Asian firms eye expansion beyond US
Market diversification: People stroll through Shanghai's bustling shopping district. Alibaba's eCommerce operations have been affected by Trump's decision to close a tariff loophole for small parcels from mainland China and Hong Kong. — Reuters
BEIJING: Alibaba Group Holding Ltd chairman Joe Tsai says Asian companies can look to inter-Asia opportunities and the European market for growth as tensions between Washington and Beijing persist.
During a tech conference in Macau last Saturday, Tsai also called out 'some governments' who 'try to tear down this bridge that we have built between Asia and the rest of the world'.
While he didn't specify which administrations he was referring to, the comments come against the backdrop of President Donald Trump's trade war that has roiled markets and sparked retaliatory levies from other governments, as well as increased global scrutiny on Chinese corporates.
'There's actually a lot of inter-Asia business activity, engagement that can happen among the East Asian countries between East Asia, and South-East Asia and eventually South Asia as well,' Tsai told the audience at Beyond Expo.
He added that Europe is 'an incredible opportunity' for Asian companies.
'I believe that Europeans have a very different cultural mindset when it comes to dealing in Asia,' Tsai said.
'I think, you know, Americans tend to be sort of more black and white, whether it's not good, then it's bad.
I think Europeans understand nuances better.'
Alibaba's core businesses have fallen victim to the prolonged US-China tensions.
The company's shares slumped this week after the New York Times reported that the Trump administration raised concerns over Apple Inc's potential artificial intelligence (AI) deal with the Chinese eCommerce leader, an important win for the Hangzhou-based company.
While Apple has not spoken publicly about such a partnership, Tsai confirmed the tie-up earlier this year, though he didn't specify if Alibaba would be the exclusive AI provider for the US company in China.
A local partner could help revive iPhone sales in China, which have suffered as rivals such as Huawei Technologies Co move ahead with AI-enabled smartphones.
Apple has yet to provide its full suite of AI features in China because of regulations that require it to partner with a locally accredited company.
Alibaba's eCommerce operations have also been affected by Trump's decision to close a tariff loophole for small parcels from mainland China and Hong Kong.
Alibaba's disappointing results last week sent the company's shares plunging the most in more than a month.
Investors are growing wary that the eCommerce leader can overcome a persistent Chinese economic malaise and benefit from its status as one of the frontrunners in the DeepSeek-inspired AI boom.
But Tsai last Saturday defended Alibaba's prospects, saying the company is on 'a very good path' and reiterated the company's focus on eCommerce and AI.
The company's comeback following years of government scrutiny is being orchestrated by Tsai and chief executive officer Eddie Wu – two of co-founder Jack Ma's most trusted lieutenants.
After taking the helm in 2023 they've refocused spending on building AI and eCommerce, while accelerating the unloading of non-core assets to bankroll the AI investments and international expansion.
Alibaba has been releasing AI products at a frenetic pace since DeepSeek's emergence on the global stage this year.
It's risen to the forefront of China's AI industry thanks to a series of rapid-fire model enhancements and rollouts, including last month's release of its Qwen3 flagship model, which it said rivals DeepSeek's performance on several fronts. — Bloomberg
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
33 minutes ago
- The Star
Namibia to strengthen partnership with China at economic and trade expo
WINDHOEK, June 5 (Xinhua) -- Namibia will use its participation in the upcoming China-Africa Economic and Trade Expo (CAETE) in China's Hunan Province to deepen strategic partnerships and unlock new development opportunities, the Ministry of International Relations and Trade said Thursday. "Our active participation underscores our commitment to building strategic partnerships with all our development and trading partners, that will unlock opportunities for our citizens and position Namibia as a key player in regional and continental development," the ministry said in a statement. According to the statement, Namibia will take part as one of the guest countries of honor in the 4th CAETE in Changsha, Hunan Province, from June 12 to 15. Flagging CAETE as "a premier platform for economic collaboration between China and Africa," the ministry said "the expo offers Namibian entrepreneurs and investors the opportunity to connect with Chinese business leaders, showcase Namibia's investment opportunities in sectors such as mining, tourism, agriculture and agribusiness, manufacturing renewable energy, and fisheries, as well as exploring new avenues for economic cooperation and private sector collaboration." It also said that Minister of International Relations and Trade Selma Ashipala-Musavyi will lead the country's delegation to the events. "Namibia recognizes the importance of multilateral cooperation platforms like FOCAC and CAETE in fostering sustainable development and sustained economic growth," the ministry said. The events in Changsha are also expected to enhance Namibia's engagement with Chinese investors, support economic diversification, and contribute to the country's long-term development goals.
The Star
33 minutes ago
- The Star
U.S. short on essentials for factory revival: report
NEW YORK, June 5 (Xinhua) -- The United States lacks nearly every part of the manufacturing ecosystem -- the workers, the training, the technology and the government support -- and in many industries, the undertaking to revive its factories would take years, if not decades, reported The New York Times on Thursday. For example, "American factories are already struggling to fill around 500,000 manufacturing jobs, according to estimates by Wells Fargo economists. They calculate that to get manufacturing as a share of employment back to the 1970s peak that Mr. Trump has sometimes called for, new factories would have to open and hire 22 million people. There are currently 7.2 million unemployed people," noted the report. Another example is the garment industry: there are no mills in the United States on the scale of what it needs, nor major zipper and button suppliers. Some 97 percent of the clothes and shoes that Americans buy are imported for cost reasons. U.S. President Donald Trump "ignited a global trade war on a gamble that taxing other countries' goods would bring jobs and factories 'roaring back' to the United States," said the report, adding that "Trump has exposed the difficulties in closing the vast distances, geographical and logistical, between where many products are made and where they are consumed."
The Star
2 hours ago
- The Star
Circle shares set to surge in NYSE debut, lifting hopes for IPO market recovery
Jeremy Allaire, CEO and co-founder of Circle Internet Group, the issuer of one of the world's biggest stablecoins, and Circle Internet Group co-founder Sean Neville react as they ring the opening bell, on the day of the company's IPO, in New York City, U.S., June 5, 2025. REUTERS/Brendan McDermid (Reuters) -Circle Internet's shares were set for a strong debut on the New York Stock Exchange on Thursday, a move expected to boost an IPO market that has struggled to regain momentum. The stock was last indicated to trade between $60 and $61 at debut compared with its IPO price of $31. The successful flotation is likely to encourage other crypto IPO hopefuls eyeing public markets. Surging interest in digital assets amid rising token prices and supportive regulatory developments are expected to spur more listings from the industry. The outlook for the digital asset industry has also brightened with the Trump administration adopting a lighter regulatory touch and moving to establish a crypto-friendly environment. In recent months, a growing number of companies have also added cryptocurrencies to their balance sheets to capitalize on rising token prices. Circle's flotation is the biggest crypto listing since Coinbase's 2021 debut and the first major IPO by a stablecoin issuer. It had earlier attempted to go public through $9 billion blank-check deal, but the deal fell apart in 2022. MAINSTREAM ADOPTION Circle's IPO is also a landmark moment for the stablecoin market, which has been a hot topic since the Trump administration took office. The passage of the pending stablecoin bill could further accelerate the adoption of the digital tokens and make it more mainstream. Apart from being used to trade cryptocurrencies, stablecoins are increasingly being used as a form of digital payment. Wall Street expects stablecoins to become one of the biggest themes within finance in the coming years and the next multi-trillion dollar market opportunity. Founded in 2013 by Jeremy Allaire and Sean Neville, Circle issues the dollar-denominated USDC, the world's second-largest stablecoin by market cap after Tether. Besides USDC, Circle also issues the euro-denominated stablecoin EURC. Allaire, 53, has led Circle since its inception. He previously served as the co-founder and CEO of streaming technology company Brightcove. (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Anil D'Silva, Shilpi Majumdar and Shounak Dasgupta)
