The end of the quarrel between Trump and China might not end soon, as talks about America to block Alibaba arises. After shooting bullets on Huawei, TikTok, and WeChat, Alibaba seems to become the next target. Alibaba’s side is still unminding and hasn’t given any feedback upon the said rumours.
Trump, to betray his “dear friend”, Jack Ma, and block Alibaba?
America has been pushing back China’s tech prowess. Previously, ByteDance’s TikTok and Tencent’s WeChat have been blocked by America. This raises questions about Alibaba’s future, which ironically, Trump had previously called the founder, Jack Ma, a “friend of mine” after the company agreed to donate supplies to fight the coronavirus pandemic.
Washington official stated the two companies, ByteDance and Tencent, were blocked due to safety reasons relating to allegedly personal data violations of their users. The officials gave the same alibi for the possibility of Alibaba’s future in America.
CNN Business mentions the Secretary of State Mike Pompeo has urged American companies to detach “untrusted” Chinese-based technology from their digital networks. He further elaborated that they simply want to protect the citizens of America from personal information and business-related intellectual property, as well as the ongoing COVID vaccine research. Officials fear foreign cloud-based systems may snitch such important data.
Alibaba is nonchalant despite the rumour
While ByteDance and Huawei have been rampant with their global expansion, Alibaba’s main market is still the mainland of China. Its payment apps, Alipay, is currently one of the most sought after payment choices, along with Tencent’s WeChat Pay.
CNN Business revealed that China accounts for almost 80% of Alibaba’s annual revenue with 509.7 billion yuan ($73.5 billion). Merely around 7% of the company’s total haul is taken from international retail and wholesale revenue. Alibaba’s cloud services also account for under 10% of the total revenue.
While international companies should not underestimate the United States’ market, US firms may also suffer impacts from international companies’ blockings. As of now, Alibaba remains silent and has not given any response to the rumour of America blocking Alibaba.
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