Ma Yun: trade is not a weapon but a solution
- 2018-04-18 14:23
- Trade, consumption market, import trade deficit, profit surplus.
"Entering the world's largest consumer market is a great opportunity for the United States. When the opportunity comes, is the US government's trade frictions to give up this huge opportunity? In April 11th, Ma Yun, chairman of Alibaba's board of directors, published a signed article in the Wall Street Journal -- "trade war: killing employment, opportunities and hopes". In this article, Ma Yun has always discussed the entrepreneurs' perspective on connecting the Chinese and American enterprises and the market, and put forward a series of key issues that the Trump government must consider, such as export, employment, and how to treat the Chinese and American economies.
Ma Yun, who is constantly flying around the world, is very familiar with the way of communication with the west, and it is more clear about what the US government and Trump are most concerned about. Ma Yun spoke with facts, pointing out that despite the trade deficit between China and the US, the US economy is still improving. In addition, there are 300 million middle classes in China. The income of residents is growing at the speed of close to two figures, and the scale of consumption upgrading is huge, which is driving China to attract imported goods from the whole world. Therefore, entering the world's largest consumer market is a great opportunity for us today. Ma Yun put forward the question that the United States must consider: is the US government making trade frictions at the time of this opportunity? Is the United States giving up this great opportunity in this way?
"The policy of reducing the tax rate by Trump does indeed benefit the US economy, but this time to launch a trade war on China, I can't see the half of the advantage for the US economy." Ma Yun's article begins with the way of transposition thinking, and discusses a basic problem with readers. Is the trade deficit hindering the US's economic development?
Ma Yun argues that China's manufacturing industry is "trade deficit" for the US, but is it not a trade deficit with China? At the same time, because of 30 years of encouraging manufacturing outsourcing and leaving innovative, technological and brand economic policies, American companies have taken most of the profits, and the United States has the world's largest profit surplus in fact. The U.S. unemployment rate in March 2018 was only 4.1%, a new low for 17 years, and today's U.S. economic indicators show at least one fact that the "trade deficit" between China and the United States seems not a bad thing for the US economy.
Small and medium-sized enterprises in the United States, especially in the central and western regions, are the cases in the US, especially the Trump camp. Ma Yun argues that the US government's trade war against China will hurt millions of farmers and small businesses in the US. "I'm feeling the same." Ma Yun said. Last year the Alibaba held "Gateway 17" (the Alibaba US Small and Medium Enterprise Summit) in Detroit, more than 3000 American small and medium business owners and listened to Ma Yun's speech. Ma Yun introduced China's growing market, advanced payment technology and convenient logistics, so that the small and medium business owners in the United States have rediscovered China.
Ma Yun's analysis is very important for Trump. Creating exports and employment is one of Trump's key commitments in the campaign. The trade war will damage the interests of the small and medium-sized enterprises in the United States, or even lose the opportunity to enter the Chinese market. A recent study by the Brookings Institution of the US think-tank showed that if China initiated anti system measures, it would affect 2 million jobs in 2783 counties in the United States. Among the more than 2000 counties, 82% of the counties voted for Trump in the 2016 election. It can be said that the group Trump most cares about will lose the most in the trade war. Ben Sass (Ben Sasse), a Republican in Nebraska, a major agricultural province, also said in a recent public statement that the Trump administration was "putting a fire" on American agriculture.
At a time when the U.S. government launched a trade war against China, Ma Yun sent a Chinese entrepreneur's voice, which may lead to more entrepreneurs in the two countries to express their views and promote frank communication between the two major economies. Ma Yun wrote at the end of the article: "changing the status quo of trade protectionism is a long and slow way. However, no matter what difficulties I face today, I have confidence in the 20 years between China and the US and have confidence in the future of the world economy.
Source: sea chart Logistics