Jack Ma (China's richest man): This Is Gonna Be the Future | BUSINESS ADVICE
Jack mom there, you know there's still quite a significant, digital divide out there. Nearly. 4 billion people not yet connected, and so. That leads whenever, there's a discussion, among policymakers and, others about e-commerce. Leads. To a question mark as to whether, the. Expansion, of e-commerce may. Primarily, benefit, the advanced countries, and the countries that are less, developed, in this regard what's. Your thinking and your experience, in that regard yeah. My, belief is ecommerce. Is the. Future, and e-commerce. Is, going. To replace a lot of traditional. Way of doing business, people. Say in the past 20 years with. Poor, logistic. Terrible. Payment, terrible. Connection, of the Internet in the world the. Stute ecommerce, grow like this, for. Our platform. Allowing. China in the past 15, years, people. Say I know largest, a no credit system, no financing, no this and all that even that last. Year, our, selves. On our, platform, it's more than. 750. Billion, US, dollars GMB, cells it's, almost breaking. Number, 21, countries GDP. Only. 20 years imagine, without. A. Perfect. Logistic, system without, a perfect. Payment, system without, blockage. In technology, they grow like this what, if the next 20 years where. All the technology, ready when, all the government, and, organizations. And entrepreneurs are ready they, think this is a lifestyle. This, is the way young. People live and it's. Going to be the future so, ecommerce, is not for big company, ecommerce. Is not for the developer, the country's ecommerce. Is. For developing, countries for, young people, and small, business because in the past days young. People don't have chance to compete small. Business, they, don't have chance to compete with the big, companies and, developing. Countries don't, have chance to. Imagine, that country like China can can. Grow like this I think a pelo a few, years ago I went there. That. Day I remember I went to ask where. People. Were demonstration. Right. I was happened, to be there people hated, the e-commerce and southerner. There's a young. The. Pulu young man said I. Using. Internet, and I, sold my pollute, products, to, New, Zealand Australia. Which, I never thought in my life could do it with the Internet so, it. Would be the future because. Young, people love it, anything. Young people love it, it. Has the future, that's. My point okay thanks. Roberto. Acevedo you, just came out last month of a important, ministerial. Meeting in Buenos. Aires, and. There was a lot of discussion, maybe some of the most discussion, about any topic, as far as I could tell was about e-commerce tell, us a little bit about how, the multilateral, community, views this. Issue well. I think I. I, agree entirely what what has been said about the potential, of e-commerce. I think. This potential, as far, as cross-border. E-commerce. Is concerned. Business-to-consumer. There, is a lot of potential to be realized, it's, still in the very early stages, it, we are crawling, this. Is we're still a baby there's. A lot, to be done, so, and. I think that, this. Potential. Of. Cross-border. E-commerce. Needs. The, feedback. Of the, international, community, and. It's not going to be government's alone governments, are known are not going to do it they, need the feedback from the people on the ground they need people like Jack Ma big, company, big platform, and. Rags-to-riches. And. Others. Participating. Together because, they are the ones who understand, the problems they're the ones who, see the challenges, they are the ones who see where, the bottlenecks, are. Governments don't government. Still have rules and regulations that apply to the 20th. Century trade that's.
Gone That's, going to disappear. So. We have to have the means to have this conversation and, that's why in Buenos Aires I was very excited to launch this initiative with. Ewt. P and, with, the web, which. Will bring together not. Only governments. But also the. Private sector, academia. Everybody. Sitting, together to figure out the way forward if, we cross our arms. Ecommerce. Is going to be the. Exclusivity, of the big companies of the, big guys because, they're the ones who can go through this myriad. Of bureaucracy. And tons. Of papers that you have to fill in hi, trade costs, if you want to make it inclusive and, that's. Where. Governments. And communities win. We. Need to make it simpler we need to make it more expedited, that is, the conversation that we have to have without it it's going in the wrong direction. Let. Me broaden the, the frame of the discussion for a moment you. Know here during this week in Davos. One. Of the top. Issues for debate is where. Trade, policy, is going are, we going to seek additional. Restrictive. Measures. Are. We seeing potentially. More rivalry. Among trading, bloc's and Jack. You have family. Famously, said I think I read once that. When, trade stops war. Begins, how. Do you see the. Evolution of, this debate and what, role do you think the, e-commerce. Industry. Can. Play in helping matters. Yeah. I think. It is, impossible. To stop, the trade. The. World needs trade trade. Is supposed, to way to, solve wars if, the. Trade stops, the world starts, this is always our belief trade. Have. To have, to be changed, and WTO. Has done, great, job in, the past, years in, order to making. Sure the, world understand, each other being, in order to making sure the, trade is the opportunity, for everybody. But. I think, today. The. World has changed because, of the new technology, I, was. Able to say in the future there, will be no mating, China, no made in America. No mating Pulu it's going to be mating on the internet a young. People connecting, each other online in. The future no matter you like or don't like, we will enable every, young people every small business to. To, by global, sell. Globally and, deliver. Globally, and pay. Globally, and travel. Google global it just to maybe with a mobile phone even, without a with, a passport this. Is the trend nobody. Can stop it so, protectionism. And, globalization. I think globalization, is a great thing you. Should not occur the baby before even the baby was born today. Globalization. Is a growing, pain and, there. Were there it's so easy to launch a trade war, but. It's so difficult to, stop the disaster of this war and I'm. Scared, and I, concerned, I don't, think the world should have, the you know don't, use trade. As. A, weapon, use. A trade, as the solution, to solve the problems, when. You're suctioning the other country, it. Is your assumption those, small, young small, business young people, they, will kill just, like you're bombing somewhere, civil civilization. Uske so we, believe we should using, the internet, using e-commerce. Encourage. Young people the, more trader we have the more business, will come up there, are hundreds, of ways to solve the problem but there is only one reason the one if you want to launch a trade of war it's easy but, I will say it takes about thirty years to fix that pain so, my. View is we. Should. Not have a trade war and we. Have a plant of ways to, solve the problem and third. We. Should not let the. World global, trade controlled. By 60,000. Big companies, we. Should make in technology. Policies. To. Encouraging. 6 million, or 16. Million or 60, million business, then can get benefit. From small, business from, small business like entrepreneurs. From Philippine they can sell globally they can buy globally, this is the future and it. Works. So. You know much of the response. To, debate. About rising. Restrictions. Is that, we need to make our economies, more inclusive, and I. Guess I would open it up to the panelists, to talk, a little bit about how they think. This. Aspect. Of Commerce he. Enabled, commerce, and investment, can, help make. The economy more inclusive, make trade more progressive, or inclusive. Anyone. Care to comment, yes Prime Minister I would, say from the point. Of view of a government, first. Open. Markets I totally. Agree just. Yesterday the. TPP, was agreed, without. Us, but. There are other 11, countries already, agreed. To have free, trade among themselves with. Try facilitation. With, investment. Facilitation. And helping. Each other so that's very important, so some, countries, may think that, reducing.
Trade Is good for them but for us, many. Of us are we, are very happy to have trade and cooperate, and, most. Of us are in the Pacific, area. So we believe that we can increase, the possibilities, of our SMEs. Second. I think. We have to make easy. For. Our friends, to, have. Digital. Knowledge. So we have to build capacities. We. Have to provide, services, through internet so, for example in our country we have Peru, dot, got like. Our. Main. Instrument. To connect with SMEs. So they can have easy, registration. Paying. Tax. Access. To. Platforms. Of credit. Facilitating. The payment. Processors. And reduce, the cost, all. The administrative. Procedures. Should, be reduced and then we can help them to be there, and. Of course give information, on what, are other countries which, we train, have. Us, information, that they will need to get, into the other country, so I think we. The. Government has to help our. Enterprises. To be promoted, otherwise, it. Will be this. Market taking but the, big large, e-commerce. Retailers. And we don't want that we want them to be moving. As you said, with. Other small. Firms all together, so this is something that we can, have user, friendly. And. Keeping. People, in touch with each other and the. Government should be the tre facilitator, in this case. So. In the perspective of a social entrepreneur, I represent. Hundreds. Even thousands, of artisans, who are in poverty and when you are marginalized. And when you're vulnerable it comes, with a lot of burden it comes, with a lot of gaps so, the technology, definitely is, a gap Logistics, absolutely. Infrastructure. Internet service definitely. But, also one of the biggest things that we realize is education, so. When. We, were starting just as an example we. Asked our artisans, to, source. For animal, print lining for our products, because we're in fashion now so we have to think, fashion-forward, so. They, sourced. Animal. Print lining and they came back to us with Winnie. The Pooh, spider-man. And. We. Were very. Shocked but at the same time we realize that even if we speak the same language, we don't necessarily understand. Each other and now. The technology is really fast there are lots of people who could get left behind so. I believe, we have to empower the entrepreneurs. So that they can be the bridge and the connectors, to, communities. Who are in poverty because ecommerce has the potential to link, them to the market definitely, but, also to lift them out of poverty, we have such a big opportunity in our hands now so, we need to empower those who can make those connections. Director-general. We've. Just heard a list. Of very practical constraints. As. I understand it Therese you. You sell, 90 percent of your activity. Domestically. Ten percent export and presumably. Part of the reason for that ratio is that you are encountering, a number of very practical, constraints. We, know in the multilateral framework, in the WTO, we don't yet have specific. Obligations, and rules in, detail, in this area and even, 20% of regional trade agreements don't. Have a full-fledged, set of. Cooperative. Frameworks, and rules in this area can. You reflect a little bit about how you see our, initiative. As. An opportunity, to move the ball forward while. The formal, negotiating, process kind of catches up to what's happening on the ground in the market yet, I have to say this conversation. Is already, happening, in the WTO, to, some extent, one. Big, element. Of this conversation is the digital divide we. Still we know that about four billion people still don't have access to the Internet. Small. Developing. Countries, don't, have the infrastructure, they don't have sometimes even electricity, so, it's difficult to bring them on board I.
Can, Only imagine the kind of logistical. Difficulties, that, exist in the Philippines with so many islands, and artisans. In different places so, this. Is a big challenge and I think you cannot think of e-commerce, without, thinking of how, to integrate, the small the poor countries, into this equation as well so it's not something that you do only domestically, you have to think it globally, so, another. Important, thing that in the WTO, we're trying to figure out is which. Are the. Main. Challenges. Which are the ones that we have to address first because when you begin a conversation about e-commerce it. Very, quickly, covers, one. Thousand, different aspects. It's, difficult, to attribute priorities. And say let's, let's take this first step let's, do this first and. Just. Now in Buenos Aires we had more than 70, countries signing. Up a declaration. That they, will discuss the issue of e-commerce they will try to set up a conversation. That could lead in the future to, negotiations. I think, this initiative, of. Enabling. Ecommerce. By the web the WTO, and and, and Edom UTP, will. Allow, us to frame, the conversation that, is going to happen because, otherwise, people are, going to sit around the table and they, won't know what to do because, there will be so, many things to handle that, they will get lost in the forest so, we need to figure. Out the priorities, the challenges, and that can only come if. You talk to the private sector if you talk to the operators, the people who face the challenges, otherwise. We're, going to be lost and that's what I hope this initiative, will deliver Jack. You know you're you, have a. Rapidly. Mushrooming. Business. And. Indeed by, 2020, it's been estimated that e-commerce will, want to be a trillion dollars or more in value. Yet. You're spending time in doing what Roberto just talked about which is to be part of a process to, get very, concrete, discussions, between private.
Sector Not. Just your firm but many other firms and, governments. To try to improve the enabling environment there, tell, me why you want to allocate, your. Precious time to that type of endeavor yeah thank you I think this, is what this initiative about, this is we are very excited about partner. With wef and WTO, to promote, the ewt, peacock electronic, world, trade, platform, or, electronic. World, tourism. Platform. We, think tourism, because, of the cross, border of tourism, is going to bring a lot of business, opportunity. For small business, but. Let me think this it's, very important, for private sectors and public. Sectors to have a dialogue, to discuss I, respect. A. Acevedo's. I, positive. Thinking, today. A lot, of regulators. Worry. Too much oh my god you got a security, you don't have enough this enough dad you know you worried this worried that, when. You worry it comes you, don't worry it comes, right. You, like it it come if you don't like it comes. Many. Years ago 17. Years ago when I study Commerce in China people say hey China, even don't have a PCs why you have a ecommerce, well. Then. We'd never nobody, expect, China suddenly have become a country with so many mobile, phones. Which. Is easier, to build a roads or build, a mobile system, buuuut mobile, system, is much easier, than build up the roads and infrastructures. I, remember. 1994. In the winter night in Beijing, a group. Of experts. Of IT, and. Internet. Expert, I was confused. 1994. There's internet, experts, gathered. Together think, about how, to regulate. Internet, I was. In. That meeting and, then. After, like two hours debating they, have a lot of worries. So. 20 years passed all. The things those people worried never come up all, the things they don't worry about all come up. Let. Me tell you one thing the comp commerce, is, changing. The way we do business as, I. Said the, traditional, business is B to C in the. Future is it, to be consumer. To business most, of the things are tailor-made in the, past all, the traditional, cross ball the business is goals, through, containers, in the, future, most, of the business work goes through packages. So. The, rules and laws who, have a huge, change. Today. From. China, to. Russia even. Through is there's 1 million package, from, China to, Russia and without, even consider how many package from Russia to China but even, 1 million packages, from China to Russia per day think, about it. Four, years five years ago we. Launched, a campaign. Only. 80,000, packages, from China Russia the, whole Russian post of the system crashed today. One, minute no problem. Government. Is learning people. Are learning ancient, producer learning, when. There is a demand there's, a way so. I think. Government. Should not think about how to, regulate, the, way government, think about regulate, is the. Way they think about 30 years ago when. I talk a lot of government, offices the first thing, they think about is hmm, how can i regulate I hope. Next the city years the first thing to think about how. Can I help. What. Shall we change to. Making sure our young people, our small. Business our trade, can, in and out. Smoothly. This. Is the positive thinking, so, I sat, in Argentina. Whether. You like it would. Do it you, don't like it we, would do it right because. This. Thing is coming. And the. Hope of making this thing good is work, with young people work, with the smart government offices. Organizations. Let's, push let's talk anything. Coming up don't worry there, is a way if you. Are not smart there, are smart people there. This. Is my belief so. That's the spirit. Bottled. In one piece. Of, what this initiative. Is about it's. You know there are a series of practical, obstacles, as you just described, a payment, see signatures, consumer. Protection. Customs. Logistics. And what not these, are not solely the province of regulation, I think is your point and so the process that you've just articulated so, well is a very practical solution in one and I'm. Happy to say a Prime Minister that there early discussions, between the initiative, and the. Pacific Alliance and the, inter-american Development, Bank of potentially, supporting. Such a very practical process, in, the region and I just want a signal appreciation. And give you an opportunity to talk about how you see the. Pacific Alliance moving, forward in this regard I, think. The Pacific, Alliance, which. Is growing now because not on we are not only for. Up right, now we're gonna be ate very, soon because. Canada, Australia. Singapore. And, New, Zealand. Probably will, be joining the. Pacific Alliance is. Another way to address the issue with cooperation, and, learning. Across. Each, other because. It's very interesting the processes, each country, can bring, given. Their own experiences. So. This. Is an interesting way to address, the issue in. As. You mentioned, young people, are the ones who are creating, the new things you know I can, remember my, daughter. Teases. For, her graduation as a business. Professional. Was.
Trading. Art to. Internet and she, prepare. Special. Application, where you can trade art for, young people which, is so hard to get in the galleries, and they are so expensive you know so, these young people, are creating, things and I'm sure young, people across all. These, countries can create this, development, because these young people, are the Millennials. Are the ones who I'm pushing, ahead, our. Trade, in just, a couple of years Peru growth, in, terms of, e-commerce. When. Grew. Like. Almost. 300 percent in, couple, of years and we think this process will be still growing, 30 percent each year min, as a minimum, so, it's because. These young people are moving in that direction, we. Are improving. Broadband. And, we, have to work all together in, creating, these spaces of, growth. Among. Ourselves. Thank you we've reached the end of our time will, you join me in thanking with, appreciation. The great panels we've had here today. That. Audience. I wish, everyone a good, remainder, of the day.