Alibaba chair says Asian firms can seek growth outside US

Business Times

26-05-2025

[BEIJING] Alibaba Group Holding chairman Joe Tsai said 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 on Saturday (May 24), 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 did not specify which administrations he was referring to, the comments come against the backdrop of US 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 Asian 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 if 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 e-commerce leader, an important win for the Hangzhou-based company.
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While Apple has not spoken publicly about such a partnership, Tsai confirmed the tie-up earlier this year though he did not 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 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 e-commerce 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 e-commerce 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 on Saturday defended Alibaba's prospects, saying the company is on 'a very good path' and reiterated the company's focus on e-commerce 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 have refocused spending on building AI and e-commerce, 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