..

and i can see it stopped late here, green day not mean it's okay. green is probably run with more awareness than red. you know, that is kind of how you have to understand china is an often contradictory role. i was talking to my friend belinda. the first day or two when they come out at china, i feel that people and they are like jill. because life is not stressful, but it's intense. a witness said. we love it there. but that is what alibaba has. for example, if you buy an alibaba from a merchant, let's take another example. it might be, i don't know, it not me, but i heard a story about a guy selling type, stockings.

all he does -- he is very, very good. he's always been good quality. it's always delivered on time. he works for nestlé, but he goes home and makes five times his salary just telling women's tights. it's not just one-off kind of thing. they have a function that is like a messenger client that pops up when you have almost like the vendors. you basically have people who you know are your guide. the true person under the umbrella person. they will also give you discounts can send you free stuff. the alibaba is thriving because it's re-created that china that we love online at ebay and others are like you have to fill in this form. they just failed. even though they had a very good

early start, but they kind of messed it up. have a whole turn the humiliation at ebay. make whitman was early to see that she was let down by people on our team. there is not unrelated answer to your question. >> first about kermit thank you for being here and sharing the story of alibaba and jack ma. i was on if you could tell us about respect to alibaba as well as you product in your discussion that there's going to be a venture here in d.c. as well as new york. two questions. is it going to a government affairs officer again come help me out.

>> also get the first one. the second line -- i think eric pollitt ca is the representative consensus or grab you to go to san francisco. they have a lot of people who are in the white house, commerce, and kind of trading bodies. so clearly there is a political element or at least government to to government element because we've seen how many chinese companies have not played that card well. famously commits a major manufacturer, my home broadband in the u.k. is cheap and i love it, but the u.s., sprint was not allowed to buy from them and make tab was not to be chinese or something. so there is an awareness, but there's also practical reasons to reach out and i think penny pritzker has visited.

in fact, my former colleague, ted dean, through whom i met jack mas now working at the commerce department. you have to engage with the government aspect. there's this endless question of how this alibaba deal with the chinese government and internet. i tend to think of it not just in the country, but the global level. apple, fbi. tech companies have huge power, huge influence. of course they have to convince all. the competitors, jay p. -- i tested to look around, also way to connect with their friends. i can see right now in d.c. there are like hundreds of people, including public chinese students, but also others like ourselves who use reach out as an app for their daily life. in china, which we can't do here, you can go out without your wallet if this is your

digital wallet. i can save you money right now. i could do location. everybody in this room, we could put ourselves on a map. they were dispersed over d.c. like to converge on one point, using we chat. there is a huge functionality and that's been a challenge. they have their own path, but they're a bit late to the game and they spent a lot of money catching up. they bought at china's twitter and internationally they've invested in and snapchat in things like that. what's important on e-commerce is i think i can have up to 100 people in a group, maybe 200 in my private group. people are selling stuff this way. the types guy or the umbrella guy cannot 100 people in the group and its very powerful because of my friend says these are the best umbrellas, i'm more likely to do it.

so with that we chat commerce. so it's a very interesting time across the border from hong kong and is worth actually more last i checked an alibaba. so that is the main competition on e-commerce in this mobile arena. he mentioned china's google currently because google messed up by leaving prematurely. they didn't need to frankly. there is a whole debate around that. but they are not as innovative as a company as they would like to be or as google is an struggling and e-commerce. they have some aspects, some headway delivery. everything you do in china increased you do from your cell phone. order any kind of food, any product will be too firmly within an hour, sometimes 10 minutes. others have an estate in this

offline to offline submerging effectively. think effectively. think of best buy and how difficult it is for them. alibaba bought the equivalent of best buy, which is called sunni or they invested in it because you need to merge on an offline commerce at me to stop lending using cell phones and others laugh. the main competition in china we collect vat. it's really in my view and sometimes they gang up. they don't live like they do. rapidly it's not a woman friendly founder frankly jack ma and pony ma, they are not related, but it gets confusing. for example, through prayer. in china, cooper is not doing well. but it's one market where frankly they are behind. the recent alibaba both have proxy equivalent and they are

very quick to scale because they have this huge distribution. i was so intense the competition between this company that they ended up merging them. they are spending hundreds of millions of dollars, a month on subsidizing. passengers were being paid to get into a car. in one case, alibaba was offering free to drivers. they would come pick up the creative ear, not the most intelligent of promotions. they ended up merging. entries may now, you see alibaba are investing. who here uses lyft? most people use uber. and competitive landscape is increasingly influenced by china and vice versa.

this is a three-day global chessboard if you can imagine that. that is what the stakes are so high. >> take it up with management. wonderful book. pleased to have you. >> this is cross marketing. >> i'm going to ask a totally pedestrian, very simple total i don't know question, which is this. but if the weirdest thing you can buy on the alibaba online. >> this is c-span, right? >> bottled parts adventure. another guy was making earrings made from mosquitoes.

they are quite popular. w-whiskey doesn't amber, 10 of jurassic park fashion. but then he got lots of requests. it's a quite funny guy. he told the story of people saying i would like matching and all mosquitoes are unique like snowflakes. i'm not going to do that for you. so one child expert here. so you can outsource a breakup with your girlfriend or partner. there are people who offer services. it is not just products. increasingly it is services. you are too scared to break out, get somebody else to do it for you. you're under pressure to show up with the dates. there's all these horrible stories of the cake i made a just to appease the two parents doing horribly wrong. you could actually just higher.

one hour as i did them over doing it for the one child. there is a law. and the refined if people don't visit their aging parents. you can actually hire somebody to visit your parents. how great would that be if you didn't have to fly to buffalo at a scathing. particularly the chinese person shows up if you're like me. i think he visited. i mean anything. you name it. if it's illegal ash, you can do it. services. that is opening a whole new arena. it's just a reflection of

chinese society. it's piloting crazy stuff happening there. >> high, for those of us who don't follow china but closely, there's a couple of impressions going around. one is that she campaign has pretty much continues to exert a lot of influence in the area of using correction to clean up the system if you make one headline. on the other hand it's clear if leading to a different area that you used the phrase of global situation, you brought globalization into that. is there any interaction between the ecosphere of the xi jinping world and the world of say jack ma. >> yes. >> could you elaborate.

>> it's really a key part of the conclusion of where we are heading with this and can we have a seemingly having a different direction world, particularly under xi jinping. we wouldn't have this discussion so much, but certainly under this authoritarian, centralizing influence elements of nationalism. he just declared some holiday, september 15th is national security awareness day. two days before, jack had just declared the ninth of september joe joe, also means alcohol. but the italian prime minister and allow no, jack declared and is quite safe is still open. the chinese are going to clear out. we have this engaging china but

it's time for national security -- china. the way i think of it as this. jack is very dominant. it has to move into new areas. sometimes 70% or 80% of the market. the area he's chosen to expand two, two of the biggest star finance and media. both of those are factors for the state plays a very big role. i talked earlier about how jack created this triangle of logistics in e-commerce. and as a currency for digital things in china, but increasingly for everything. when jack launched a fun, if you have money in your account, you can put it and pay 2% more than the state bank and he caught a leftover treasure. $100 billion went immediately into that thing.

the banks were scared. even though the banks control hundreds of trillions, they never experienced competition like this and they been pushing back. you go to the bank and say are you sure this company is an upstart. the banks are fighting back in the same in media. in fact, xi jinping is increasing state control. a lot of journalists are quitting, things like that. but on the other hand, the internet is becoming a popular way. the way jack jokes about this, i forget how many, 78 quotes he always makes it's probably going to be this one. if people really want to be successful, they had to be wise, credible and audacious. he often talks about the government if you've never

married the government, fall in love, but never married them. if you do marry the government, you are polygamists because there's so many errands that the government and they confided to a friend of mine last year. it won't happen again. 40,000 government visit in one year. this could be the provincial head, the bureau, local mayor, whatever. you can't say no. they have the whole two were. it's amazing they have lots of maps and things. people are proud of the alibaba including government officials. alibaba is a bright and shiny product. they move from the old china manufacturing pollution. that's very useful. jack has made himself useful.

it's a strategy. his whole life is about being very entrepreneurial and knowing what people in it, knowing the customer and the customer sometimes as the government. i don't know the answer to where the disconnect will have been. nobody knows who is the prime minister of china because you don't have much power. he's a good friend of jack in many in and out talking about internet plus economy. it doesn't matter if xi jinping is really calling all the shots. party secretary in theory is a connection. we don't see this chemistry. when we just met, we had our team that in 2000. 99 evening.

and is that the u.s. and we went to meet jack and i think she tried to sell us real estate. >> c. connection. >> of the money are since i left china, i read the check has now become involved in it on topic pursued. i'm wondering if that is something he is known for in china as well. how does that resonate with the chinese and acc -- as any sort of a moral authority as well for the ladies can did itself over the series and is now up into more philanthropic. >> jack ma lives in very elevated circles with warren

buffet and bill gates, such as some extent on the check jack is innovating much more effectively than the government of china is that these people. jack is inspired by tales of martial arts and history of china, chinese tradition, taoism. you can argue it both interesting because he's talking about health care. they're invested in pharmaceutical companies. china has huge problems with pollution, aging population. and the u.s. it's easier to do something, for example, he thought the huge estate to help preserve the fisheries in the maple syrup. and you can do that. it's difficult in china. some billionaire bought some land and immediately people come out of the woodwork claiming this and not.

china is still debating how to deal with ngos. in china recalled in government organized nongovernment organizations. anything that isn't the party is potentially a threat. so another example where jack is pushing the envelope saying we need to change these things and his friend, jeff the, even yeah ming, helping reduce the consumption of illegal wildlife. the young man has done amazing things in saving sharks and now individual celebrity culture is in china, too. the government needs to adapt. this is his legacy mode now. there's an element of selfishness. why not. i think he genuinely cares about it. the gentleman who's been very patient. and then we will take behind. >> thank you. very interesting commentary.

the government of china has been trying to move the economy away from the investment of export model towards consumption for many, many years. experts have fallen off the cliff. this model that jackpot has come up with is very a mass-market novel. d.c. this actually having a significant part on ship in demand in china to a marked domestic oriented model for you to know the numbers are in the billions and millions, is it still just too small to make that kind of the difference? >> sort of talk about grocery deliveries online. another one of the things. in the u.s., e-commerce is deserved. -- desert.

there's two aspects to encourage consumption to save less and spend more. as pension reform, labor market reform, social security. although they are the key not >> is the e-commerce space going to be significant enough to shift the economy despite the billions of monies that are going to be just up a small portion compared to the trillions and trillions of the entire economy. >> it out, the symbolism essay is dead to bright shiny object is very useful. it does have an impact in reducing action of people to spend money. particularly if you talk about

inland cities that the state brand stores is opening up their markets. this is the big question now. can china make the shift towards the middle income trap? it depends where you go. if you were to go right now where my partner is from an look at the terrible situation with coal mine, you're going to have a completely different experience. there are many different realities. i think alibaba is trying to make it felt indestructible from.shift. that's good for them above but also good for the country. the vice chair were interviewing the book says it's good for america is good for gm. beecher slows down in the economy would create big

problems. it's really hard to put the genie back in the box. that is to think about giving consumers trust, the sense of choice is really what has been powering china's economic revolution. it's going to be a race against time. >> my question is related to die. someone who is concerned about the development of press freedom in china or lack thereof, what do you think jack mas intentions are? >> way. alibaba recently purchased in hong kong, which he knows he made english-language newspaper. there is one other still left it hanging on.

my colleague ted wrote symmetry with this whole story. just a so says he now has purchased the "washington post" and by all accounts going well. people have the feeling that editorial and opinion. that's not really an accurate comparison for jack. he did it through the company. it is taking them into pretty choppy waters. hong kong has never been more -- it's had some rough times in the past. but today we see a new political party. so why would she wander into that? it's not just the south china

post. it's pretty hard to say were they to do it, they want to do it? the companies defended it by saying frankly they're invested in the business. i would say they probably saved the paper because it is on a slow decline. but we don't know what they will do with it other stuff. this crops up a lot. it's a very symbolic business because it is how china and the west interact or seem to interact. it's too early to say. i don't think they're going to use it for aperture does. if it's going to become a vehicle, the panama papers were not in that they do columnists we all love was showing that. rent we then went to "new york

times" either. if they were participating to have some hard-hitting stories and it's been done to be completely saying nothing happened. but in beijing, news is increasingly -- extremely sensitive on domestic newspapers including the innovative ones elsewhere and publicly saying why they are quitting. but there is sensitive because it might be a high pollution count today. that's going to be a thing. that's the whole show. i think you are right. it is a very thorough and good i was just speaking with orville schell last night, you know has written extensively about what he did is equate deteriorating environment embassy about how

many people are coming to a head, academics in china who just want to be. i remember a few years ago china has been recruiting talent, particularly in biochemistry and things like that in a certain aspects we see people wanting to leave. this is in issue for china. can it become a nation if the talent is leaving. in public schools here, but certainly neither received more and more chinese sending troops overseas because they are frustrated. i want to study liberal arts or something like that. there's a lot happening that is like a boiling pot right now just hammering down the lid. probably not a good idea. the internet -- social media to some extent allows people to vent and also bright and circuses. giving people things they can do, play games, i staff.

i don't know is the answer. canary in the coal mine. i think we exhausted -- any comments? yes, we do. >> high, in the interest i should say we were in high school together. yes, it is me. basically alibaba is a marketplace. you are saying essentially selling plastic bins -- >> the origins. >> originally. and it is selling more and more stuff in the chinese are trying to build this can ever base model. d.c. the emergence of nature or in emerging in china?

they are already higher, which makes things, whatever problems they may have. do you think the emergence of global brands are at this very powerful brand, either powerful brand in china and do you think it's a model that could be expanding and play apart's expansion of the consumer-based society? >> it is happening. you mentioned some names. some of these have more links in the state. others are more private sector. they actually wear but general maxim has one more things i did but there is an element, a desire to shift on the back of your phone made in china, designed in california. china wants -- they want to design in china. it is now a major league mark for manufacturerau