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| Alibaba could be the next target of Trump's war |
US President Donald Trump said on Saturday that he may put pressure on more Chinese companies such as tech giant Alibaba after his decision to ban TikTok.
When asked at the press conference that 100% other Chinese companies like Alibaba are considering a ban, Trump replied: We are looking for other companies.
Trump is putting enormous pressure on Chinese-owned companies, such as promising to ban the use of the short video app TikTok in the United States.
The US has ordered the Chinese company that owns the ByteDance app to split US TikTok operations within 90 days. This is the latest attempt to increase pressure on concerns about the security of the personal data it processes.
Trump has made the transition between China and the United States a major theme in his presidency, criticizing China and also praising China for purchasing agricultural products such as soybeans and corn. As part of the trade agreement concluded at the end of last year. .
The US is targeting some of the big Chinese tech companies like Huawei, ByteDance and Tencent, and Alibaba, one of the world's largest retail and internet companies, could follow suit.
Unlike Huawei, Huawei's global expansion rate decreased after Washington banned the use of American technology in the United States, while Alibaba had little success in expanding into the markets. Westerners.
However, it might be a good reason for Washington to become the leading national technology company in China.
Alibaba has yet to be threatened by the type of sanctions that US President Donald Trump has proposed or imposed on other Chinese tech companies.
After the Chinese billionaire announced that he would donate supplies to fight the Coronavirus pandemic, Trump spoke warmly to company founder Jack Ma and described him as a friend earlier this year.
In the eyes of US officials, the company's Secretary of State (Mike Pompeo) urged Alibaba to urge American companies to remove unreliable Chinese technology from their digital networks.
Pompeo said Washington wants to protect the personal information most sensitive to Americans and our company's most valuable intellectual property - including coronavirus vaccine research - from cloud-based systems built by companies like Alibaba and Tencent.
Alibaba operates popular and wide-ranging e-commerce platforms, most of which are available in China and other markets in Southeast Asia.
Alipay, one of the most popular payment apps in China, and Tencent's WeChat Pay have also launched.
Washington's decision will have no impact on the company's e-commerce and retail operations in China. In China, e-commerce and retail businesses account for nearly 80 percent of Alibaba's annual revenue, which is 550.9 billion yuan ($ 73.5 billion).
International sales account for 7% of the company's total sales, and even the fines levied for Alibaba's cloud business in the US would be minimal. Cloud services account for less than 10% of total sales.
Alibaba has a very large cloud computing company in China that needs American semiconductors and software to keep this business going. Although Alibaba has very little revenue in the United States, the country remains an important market.
Last year, the company opened its e-commerce store to small US companies and launched for the first time the English version of the Tmall platform, with the goal of doubling the number of foreign brands on Tmall to 40,000. Within three years.