Alibaba sees solid sales of US products despite the dispute

(Bloomberg) – Alibaba is projecting strong US product sales into its online markets during Singles Day, despite the trade war and the slowdown in the Chinese economy.

Its president, Michael Evans, said he was not "too worried" about the possibility that combat could affect sales during the event that will start on Sunday. "The 11/11 is not an event that depends solely on a single market," Evans told Bloomberg TV in an interview released on Friday. "We will work with over 200 countries and regions as part of this great event, so we do not expect any area to have a major influence, apart from China, of course."

As for the Chinese economy, Evans stated that "there is some uncertainty about what will happen in the future" and recalled that growth in the country still remains around 6.5% at the time of the year. year.

Alibaba reports a lower demand for expensive items like washing machines, televisions and cars, Evans said. But other sectors like cosmetics, food, fashion and clothing remain strong. The company focuses on the 300 million Chinese expected to enter the ranks of the middle class over the next five years, he said.

The Hangzhou company is advertised as a tool for global brands to reach the Chinese consumer, with over 10,000 US brands, including Nike and Starbucks, which sell products on their Tmall Global site. The co-founder of billionaire Jack Ma was a detractor of the tariffs applied to hundreds of thousands of dollars in American and Chinese products and defined the commercial war "the most stupid in the world". The retaliation fees set by the Asian giant are about products such as food and wine, which are popular elements on Alibaba's platforms.

Alibaba has already ruled out its promise to create one million jobs in the United States, but has not "renounced our initiatives seeking to create jobs in the United States for small businesses," said Evans. "It's a bit more difficult if the tension between these two governments continues, because we do not want to be involved in geopolitical discussions".

Original note: Alibaba expects strong sales in the United States Goods despite the trade war

Reporter in the original story: Selina Wang in San Francisco, swang533@bloomberg.net, Olivia Carville in New York, ocarville1@bloomberg.net

Editors responsible for the original story: Jillian Ward, jward56@bloomberg.net, Molly Schuetz, Alistair Barr

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© 2018 Bloomberg L.P.

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