Guys forget about him This guy can't even read his own chart America personal indebtedness is 80+% vs Chinese one which is 50% Now who is more in the hock ?
Trade war what trade war Alibaba just recorded sales jump by 61%. this article confirm Mangxiangrexu assertion
E-commerce giant
Ltd.
reported a 61% increase in sales, as Chinese consumers continued to spend on the internet despite slowing economic growth.
Alibaba, the operator of China’s two largest e-commerce platforms Taobao and Tmall, said in a statement on Thursday its core e-commerce business kept charging ahead in the most recent quarter, driving overall revenue up 61% from the year-earlier period to 80.9 billion yuan ($11.83 billion).
NYSE-listed Alibaba said it collected higher commissions and sold more ads to merchants in its fiscal first quarter, which ended June 30, as consumers kept up their purchases on its websites. The growth comes even as China’s economy
in the same period, weighed down by a top-priority government debt cleanup and fears of prolonged trade friction with the U.S.
“Domestic consumption is supported by three important trends we have seen in the past several years, and which we believe will continue to be the case,” said Joe Tsai, Alibaba’s vice chairman in a call with investors. “Real wage growth with more people joining the middle class, healthy household balance sheets based on high savings rates, and easier access to consumer credit.”
One quote from Chinese giant Alibaba shows how Trump's trade war could backfire
The Chinese retail giant Alibaba says it isn’t worried about
and the company’s comments highlight how China could gain the upper hand in the conflict.
Joseph Tsai, Alibaba’s vice chairman, told analysts during the company’s quarterly earnings call that the recent tariffs imposed by the US and China should not be a major detriment to the e-commerce giant’s business – or the Chinese economy at large.
Part of the concern with a trade war is that imposing tariffs on goods coming from the US drives up costs for those goods – leading to Chinese companies and consumers paying more.
For instance,
of US soybeans to feed their livestock could see a dramatic price increase after the imposing of tariffs. The same could apply for other goods, like US gas or food items.
But Tsai said the hit to Chinese consumers was likely to be softened by a switch to non-US goods – whether from China or another country – facilitated by the government.
“This coming November, China will hold the world’s largest import exhibition in Shanghai that will showcase products from all over the world,” Tsai said. “If US goods become too expensive due to tariffs, Chinese consumers can shift to domestic producers or imports from other parts of the world.”
Tsai said the Chinese government could ease the transition by providing support to offset increased costs.
“We believe that Chinese government policy will continue to support imports into China to satisfy the rising demand of Chinese consumers,” he said.
Tsai’s comments underscore a growing advantage for China as it tries to hold out in its trade war with Trump.
Xiaojia Zhi and Helen Qiao, China economists at Bank of America Merrill Lynch, said the shift was already beginning.
“We believe the Chinese government has more influence on how much and where to buy its imports than the US government’s influence on its own importers,” the economists wrote in a note to clients. “In other words, China could shift its imports from the US to purchases from other markets relatively more easily than the US administration pushing businesses to other alternative countries for outsourcing or imports.”
Bank of America Merrill Lynch
Shifting Chinese consumption is easier since the country’s economy gives the government more power to influence companies’ behaviours and subsidise the shift, an option the US does not have.
At the same time, the US is doing little to wean itself off Chinese goods:
- China accounted for 19.9% of all imports to the US in the first six months of the year, compared with an even 20% in 2017.
- Additionally, import growth from China actually accelerated in 2018.
- Chinese imports grew by 8.6% in the first six months of the year compared with 2017.
- Last year, Chinese imports grew by 8.4% in the first six months compared with 2016.
The Chinese data shows similar stats, with export growth to the US staying steady.
“China’s export growth to the US seemed to be pretty resilient, and held up in line with the overall trend,” Zhi and Qiao wrote. “In July, China’s export growth to the US was 11.2% yoy, slightly below its total export growth of 12.2%.”
The changes come amid the ever-escalating trade war between the US and China. After including China in a broader wave of steel and aluminium tariffs, the US first targeted Chinese goods specifically on July 6, when it hit $US34 billion worth of imports with 25% duties. China immediately responded in kind.
The US and China have since hit each other with another round of tariffs – this time on $US16 billion worth of goods each. Trump also threatened to slap tariffs on another $US200 billion worth of Chinese goods as soon as September.
Chinese consumers are less likely to see disruption.
of the US’s imports, making it the largest source of international goods sent to the US. China, on the other hand,
from the US, an amount nearly equal to the percentages China gets from Japan and South Korea.
Still, many other considerations could work against China, including political stomach for a prolonged trade fight, internal consumption, and credit woes. But looking solely at the trade figures, China appears to be holding a strong position.
Many Chinese officials do not expect the country to shift back to US supply even if the two countries resolve their battle.
“Many countries have the willingness and they totally have the capacity to take over the market share the US is enjoying in China,” an official
. “If other countries become reliable suppliers for China, it will be very difficult for the US to regain the market.”
