from consumers
we have data from the the manufacturer
updaters from the logistic companies and
transactions but we think how we can
make a data really beneficiary to the
society what China need is that we have
a lot of great people all the small
business they are very they're very
credible but the other we don't have a
credit system for that so how can we
using a credit rating system based on
the data so we have put it giving
everybody a sesame a rating system that
is so powerful in the past four years
because every individual every small
business if they have been using our
services we give no rating system so
we're giving loans in the past five
years with giving five million business
loans the only about borrow $5,000 three
minutes we can decide whether we should
give you money how much you want to get
with ins it one second the money will
being account and zero people touch so
we called three one zero either today
the sesame rating system become people
baking the mother-in-law want to say hey
you want to date you which my daughter
show me a rating system of the fascinate
card so it's so funny we go to the
people want to rent a car people want to
rent a bicycle they will say show me
your sesame carts good because if they
do not have pay back if they do not
fulfill the radius is going to blow down
and they can never rent a house right
this is what we want to build up the
system that if you sell or buy fake
products
assessing the cars we're sure I'm going
to open up to questions but a final one
for me there's been a lot of speculation
that you're going to get into the
business of Hollywood your name has
appeared a highway Baba group at the
beginning of a couple of big films
recently
what is the ambition for Alibaba in the
entertainment world
um the beginning were like this several
years we every five years we have a
review for our strategy now our strategy
is always look at the thirty years and
ten years every strategic decisions we
make we have to ask one question the
disposition we make solve society
problem because we believe the biggest
social property assault the most
successful you are so if we do it this
cannot solve any social problems we
don't do it second is this project is
going to be successful in ten years if
it's going to be successful in ten years
let's do it if it's going to be
successful in one year or one month not
what I say forget about it because why
you can be successful in one year or one
mouth so we all have to put term and
five years ago we had a big debate about
ten years later 20 years what are the
things this China society the world
leave want so we say happiness and
health to H strategy so happiness and
health we believe hollow you know the
movie industry bring people happy
because today nobody is happy
rich people are happy poor people not
happy and you know at least when I watch
movie out you're happy but right so I
think we should partner with the
Hollywood especially like a lot of you
know we have a different way of living
and in China the movie we have a lot of
heroes but China movies heroes always
dead the American Dream over here will
never dies
if all the heroes die who want to be the
hero so my movie I want to make the hero
live right so this is this is I think we
should learn a lot and it's only about
two years so we have another eight years
ago I want to make our company that it's
not ecommerce it's something that giving
people inspirations given people because
I learned a lot for example I will say
that my favorite movie forest the gum
you know life stuff
this is I learned and that inspired me
that is why when people call me crazy
skipping past the 70 years you're
crazier doing something that will work
your stupid how can do that model admins
in this model evening this model why
elbaba this model I told myself force
the gum set go ahead I would care about
what the other people and the other
thing first gun said nobody make money
out of the caption whales people make
money by catching shrinks so we serve
small business fair enough
you
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