Chinese e-commerce giant Alibaba is Doubling down on the US it's Global Business to business arm is rolling out A slew of products at its second annual Co-create event in Las Vegas among the Announcements a tie-up with MasterCard To launch a new credit card for Businesses and a new sourcing agent Driven by gener of AI Aiko fueta spoke To the president of alibaba.com kuo Zen About why he thinks generative AI will Accelerate global trade on the Platform we think that is is a perfect Scenario since the first the process is Complexed and the people are using Different languages in different time Zones with different cultures as a Background we first launch our AI tools For the sellers last October and now we Have more than 20,000 of customers Sellers side from China and 10,000 Customers outside China who using this AI tools and today we are announcing the Tools for the for the buyer part so we Are providing tool which is not a kind Of traditional uh passive search engine It's a kind of a conversational search Engine it will get you through you can Start from a scratch to describe about Your ideas or you can through a bunch of A list of questions or even a quotation Documentation to the engine and the Engine will get you through step by step This partnership that you are um you
Have with MasterCard you're launching a Credit card um looking at the terms of That um certainly you can see the Multiple use cases here obviously Increasing access to capital for those Small medium PR mediumsized Enterprises That you serve um also though pushing to The alibaba.com platform as well I mean What opportunity do you see particularly In the US market beyond what you already Have how significant is that growth Opportunity we want to Launch new uh Financing services for example give you A more kind of payment terms like 30 Days to 90 days so you can manage your Cash flow better the second part is can Give you 3% of a cash back if you paay Online and after that we are providing After salale Services the let's say if The product you receive have a defect or Not as dist stra that you make before Then you can return the product to 4,000 700 different locations for free so so The ease of transaction as you laid it Out but clearly There's an opportunity That you see here given the launch That's happening today um how big is That market for the US uh is the US for Alibaba right now how much more growth Do you see potentially So currently Us Is around 30 to 40% uh in total from the Gmv of the transaction perspective and That's only cover part of the business In daily basis you think about the
Global trade is a 20 trillion Us doll Business so now the penetration of the Digital penetration is a single digit so We believe there's a lot there's a lot Potential to gross if we lower the Barrier andless more smbs come to this Network alibaba.com of course um just a Part of the larger Alibaba company um You know looking at your most recent Earnings um certainly a Slowdown in the Economy back home in China um creating Headwinds particularly on the consumer Facing side of the business the International arm though a bright spot For the company I'm looking at International digital Commerce that was Up more than 30% year onye to what Extent does the Slowdown you're seeing In China increase the importance of the International arm particularly B2B for Alibaba as a whole we have uh three Major uh strategies I think not only for This year but also for the next three Years the first thing that we already Mentioned is about technology like the AI so AI can lower the barrier for more Buyers and suppliers to come in to do Business with each other and this is our Mission to set up this business to make It easy to do business anywhere so we Talk about that before the second part Is about to build the digital supply Chain to make sure the buyers and Sellers can trust each other can pay
Easily to pay and deliver the product The third part is uh we are helping the Uh buyers to coping with supply chain Disruptions especially we are Introducing more and more Global Supplies into this network so the Supplies including from the Europe sast Asia North America and Mexico Latin America as well so these we can Pro Vising uh with the effort of this the Buyers are easily to select their Partners not only from China but from All over the world these three strategy Actually is driving our growth yeah Let's talk about um what's playing out In the Chinese economy certainly a lot Of our viewers very interested and and You've got a good pulse on this given That smmes are a are real driver in the Chinese economy about 60% of GDP um you Have conversations with these small and Medium-sized businesses how would you Assess the health of those businesses we Speak with many of the uh manufacturers With the suppliers in China I think for This year one thing is that more and More kind of suppliers would like to Participate in the global trade take EU And guangong guo as example so suppliers There actually the new uh suppliers come To uh the marketplace actually is 30 for 40% of grow comparing for the last year So which means that more and more Suppliers would like to join this global
Trade that push to export more though I Mean how much of that is a symptom of What's happening in the domestic market And wanting to to seek out opportunities In more high growth areas I think supp So previously it's very hard for them to Understand what's the real demand and How to kind of ship in time and how to Collect money and now with the help of Digital I think it's more and more Easier for them to to kind of lower the Barrier and participate in the global Trade you talk about global crossb trade Uh certainly fraught with risks Increasingly on the political side of Things um you know globally here in the US um you've got the potential for the Return of former president Trump who has Already talked about um uh the Possibility of 60% tariffs um on all Chinese Imports starting at 60% we Should say I mean you're increasing your Supplier base but you've still got what Roughly 90% in China I mean h how big of An impact would this be for alibaba.com And how are you preparing for the Possibility so first of all if we talk About the global trade actually the Fundamental rule is demand and supplies So think from the US buyers perspective Is SMB want to buy some stuff so there Are a lot of things they need to Consider like what product I I produce What do the market what do the cost and
What the kind of inflation rate and Etc And the Tariff is only one part of that And you could argue that it's not just The us anymore I mean Europe has also Launched some investigations of their Own potential additional tariffs coming On that front as well we see different Areas actually have different type of Demand like in developing countries in Developed countries actually they are Buying different stuff and what we what We can do here actually is H the first We can lower the barrier so more people Can participate and the second is that We can make the supplies more Diversified from all over the world and We have plan to kind of uh invent more Than 100, kind of suppliers all over the World to participate in this uh in this Network so more and more smmes can get Beneficial from this globalization so That is uh our view and our Effort that was the president of Alibaba.com quo Jang
