1 00:00:02,440 --> 00:00:08,719 Speaker 1: Bloomberg Audio Studios, Podcasts, radio News. Quashin, president of the 2 00:00:08,760 --> 00:00:13,640 Speaker 1: business to business marketplace Alabama dot Com, spoke exclusively with 3 00:00:13,760 --> 00:00:19,759 Speaker 1: Bloomberg TVs Annabelle Drulers. They discussed China's economy, tariff impacts 4 00:00:19,880 --> 00:00:23,239 Speaker 1: on the SMEs that use the platform, as well as 5 00:00:23,280 --> 00:00:27,200 Speaker 1: the company's expansion plans and AI usage. 6 00:00:27,600 --> 00:00:31,240 Speaker 2: Let's just talk about the outlook for China's economy in 7 00:00:31,280 --> 00:00:33,320 Speaker 2: particular and what you're seeing, because I think what we 8 00:00:33,320 --> 00:00:36,440 Speaker 2: were discussing is that there's been quite a divergence or 9 00:00:36,440 --> 00:00:38,920 Speaker 2: a little bit of a divergence that's coming out now 10 00:00:38,960 --> 00:00:41,800 Speaker 2: between what we're seeing in the private readings and the 11 00:00:41,800 --> 00:00:45,920 Speaker 2: official readings for PMI in terms of the private survey 12 00:00:45,960 --> 00:00:49,120 Speaker 2: is looking a little bit more optimistic from the latest numbers, 13 00:00:49,120 --> 00:00:51,600 Speaker 2: and that's the one that really tracks the smaller businesses 14 00:00:51,600 --> 00:00:54,280 Speaker 2: and attracts the exporters in particular, and that's really what 15 00:00:54,920 --> 00:00:57,600 Speaker 2: you're seeing as well, as president of Alibaba dot Com. 16 00:00:57,640 --> 00:01:00,200 Speaker 2: So based on the businesses that you're dealing with with, 17 00:01:00,240 --> 00:01:03,320 Speaker 2: what would you say is the overall health and outlook 18 00:01:03,760 --> 00:01:04,720 Speaker 2: at this point in time. 19 00:01:05,120 --> 00:01:08,880 Speaker 3: So Alibaba dot Com, actually we serve around two hundred 20 00:01:08,920 --> 00:01:14,200 Speaker 3: thousand Smese suppliers in China and also globally. And what 21 00:01:14,280 --> 00:01:16,600 Speaker 3: do we see this year nervous last year? I think 22 00:01:16,680 --> 00:01:19,679 Speaker 3: several things. The first one is more and more Smese. 23 00:01:19,760 --> 00:01:23,680 Speaker 3: It's willing to participate in the global trade, so they 24 00:01:23,720 --> 00:01:27,319 Speaker 3: are more willing to sell globally. So one example is 25 00:01:27,360 --> 00:01:30,760 Speaker 3: that so there's a small city in EU, you know, 26 00:01:30,959 --> 00:01:35,000 Speaker 3: all commodities actually setting and distributing in you. And for 27 00:01:35,080 --> 00:01:39,280 Speaker 3: the first to the first quarter of this fiscal year, 28 00:01:39,760 --> 00:01:44,640 Speaker 3: so customers in you who join Alibaba dot Com actually 29 00:01:44,680 --> 00:01:47,000 Speaker 3: grow seventy percent comparis last year. 30 00:01:47,280 --> 00:01:52,160 Speaker 2: Where are you really aiming to expand than Alibaba dot Com? 31 00:01:52,200 --> 00:01:53,600 Speaker 2: Which markets are you going after? 32 00:01:56,320 --> 00:01:59,320 Speaker 3: So let's say from the buyer side and the supplier side, 33 00:01:59,400 --> 00:02:03,840 Speaker 3: So from from supplies side, actually we expand the supplies. 34 00:02:04,240 --> 00:02:06,400 Speaker 3: So now it's not only in China, but it also 35 00:02:06,680 --> 00:02:10,639 Speaker 3: expand globally as well, like in Southeast Asia, in career, 36 00:02:11,120 --> 00:02:15,560 Speaker 3: in Europe, in Mexico and the North America and LUSI. 37 00:02:15,680 --> 00:02:19,200 Speaker 3: Actually we do acquisition in Europe Colle visible, which is 38 00:02:19,240 --> 00:02:22,480 Speaker 3: the biggest kind of marketplace in Europe VOV for the 39 00:02:22,560 --> 00:02:25,920 Speaker 3: Dutch language area and Europeages for the rest of Europe. 40 00:02:26,160 --> 00:02:29,760 Speaker 3: So now we are supporting them from the technology perspective 41 00:02:29,800 --> 00:02:33,079 Speaker 3: to enable them to boost from the yellow pages to 42 00:02:33,160 --> 00:02:37,600 Speaker 3: transactions to the kind of like like the guarantee services 43 00:02:37,639 --> 00:02:41,840 Speaker 3: that we're provided to help the intro business kind of trade, 44 00:02:42,040 --> 00:02:44,679 Speaker 3: and Aliba dot Com can help the global asms do 45 00:02:44,919 --> 00:02:47,600 Speaker 3: the cross border trade. So this this is what I'm 46 00:02:47,639 --> 00:02:50,639 Speaker 3: going to expand and for the buyers that actually it 47 00:02:50,720 --> 00:02:54,560 Speaker 3: is the global buyers. The buyers which is booming now 48 00:02:54,680 --> 00:02:57,240 Speaker 3: is in US and Europe and also in Latin America, 49 00:02:57,320 --> 00:03:01,720 Speaker 3: and soisition is kind of for deraping countries and different 50 00:03:01,760 --> 00:03:07,720 Speaker 3: countries actually help the different type of demands for different categories. 51 00:03:09,040 --> 00:03:11,520 Speaker 2: The value proposition I think from a buyer is pretty clear. 52 00:03:11,600 --> 00:03:14,600 Speaker 2: You can say, but perhaps a product for a cheaper price. 53 00:03:15,160 --> 00:03:17,040 Speaker 2: What do you think then that there are concerns around 54 00:03:17,040 --> 00:03:20,359 Speaker 2: over capacity, for instance, from a lot of different European countries, 55 00:03:20,400 --> 00:03:22,959 Speaker 2: how do you respond to those concerns Because that sort 56 00:03:22,960 --> 00:03:26,400 Speaker 2: of does speak quite closely to the Alibaba dot Com 57 00:03:26,400 --> 00:03:30,640 Speaker 2: model of being able to connect more supplies to new 58 00:03:30,760 --> 00:03:34,200 Speaker 2: markets and offer good products for lower prices. 59 00:03:35,000 --> 00:03:38,200 Speaker 3: So in one way that we are kind of enriched 60 00:03:38,240 --> 00:03:44,880 Speaker 3: our selections. There's multiple supplies, like supplies in Europe. So 61 00:03:44,960 --> 00:03:48,760 Speaker 3: we see there's a great supplies for fashion in France, 62 00:03:49,320 --> 00:03:52,560 Speaker 3: like wires in Italy and the machineries in Germany and 63 00:03:52,840 --> 00:03:55,800 Speaker 3: Italy as well, so there's a lot of SMEs actually 64 00:03:55,840 --> 00:03:58,600 Speaker 3: doing a great job on Alababa dot com and as well, 65 00:03:58,640 --> 00:04:03,840 Speaker 3: as we mentioned before that we do acquisition investment on Visible, 66 00:04:04,680 --> 00:04:07,720 Speaker 3: we do that not only for it's not only for 67 00:04:07,760 --> 00:04:11,360 Speaker 3: a kind of financial investment. We are going to use 68 00:04:11,440 --> 00:04:14,400 Speaker 3: our technology at the no House to kind of boost 69 00:04:14,600 --> 00:04:18,719 Speaker 3: their technology engine to help the small and medium business 70 00:04:19,360 --> 00:04:23,400 Speaker 3: within the Europe to do the kind of intra Europe collaboration. 71 00:04:23,800 --> 00:04:26,119 Speaker 3: So I think there's a one part. The second part 72 00:04:26,279 --> 00:04:31,279 Speaker 3: is the fundamental rule for global trade is supply and demand. 73 00:04:32,120 --> 00:04:35,840 Speaker 3: So if there is a demand require for kind of 74 00:04:36,040 --> 00:04:40,080 Speaker 3: quality product with a better price, and what we are 75 00:04:40,120 --> 00:04:43,599 Speaker 3: going to provide is to lower the barrier for both sides. 76 00:04:44,240 --> 00:04:47,720 Speaker 3: So the same is them selfs entrepreneurs themselves can survive 77 00:04:47,800 --> 00:04:49,960 Speaker 3: and get enough margin out of that that can make 78 00:04:50,000 --> 00:04:50,479 Speaker 3: a business. 79 00:04:50,880 --> 00:04:53,080 Speaker 2: Earlier this year we did some reporting from the Canton 80 00:04:53,200 --> 00:04:55,240 Speaker 2: Trade Fair and some of the different people that we 81 00:04:55,240 --> 00:04:57,799 Speaker 2: were speaking to this so that even with the risk 82 00:04:57,880 --> 00:05:01,200 Speaker 2: of some very hefty tariffs and that referring to the 83 00:05:01,320 --> 00:05:04,839 Speaker 2: possible Trump tariffs if you were elected president again, but 84 00:05:04,880 --> 00:05:07,479 Speaker 2: they would be able to withstand them given that the 85 00:05:07,560 --> 00:05:11,200 Speaker 2: price is so competitive that's coming from China, and the 86 00:05:11,279 --> 00:05:14,240 Speaker 2: quality as well is also so high that it still 87 00:05:14,279 --> 00:05:19,279 Speaker 2: is a very competitive and compelling way or area or 88 00:05:19,279 --> 00:05:23,360 Speaker 2: country to purchase from. What's your view on how much 89 00:05:23,520 --> 00:05:26,040 Speaker 2: Chinese companies in the SMEs that are on the platform, 90 00:05:26,080 --> 00:05:28,760 Speaker 2: how much can they withstand that risk of extra levees 91 00:05:28,760 --> 00:05:29,960 Speaker 2: being applied to their products? 92 00:05:30,080 --> 00:05:35,479 Speaker 3: Okay, all entrepreneurs, from their eyes, there are many problems 93 00:05:35,480 --> 00:05:38,280 Speaker 3: that they need to serve. So what a product I'm 94 00:05:38,320 --> 00:05:42,400 Speaker 3: going to provide, what type of employees A'm going to hair? 95 00:05:43,080 --> 00:05:47,680 Speaker 3: And what about the kind of how to say the 96 00:05:47,800 --> 00:05:52,720 Speaker 3: economics pax and pariff is only one part. 97 00:05:52,520 --> 00:05:53,159 Speaker 1: Of the tax. 98 00:05:54,040 --> 00:05:57,320 Speaker 3: So when we see the global supply and demand, we're 99 00:05:57,320 --> 00:06:00,880 Speaker 3: starting from the fundamental ones and how to the efficiency 100 00:06:01,240 --> 00:06:03,680 Speaker 3: and how to help them to build up their own 101 00:06:03,720 --> 00:06:06,280 Speaker 3: business based on the global supply chain which is more 102 00:06:06,320 --> 00:06:09,560 Speaker 3: competitive for the Assamese. So that's just what do. 103 00:06:09,440 --> 00:06:10,440 Speaker 2: We do today. 104 00:06:10,760 --> 00:06:14,960 Speaker 1: That's Alabama dot Com president Qua Juang speaking with Bloomberg 105 00:06:15,040 --> 00:06:19,800 Speaker 1: TVs Annabelle Rulers to hear more conversations like this, Subscribe 106 00:06:19,839 --> 00:06:21,760 Speaker 1: to the Bloomberg Talks podcast.