China’s third richest man, Jack Ma, founder and cahirman of Alibaba, an international retail buying platform, met with President Elect Donald Trump this morning and pledged to create a million U.S. jobs.
While Ma’s company won’t be doing the hiring, he will be opening the Alibaba platform to U.S. small business that will get access to China’s 300 million buyers.
Alibaba is arguably China’s equivalent to Amazon or Ebay, but for foreign and largely bulk buyers.
The platform has simplified trade between China and the rest of the world.
For instance, if an entrepreneur wants to open a new fitness gym in the U.S., rather than deal with upcharges buying foreign-made products from U.S. companies, buyers can purchase directly from the source.
So that new gym can be stocked with custom made dumbbells, racks, treadmills and even custom embroidered towels all directly from China at a fraction of the retail or even wholesale cost.
By opening the market to small businesses in the U.S., the trade can now go both ways with specialty manufacturers offering their goods directly to Chinese consumers.
While manufacturing has been dominated by China for decades, American farmers may be the biggest beneficiaries to the buying platform according to Jack Ma.
Trump, who is yet to be sworn in, has received commitments from various companies from Ford to Carrier and now, Alibaba, that will put him on pace to easily exceed the number of jobs “created” by President Obama during his eight years in office . . . within Trump’s first year in office.
That task was not difficult as Obama took office with an unemployment rate or 5% and will leave office with unemployment at 4.7%.
While advocates for President Obama claim that over six million jobs were created by his administration, many of those jobs are government positions or part time work.