+ 0.00
+ 0%
+ -0.01
+ 0%
+ 0.00
+ 0%
+ 0.00
+ 0%
+ 0.00
+ 0%

Can Alibaba's Jack Ma Bring 'America To China'?

November 8, 2014 2:44 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Can Alibaba's Jack Ma Bring 'America To China'?

Jack Ma, Alibaba Group Holding Ltd's (NYSE: BABA) founder and chairman, is the richest person in all of China.

Ma’s company, which reported 54 percent sales growth in its first earnings report since going public and is now officially worth more than Wal-Mart Stores, Inc. (NYSE: WMT), has become a force to be reckoned with.

Related Link: Alibaba Earnings Roundup; Several Firms Raise Price Targets

Taking America To China

When Ma told The Wall Street Journal he was interested in bringing America to China because, “… selling Chinese products around the world—that’s the past 10, 15 years,” people listened.

Noting that 110 million to 120 million people shop on Alibaba every day, Ma said, “Because when you have such a huge demand of good products from outside, the next 10 years, I believe, China should import.”

Ma’s Priority

Ma has clearly made the importing of American (and other foreign) goods into China a priority for his company.

As he noted in Alibaba’s September filing, "Our proposition is simple: We want to help small businesses grow by solving their problems through Internet technology."

While that works as a two-way street with regard to Chinese products coming to America, it also would make it easier for American entrepreneurs to export their goods to China.


When it comes to the types of products most viable in the Chinese market, Ma pointed first to farm products. He cited pollution in China as a major problem restricting the country’s ability to grow quality food.

Ma noted that last year, for example, Alibaba sold 150 tons of Washington state cherries, 80 tons of nuts and a large amount of seafood from Alaska to consumers in China.

Agricultural Exports To China

As Jack Ma clearly knows, China already buys a lot of U.S. agricultural exports. Now he wants in on the action.

According to the United States Department of Agriculture, China became the top destination for U.S. agricultural exports, ahead of Canada, in 2010.

The USDA reported that U.S. farm exports to China nearly doubled from $13.1 billion in 2009 to $25.9 billion in 2013.

Related Link: 2 Great Ways To Invest In Commodities

Strong U.S. Dollar

One potentially important factor, according to Seery Futures president, Mike Seery, would be the continuing strength of the U.S. dollar, which currently stands at a four-year high.

Seery told Benzinga, “The U.S dollar is bigger and stronger than Jack Ma and will continue to push prices lower.”

At the time of this writing, Jim Probasco had no position in any mentioned securities.

Related Articles

Benzinga's Final Bulls And Bears Of The Year: Alibaba, Apple, Intel, Tesla And More

Benzinga has examined the prospects for many investor favorite stocks over the past week. The week's bullish calls included the iPhone maker and electric vehicle stocks. A semiconductor maker and a Chinese internet giant were among the bearish calls. read more

Wall Street Remains Bullish On China

The November rally in U.S. equities may be garnering most of the attention (especially as we get closer to having a COVID-19 vaccine) but don’t sleep on China. Among Direxion’s stable of leveraged ETFs, two of the five top-performing funds year to date provide magnified exposure to China. Here’s a breakdown of what has driven each fund higher. read more

Benzinga's Bulls And Bears Of The Week: GM, Intel, Walmart And More

Benzinga has examined the prospects for many investor favorite stocks over the past week. This past week's bullish calls included automaker and retail giants. Fast food and semiconductor stocks were among the bearish calls. read more

KraneShares Jumps Into ESG ETF Fray With New China Fund

Putting its deep expertise in China and emerging markets to virtuous use, KraneShares launched the KraneShares MSCI China ESG Leaders ETF (NYSE: KESG) on Wednesday. read more