Jack Ma: Change way trade is conducted to avoid tensions

HANGZHOU: The prolonged trade tension between the United States (US) and China will not take place in the future if the way trade is conducted becomes technology-based.

Alibaba Group Founder and Executive Chairman Jack Ma said a technology-based trading method would result in fewer trade barriers and less tensions between trading partners.

“Tension between the two countries is affecting China's economy in many ways, especially in the retail sector.   “When the walls in trade are torn down, trade wars will not exist. But in order for this to happen, everyone must embrace change,” he said at the Alibaba Computing Conference here today.

Ma also said everyone needs to be prepared not only for here and now, but also for 20 years in the future.

“We need to continue to innovate and if we do not work hard, we will be sad in the future,” he said.

Ma said the manufacturing sector must also transform itself and rise to another level in the next 10 to 15 years before it falls behind.  

“The pains that we are going to face are going to be unprecedented and way out of expectation. So, we have to be fully prepared.  “Some people are saying that real manufacturing is disappearing, but I don't think so. Only those companies lagging behind are going to disappear,” he said.  

Yesterday, the US imposed a third round of tariffs worth US$200 billion (US$1 = RM4.14) on Chinese goods.  

The trade tension between the US and China is also affecting other emerging markets, such as Malaysia, that are trading partners with both countries. - Bernama