[BLANK_AUDIO] >> It's a great pleasure for us to give a
warm welcome to, to Jack Ma. Thank you. [NOISE]. >> I it's my great honor. And I was invited about months ago. And it's, I did not expect people said
this is a very sensi, sensitive time for me to talk, because about a yahoo,
about alibaba about this and all that. But a promise is a promise I come. Today [LAUGH] any questions you have. I will answer any questions you have. All right, so I've been here for 15 days
and I plan to spend one year here. And nobody knows, my company did not know,
that I'm gonna spend a year here. Guess people ask, why you're here? Are you ready for catching Yahoo? No. [LAUGH] Everybody was very sensitive when
I said I'm gonna spend one year there. And I just come here, I'm tired. Too tired, in the past 16 years, I start
my business. When I started 1994, find the internet,
and I got crazy about the internet. Give up my job in the teaching, and. Like, I call myself like a blind man,
riding on the back of blind tigers, jumping
around still kicking, and still surviving, and then join the
government organization for 16 miles, and not successful start Ali
Baba 1999. And we built up the Alibaba. We're lucky enough to have the Taobao. We have the Alipay. We have Ali Cloud Computing. And so many things after 12 years, I say,
I need some time to rest. Especially this year, was so difficult for
me. I do not expect I prepare for twelve year
in china called [UNKNOWN] this is our
twelveth year for Alibaba,and the beginning of the year we have you know the
moving for the Alibaba to be CEO because of their
custom cheating things. And then we have the Alipay about the
VIES, I still don't know what the VIE is, right? And then we have we have the the Ali
Taobaos separated into four parts. So many things that really make me feel
tired. And I said, well, why not give up one
year. Because next year is my personal
[UNKNOWN], which is, could be much more difficult. This year was very tough and difficult. I believe next year is gonna tougher and
more difficult and more complex. So I got ready for that. And I need, think I need a rest, so in order to, for another three, four years
how to work it. Because this three years is not my job. If something wrong, criticize this
president of Taobao, CEO of Alibaba and Alipay, it's their
fault. Because three years, their fault. Three years later, something wrong, my
fault. So, I come here and I spend most of my
time in the states. And then thinking, relaxing and just two
days ago, I picked up on my golf, and here, and just
relax. So nothing about, the things people think
about. So, we. Are very lucky company. And there is no chance that we survived. I don't have any sort of backgrounds, a
rich father, or strong uncles or. [LAUGH] And hm, I, I remember 1999, I came
to silicon valley. Looking for venture capitalist. I talk to a lot of magic capitalist and I
re, remember few days when I drove by, by the [UNKNOWN]
park, right? I, I was, I was rejected by so many
venture capitalist. When I talk about Alibaba start ups they
look at me strange. What? Alibaba, what are talking about? Right I, I, I went back to China with
nothing, no money, nobody invested in me. But I full of confidence I saw the
American dreams. At the time 1999, I walk on the high
express way, and on the high express way every evening full of
cars and of the parks. Of the companies episodes weekends full of
cars. And people working day and night, and now,
this is something I believe is going to
happening in China. without it getting any venture capitalist. But, I think I went back China with the
American dreams. And we started the business there, and
after 12 years, you know, a lot of things
happened. We, we, we'd build up the B2B and nobody
believed the B2B would work, because the B2B at that time was good, but Ariba,
I don't know if still there. Yeah, Ariba, ariba.com, [UNKNOWN] and
commerce one, and these are very famous B2B companies. People say, how can you do B2B in China. Because B2B in the US is the focus of big
companies. They focus on buyers. And we believe there's no big companies in
China. And I don't see that there are big
companies, in, in the short term that would China have a lot
of big companies. Because big companies only SOE. SOE they do not need e-commerce. They need is government policy, right? So we focus a small business. We bec, we believe. China the small business, the private
sectors are the future. So we'll focus on that. And the B2B in the U S the focus on
buyers, they want help the buyers to save the cost, to
save the time. We believe don't teach the SME, don't
teach the small business how to save the cost because, they know much
better than you do. You should help them how to make money. So we focus on helping small business. We focus on helping them to make money, to
sell things abroad. Very difficult to do business at that
time. But after 12 years we got more than 58 million small business around the world,
using our services. That. That model is not very sexy. Compared to [INAUDIBLE] we do not make
that much money, like online gamings. But we can sleep well in the evening, because the money we make not online
gamings. The money we make, is helping small
business to survive, to get business opportunities, which I
feel very proud about that. And, today, as always, I never feel proud of
how much money we make. I feel proud how much impact we can help
the others, especially small business. Before the history of internet, no company
can help over 50 million SMEs. Today, we are trying. And I feel proud of that. This is the first company. And people say, Jack. If you make Alibaba successful, that means
you, you are pulling a million tons of ship on the top of the
Himalayas. [LAUGH] And I say yes, we will carry that
thing down. And we did. The second company is called the Taobao. And everybody say, oh, my God you, are
competing with eBay. I said, why not? China needs an e-commerce site. And builder of the China market takes
effort, takes time. And takes great effort, you really want to
build up something. But at that time, people say, there's no
chance. Well, if you never try, don't, how do you
know there's no chance? So we try, and I said, we that, if, if,
eBay are the sharks in the ocean, we are the
crocodiles in the Yancy river. [LAUGH]
Never fight in the ocean. Let's fight the Yancy river. It was difficult. It was a lot of fun. And we survived. They got a 90% market share at that time,
today for [UNKNOWN] we're like a 90% market
share and lucky. Just lucky. There are lot of things can be discussed
in the future. Today, people always write about the
successful stories about Alibaba. And I, and I really don't think we are so
smart. We made so many mistakes. We were so stupid that time. So I think Sunday the book I personally
really want to write about is as I said it, isAlibaba 1001 mistakes, these are the
things, [LAUGH] these are the things people should remember,
people should learn. If you want to learn how the people, other
people succeed it is very difficult. There are a lot of lucky things right
there. But if you want to learn, if you learn how
people fail, you will benefit a lot. And I always rely to read those books,
talking about how people fail. Because, look, if you look into it, any
company that fail, the reasons why they fail
almost the same. And that really matters. So, Taobao succeed and then we have the
Alipay because everybody says China oh no credit system banking is terrible
logistics terrible and how can you do e-commerce? I never tell, it was just like today I
come here with no, without a PPT, without t my
business. And I'm not coming here to sell your
business, sell my business because I don't have stock to
sell to you guys. But I think because China is not good at
logistic, not good at credit system, not good at a
banking system. That's why we need entrepreneurship. That's why we go, we should go and build
them up. So, I believe if there is no,you build it up, later this becomes the standard of
China. And I believe China needs that. I remember six years ago I came to the state, I told
the USA audience, I believe five years later China will have
more internet users than the USA. People said no. I said, well you have only 300,000,000
population. China 1.3 billion, right, for you guys to
have 400,000,000 internet users, without anybody dying, people
having babies you'll take 50 years. [LAUGH] We needed five years. It's just the time issues, right. So let's wait and see. Today, we have more users. And today people say, wow, you're buying
capabilities low. Let's see about five years later. Five years later, today people buy, only
spend 200 INB per day, per month. Five years later, these guys will spend
2,000. And we have patience. We are young. You know, I'm old. But my people only 26 average age. They are young. That's way for the future. So [COUGH] all he pay was just a very. That time people say it's stupid escrow
services, right? John wants to buy things from Stephen,
John doesn't want to wire the money, and Steve
does not want to send the product, so we open
an account and say, wire it to us. If you're happy, we wire the money. If you're not happy, return products,
return the money. People say, how stupid the model is
[LAUGH]. Well, we don't care whether it's stupid or not
stupid, we care whether the customer wants it or
not. Whether we really meet the need of the
customers. It is stupid, but after 7 years, we have more than 600,000,000 users registered
users in China using that. So, stupid things, if you improve every
day, is gonna be very smart. And we believe that. So today it is good, and is growing, and
it's like a PayPal, but we are bigger than PayPal
right now transaction wise. And the last and most important, is Ali
cloud computing. And not like the other companies, they
talk about Ali c, they talk about c, cloud
computing. They want to sell you the hardware sell
you the hardwares, the softwares. We have nothing to sell you. We just want to. Computing our own data's because the
data's we have from the SME's because the data's we have the consumers fromTaobao
data's from Ali pay so we want, we believe in the future the world
is going to be the data processing world. How we can share the datas with the
others, in a, in a. In a great way. Right? So, that's the thing, that's the business
about. It's not that, good yet, but it is very
profitable. The whole company, looks healthy, so we
are very appreciate. We are, are the company full of thanks, there's no chance we can win, now we
survive. I think, we always ask our own question,
why we still working so hard? I talk to colleague one day and he said,
Jack, I never know that in my life, I can do that much,
second I never know that the things I'm doing are
that meaningful to the society. And third. I never know that life is damn set hard. We work day and night, even now. We work day and night. I get so thinner, and strange, and [LAUGH]
I understand. Life is not easy. We feel proud. Because we are changing China. It's not how much money you make. When you see, I think, [INAUDIBLE] 10
years ago, when I walk on the street, people thank
me. Because my Alibaba B2B, helped them to get
orders across the ocean. Today, when I walk on the street, the young people say, Jack, thank you very
much. I op-, my wife and I opened a small shop
on Taobao. We make, we made a surviving, we had a
great income and. You know, this is meaningful thing. We make the credit means money. Years ago, if you have a great record of credit, trust, but you're not, you're
not rich. Today if you have a good record on Taubau,
you get rich because people do business with those
people who has good record. We're teaching consumers to smack. People say, Jack I bought something so
cheap on Taubau. Is that a fake product? >> [LAUGH]
>> Yes, we do. Fake products are everywhere but we spend
most of the efforts in China. 50% of the people in Taubau their focusing on checking the intellectual
property issues. But there's a bottle of wine that cost us
only nine dollars that people buying it in the street, it's 300
dollars. Why's that? The channels, the advertisement, the TV
shows. Why consumers should pay that much? So we cut that and we make things changing
so tell the consumers say this T-shirt you buy on TauBau maybe
$30 or $15. You buy in the shop, $150. Not because Taubau is selling cheaper. Because that shop sell too expensive. We should teach the consumers to be smart. And the third, very important. We saw so many factories in China,
especially in Canton. They're not a company. They're not even a factory. They just, oh yeah, they just sell things
they're just a manufacturer. They, they, they don't know who are
selling for them and they don't know who are the
customers. So anything come, they're all in trouble. So we should tell the manufacturers, you
have to contact the consumers yourself. You have to sell yourselves. Serve yourself. Then this is a real business; otherwise,
it's just a workshop. Now we're changing that, and aren't you
proud? And we are honored. It's not about money. Because we believe, we have one million
[UNKNOWN] or one million U.S. Dollars, you are a rich
man. When you have 10 million U.S. Dollars you
are in trouble. You worry about increasing [UNKNOWN] and
you know, you start to invest, you get into trouble. When you have one billion, that's not your
money. It's the societies trust. The, the shareholder. The people believe you can spend this
money smarter than the government. You can spend money than the others. So they give you their trust. How can you do this trust? How can you, you know, treat this trust
well? And I think we are facing this challenge. And the product for Ali Baba is not the
people. It's not the, the service. It's the people, the employees, the
colleagues. The average age of the company is 26 years old, and we are facing so many challenges
guys. I never realized that. One of the key government officers of
another country visited them, they say Jack oh my God, you have 300 million users on Taubau and the population is much bigger than my
country. [SOUND] I said, yeah, it is difficult, any
policy we're making. We get in big trouble. Because people say "this is pretty good." If some people complain, it's just like a
government policy making. And those people who are making policies,
their average age is 26. We have never met this kind of things, if
we change in like a search engine. The normal search engine, you pa-, who
pays better, who looks on the top. We believed we should have put the trust
record, the credible record on that. And then, we put that, lot of people say,
we will demonstrate. 200 people last year came to our company,
demonstrate, say, Jack. You changed the policy, you gotta pay, no. I say, if it is right, let's do it. And, this is the world we're changing. And, now today, what we need is not pure programs, not service people, and
product manager. What we need is sociologists, economist
and those guy who make the principles and the
policies. So we're facing a lot of chal, challenge,
challenges. But we feel proud, because I believe in
the 21st century. If you want to be a successful company,
you have to learn, how to solve a problem of the society, instead
of catching one or two opportunities. It is so easy to catch opportunities, and
it, I'm not bragging, I think today, after 12 years of jumping around, I
find that making money is very simple. But, making sustainable money, and
responsible to the society, improve the world, meanwhile making a lot of
money, is very difficult. And this is what we are trying, and we think China, because of internet, is
improving. And three years later, I'm prepared for
that. Today, people say, ugh. China stock. Internet stock going down. That because of the VIE, because of what,
no. I think look at the US economy. They're facing big challenges. Europe, probably going nowhere. All right? [LAUGH] China. Anything that happens today in the US and Europe is gonna happen in China three
years later. China is a big challenge in three, four
years later. If you know something bad is coming, get
ready for it instead of screaming now. Instead of complaining. And as internet companies, we have to take
a responsibility. And my job. I'm not politician, I'm not speaking for
the government, I speak for myself, for our own business,
speak for my customers. 50 million SMEs and 8 million top of power sellers, how they should survive 3
years later. This is something, I wanna come to the
states, learn how Obama, say I'm gonna create the
jobs. How he did that? Any mistake we should learn from it and
three years later let's solve it our way. This why I'm here. So, I think you all have a lot of
questions and I'm ready to answer any questions you
have because I don't know what, what to talk about
later. Because I'm just here. It's just a free talk right? Thank you very much, any questions you
have? >> People line up the mic on this side. Thanks. Oh, Mr Marr, you brought it up first so
I'm going to make you answer your own questions and
be honest about it. Are you going to buy Yahoo? >> Good question. Yes we are very interested in that. We are very interested in Yahoo. Because our set Ali Baba group was so
important to Yahoo. And Yahoo itself also very very important
to us. To the internet users and to the
industries. So, yeah. We are interested and also all the Pees
and all the serious buyers. They already talked to us, and they, they, they, they should talk to us more. >> Have you made the initial approach to
them about, have you made the initial approach to them
about buying them? >> I just assure that we are very
interested right now. [LAUGH]
>> Thank you. actually, I'm not gonna ask that tough
question. I, I was actually encouraged by Joe this
morning. And, he said that anything about the, CineMode and, I. VIE mode and just ask Jack and help with
the right person answer and okay seriously this is a question that
I know that PRC government has adopted the national
security review system against the MNA Merge and
acquired they are a PRC company by the foreign, By the
foreign companies. So my question is, how do you view the
impact of the the scrutiny by the PRC government and
specifically, do you think that's gonna adversely impact
for the PRC complaint go offshore, I feel like, get financed
from, from, from abroad. >> Okay, yeah. >> So that's my question. >> Probably, I'm sorry for those, I was, I
will answer this question in Chinese. Which, probably more specific, any English translation probably, you know, people can
help. Cuz so many people talk about a VI. I got confused, I spend a lot of time these days understand, what the hell
is that? [LAUGH]
Okay, English, right. Just be fair, English. First, [COUGH] VIE is a great, innovation. And I believe it's a great innovation. 10 years ago, I've seen the model. It's great. It helped China, grow, on the internet,
and all the other high tech industries. Which we Ali Baba also benefit a lot. And I don't see the government is going to
take that thing down. I never feel that and I don't know why
people worry so much about that. But some sensitive areas, some industry,
some sectors, like finance, like, I don't know, what
else. These things the government have concerns
about VI structure which I understand that we
should support. For example. If anybody want to get a bank. Banking license in China are like 20, 20 %
foreign capital owned. If you run across that any nation, we're
against it. So VI structure, I did not see any
government say well I'm going to shut that thing
down. What worry about? We should put these thing on the, on few days ago I read an article about a show
[FOREIGN] right, you know. So? [FOREIGN] [LAUGH] But [FOREIGN] [FOREIGN]
We got make this VIE. Really legal. Transparent. This is the power of internet. Making sure, if it is good after ten
years. Testing, it is good. Why not open? If any tiny sensitive area, that if you're not comfortable, join us, discuss
about that. So I, I don't know. People say, well something wrong with the
Alipay. Oh, I'm honored. Right because of that we open VIE. Cuz, tell the truth, when government, the
PBOC, the main house or how many quests. All EP has foreign capital. I have to tell the truth guys. Do you agree? If the government say do you have foreign
capital? I say, no, but I have. This, this won't work, because we are
getting bigger, right? just today if I come to say I wanna buy a,
I wanna buy the PayPal, do you think the US does
not have any proof? No, they won't, even with Yahoo, right? So we have to be fair it's not that big
issue. It's gestured, it's gestured. Let's face it, open it, discuss it, and I don't see the government is gonna shut
that down. All right? I hope I answered your question. Yeah. [SOUND]. >> Hi Jack. I think we haven't been, seen each other
for more than ten years. >> Oh yeah? >> And you look terrific today. So I'm very happy. >> Thank you. [LAUGH]. >> I believe you went through a lot of
difficult things in past ten years. So, you also mentioned that one day you
will write a book. So my question is would you like to share
just one thing with us first? And you would do differ, differently for
something, one thing. >> Okay. >> Yeah, okay. >> All right, thank you Michelle, right? Michelle Tan. >> Yes. >> We we know, [UNKNOWN] not see for ten
years. yeah, we've gone through a lot of tough
days. If today, when something's smooth, I just
feel uncomfortable. [SOUND] That's, that's true. In the US they call it very paranoid. I am, yeah. But, the mistake we made a lot for Yahoo
China, I think, when we acquire the Yahoo China, if people ask me whether
we would do it again, yes I will. But, whether we would do it in this way,
no I won't. We would do a much better smart way because we had no any experience of
acquisition. Especially acquire an internet company. And we've made a lot of mistakes there,
and that helped us today. So, when you ask me about whether I'm
interested in Yahoo, yes of course. I think we are probably one of the very
few companies really understanding Yahoo, USA
very well, because of that. And people say, whoa Yahoo China is terrible, how could you still talk about
that? I mean, terrible running. No it's not terrible running. We solved problems four years ago, so we
cut the Yahoo China. If we did not we would have died today. So, we would share these mistakes. How we acquired, how we treat the culture
things, how we fire people. We should fire some people earlier, we
should keep some people. You know, these are a lot of detailed
things. I believe any companies in the, in the
future will learn. And, and I think today I'm not talking
about Yahoo USA. But we think about how internet companies
in the USA and in China should learn from
Yahoo. We all face the same challenge. If we do not learn the mistakes the other
people make. So that's, that's, I think, I wanna share
with the mistakes. Thank you. >> Thank you. >> Hi, Jack. I had three quick questions. The first is, Taobao's been incredibly
successful. How do you manage and prevent it from the
being the victim of its own success? How do you stay nimble? You know, eBay itself has sorta stagnated
as it got this large. Second is, given the competitive landscape
of companies like 360Buy, will you be forced to do more on the logistics
side, take title? >> Will be forced to what? >> Forced to build out your own logistics, take title, and therefore that
change model. And last is, I've read a lot of things about your account of what went on with
Alipay. It'd be interesting to hear it, if you
could do, do it over again. What would you have hoped [UNKNOWN] and
Jerry would have said to you. How would have wished that dialog would
have gone as opposed to the way it went. >> Okay, the first Taobao yeah, Taobao
grows so fast. And will grow even faster in the future. Big challenge is we have never grown such
a huge company and I, I don't believe the
internet thunders empire thinking. I hate the empire. Empire thinking means join me or I kill you, and I don't like
that model. I believe the eco system. I'm I'm board member for TNC, The Nature
Conservancy. I believe the everybody should be
connected to each other, help each other it's eco
system. So Taobao becomes so big so fast. And I worry about that I should giving the industry some opportunity give
competitors some opportunities. So in June, we separate Taobao into four
paths because people talk to me they say Jack, you've been
there for nine years. We think it's very different to compete
with you because you are already so big. Okay, I will become smaller so you will
compete. [LAUGH] If ten years later, I"m still bigger than
that. I will put another three pieces, each. Making sure we run big company like a
small company. Giving the people the, the, the, the young
people opportunities to run the business. Because it's their business. Taobao like Facebook, like a Google, like
Tencent, they are not Chinese companies. They do not belong China. They do not belong USA. They belong this time, 21st Century. You have to using a different way to run
this company. Honestly say, what is the best
methodology? What is the best mental thinking to run
that company. I don't know. We are testing, and we already take
mistakes. So, we believe the ecosystem. We do not believe the empire thinking. So, that's why we're testing every way we
could. And, second question is, did leaving the
competition. 365? >> Will you be forced to right change your
model. >> I think they should change their model. >> [LAUGH]. >> It's not about it's not about I don't
feel anything wrong with Taobao model. We are growing, we can make money very
easily. And, we can, we can support more people. So, I don't know if we should change our
model and I don't buy this story about the buy things
and the selling online. This is, this is really stupid model of
the internet, and I don't like that. And logistic things, I tell you, last
year. The total in China packs deliver on the
street is 2.1 billion packages delivered. Taobao created nearly 1.1 billion. And this year, we will probably create 3
billion package delivered on the street. That. We do not want have our own logistic
system. China probably needs 10 million people,
delivering on the street. How can we run a company with 10 million
employees? [LAUGH]. Right, 20,000 people. Today we have, we have 23,000 people. It's already a big headache to me. So 10 million, crazy, nobody can do that. So we should support logistic companies,
to serve well, to deliver well, to treat their well, the
customers well. This is what we wanna do. Not, we do not wanna have our own logistic
companies. Never ever. So we have the money, we have the
inference, we have the orders, how we can improve the
society? This is [INAUDIBLE] Jerry, I think I have
answered that many times, but I can answer you
again. They are good friends, they're good
partners. And, I in understand, in the beginning
said Jack, how could you. That, even today the VAs took for about
it. But I got clear, message you see. Yes, and no. So I told them, I think today they're happy. Now I'm not happy because I'm getting such
a big burden for Alipay, because today Ali be
grow very fast. But it is not a big, nice model yet. You cannot make money out of it, but we
are supposed to pay that much money at the end to the
company. And I challenge is a challenge young guys
let's create a good model for that. So, I think it's a very health discussion
between Jerry, Masa, and us. But unfortunately, the rumor was out that
I'd moved the company out without the board meeting
without notice. I tell the truth. They know and we discussed together, and
today, the problems solved. They're happy. I'm half burnt. [LAUGH]. But it's a challenge.Michelle, I'm placing
a lot of opportun-, you know, tough days. This is one of the tough things I have to
face cuz it's easy other guys, that, wow, you should do
this you should do that. When you know if Alipay die. If Taobao die, if Taobao die, then eight
million power sellers in trouble. And I cannot do that, and if I do not follow China law, I will drink coffee in
Beijing every week. [LAUGH]. Everybody wanted me to sit in there and
drinking coffee, and they say check, where you getting
bigger, you're in trouble. Be transparent. Today, 21st century. Everything should be transparent. Otherwise, why we should work so hard for? So, that's, that's what I'm telling. I think there's no other way where I can
zig around. I just say, this is the reality. We have to face it. I hope we answered your question. Thank you. [SOUND]. Okay. Thanks, thanks very much for a wonderful
speech. My question is how Taobao you [INAUDIBLE] international
collaborations in technology. Cuz I heard Taobao now is still not open
API for foreign countries. I mean, non Chinese countries. So, that means non Chinese countries not
able to launch their products based on Taobao
platform. So I wanna hear your opinion about this. Thanks. >> Okay, I love to. We'd love to open the API for the non
Chinese country, unfortunately its about the payment,. It's very difficult. I, I have, you know, when I travel around,
I see, so, so many oversees Chinese. They say Taobao is wonderful. Can we buy things outside China, sell
things. And a lot of foreign. We are trying our best, and we think that
if the payment problem is solved things could
be moved much faster. And Taobao will never stay alone in China. I said Taobao does not belong to China, it comes from China, it belongs to the whole
world. It belongs to this generation. Let's make sure, in the future it can help more people, because, things really
cool on Taobao. Thank you. >> Thanks so much. >> Hi, Jack actually my question is kinda
similar with hers, but, >> You wanna buy things from here from
Taobao? >> No, but [LAUGH] of course I want to,
right? Cheaper and thank you Taobao you improved
my life. Okay, so, my question is that you have
said there is no difficult business in the world. But the truth is for a lot of foreign companies really difficult to do
business in China. And we have a lot of clients they want to
go to China and actually. Luckily. How about Ali Group can profile the whole
solution for your actually from the high China from
Alipay from everything. But it's hard for them to know, there,
there is a choice and it's hard for them to kind of, crowd the
policy part of government part. So what's you mm, do you have any plan to
help those foreign companies? Because Chinese still has a need for the
foreign products. >> Okay, thank you very much. I think doing business is difficult
anywhere in the world. Foreign companies go to China, find
problems. And I think, and I believe, China's
company come to U.S. doing business, also face some big
problems. I don't see any very successful Chinese
companies in USA. I mean, you know, that we come here in the
USA. Are there any famous Chinese companies
that come to USA or Europe that is very good? >> Always. >> Who? >> Alipay. >> Ali. >> [LAUGH] Not yet, not yet, right. >> Lenovo. >> Lenovo? Do you call that successful? [LAUGH]. All right. My, my thinking was that, in China, we do have some successful foreign
companies, right? Microsoft is not bad. IBM is not bad. And we have a La Oracle and a lot of great
companies. The foreign company in China very
successful. Guys going anywhere doing business takes
time. I think my friend Careb [INAUDIBLE], I, no market welcomes gamblers. You go there, create a value for local
people, have time, it will have chance. So, I believe, that doing business, today. In everywhere in the world is difficult. China is. My wife and I was debating yesterday when
we were driving. She think, oh no, to do business in the
USA because they have a Wal-Mart chain, a Waffle
chain, everything is a chain. Even the coffee is a chain. She said, how can you have a small
business? And I said, wow, in U.S. it's easy for
small business to just to. So, there's a professor sitting next to us
say. We should have a big debate. Which country is easier to business,
U.S.A. or China. And I think, China, today, if you still
think about we should follow the government, you know,
guanxi, forget it. I said again and again, 12, the past 12
years, every time I speak of China. If you meet somebody come to you say, I
have a strong guanxi with that mayor, forget
about this guy. [LAUGH]. >> The only guanxi is, is the guanxi with
the customer. If the customer love you, the government
would bet on they love you. Trust me. They need the tax. The need the jobs. >> [LAUGH]
>> But if you wanna pick around, you know? You're in trouble. So I don't, I don't believe that, cuz my
relationship with the government in the past 12 years as a in love with
them, don't marry them. Always. [LAUGH]. I love them. Every time they come, I tell them the
truth. I do everything they tell me. Yeah, okay. Right, let's communicate. But do business, sorry. My friend does business with government
not me. In this way you get respect from them. If it's that serious about Alipay just
listen to them because it's law it's now
government guanxi. So I give this advice. It's always. Scared, looking far away. Oh my God, this is a difficult place. Go there, test. Jump into it. You never learn to swim until you are in
the water. China is not that bad. [LAUGH]... But, people ask me why China has no, no
Apple. USA have capitalism for more than 200
years, right? That thick fertilizers, people company
die, grow, die grow that's thick fertilizer. China only 30 years after reform
[UNKNOWN]. 30 years have accompanied [UNKNOWN] and
not bad, right? So let's wait for another six, 30 years. We will have them. And that is not China, that belongs to world, because it belongs to Internet
time. Belongs to the young people who were born
1990s. And 1980s. Your 2000s. These are the people going to change the world, and especially most of the students
here. And they are the future. I'll believe that. Thank you. >> Thank you. >> [NOISE]. >> I use the. I used to work at eBay and PayPal, I know
how much challenge you have. Back to 2000 I don't know, do you remember
you have the TV advertisement in Australia that is two
months before Senior Olympic. I have an business trip there. So, at that time, Alibaba just have two
years out, so you have the ambition to have
globalization at that time. So now, after ten, twelve years, right, Alibaba has some more power to have
globalization. What is your future plan for it's the global growing strategy and I think
that's. >> Okay, thank you, yeah [LAUGH] yeah
right, when we have money, we start to make
mistakes. When we have money, we have a beautiful
office, we hire people with MB, MBA degree, we hire
with the VP of multinational companies, and, and when
we have a little bit money, only have five minutes, we
start think about globalization. Jesus! And then, we said let's back to basic B to
C, back to China. [LAUGH] Year 2002 [LAUGH] I remember we
called that time, called it B to C, back to China, back to basics,
back to base. All right, back to Central China. The coast area, back to coast area. [LAUGH] Cuz we, we told ourself global vision,
local win. No matter how wonderful you think you have
to step on the ground, and do the things that hard
work everyday. So, so many years past. Twelve years past, we still believe global
vision, local win, but, we start. We tested in Japan. We tested Indian. We tested European. And, we tested also in for the past 12
year, we never shut down the U.S. office. I'm now coming out, for one year. I want to learn one thing. And I wanted to ask you this thing. To everyone here, here. Fortune 500 CEO's in the world, they all believe China is a big interesting mar
market. But nobody really give up things and come
to China, to spend one year there. Cuz if you really want to know China, you
got to spend some time, and me too, and i'm
asking U.S.A., Europe is gonna be a big market for us, and I
just wanna put down everything, spend time in
U.S.A. for one year. Get feeling, how we can help the U.S.A.
SME. How we can help the U.S., what's the difference we can do between Amazon, Ebay
and us? What's the real value we can create? When you think about that clearly, let's
start to do it. Cuz, we can not have, we never should
finish a 20 year program, in two years. Life is short. Life is long, you cannot say I wanna
finish that in two years. We have time. I'm that old, but I am still young, I am. I have time. [SOUND] Yeah. So, we will go step by step, not asking
about how much revenue we can bring out of China, we will ask, what value, we
really can bring to local people. And we have already more than 15 million small business, outside China,
using our services. And we do not charge them. And freedom, free is always the best. We will, we will work on that. Thank you. >> Thank you. >> Yeah. [SOUND]. >> Jack [FOREIGN]
[LAUGH]. >> [FOREIGN] Thank you. >> [SOUND] I, I just welcomed Jack to the
U.S. and said I hope he can have a good rest while
he's here. So my question for you is, what do you think is the biggest misunderstanding,
that America has about China? And conversely, what do you think is the migget, biggest misunderstanding that
China has about America? [BLANK_AUDIO] >> Honestly I don't know that question
[LAUGH]. I think there are a lot of
misunderstanding but I was thinking about few days ago, writing
something on my whiteboard. Everybody believed that I know the world. I know China cons, incompletely inside
out. No, you don't [UNKNOWN] do now know
[UNKNOWN] do not know, nobody know China. And everybody say, I know U.S.A inside
out, no you don't know. Obama don't know, other wise he would turn
U.S.A out. What? George Bush does not know, it's very
difficult to know the outside, but you know
yourself. What do you need? What do you want? What will you give up? If i know myself better, I can change
myself to meet the outside. There's always misunderstanding between
China and the U.S.A., just like there's always misunderstanding
between Hunan people and Chinese. [SOUND]
Right? Our job is not to solve the
misunderstanding. Our job is to change ourselves. To suit the others. So, I don't know, but, if that's why is,
this is, is a good question. I'm coming here, because I see so many
American company, people finger point at China, and they have never
been to China. A lot of Chinese people can criticize
U.S., they've never been to the States. [BLANK_AUDIO] So, if we do not learn to appreciate each
other, to look at the [INAUDIBLE] and the more I
spend at States, the more I love U.S.A., and the more I
come to China I say wow, you know, it's, it's,
it's communication, it's, so. Political-wise, it's political, it's very
difficult. But there's only one thing that I think, I
would be very happy to do. Business. I don't like online gamings. I think, I believe the best gaming on the
world is to make money. [LAUGH]
Helping small business cross the ocean. Doing business, make them understand each
other. My grandfather know news by reading
newspaper. My father know news by listening to the
radio. Our generation know the world, by watching
TV, our kids know the world by the internet, they say,
I wanna involve. And I believe, this is the time that
screwed up the internet. Anything happen in the U.S.A., we know in
China immediately. Anything happen in China, most of the
things, you know very quickly. [LAUGH]. Well, let's, don't laugh. Let's appreciate, most of the things. Let's appreciate that. Doing things step by step is important,
instead of get everything one night. Thank you. [SOUND] Last one. Yeah. Sorry. >> Jack, you, you mentioned that you spent
some time here, in the early days of Alibaba, and that you were rejected by a lot of venture capitalists who you met
with? But there, there was one investor here in Silicon Valley, who played a big role in
Alibaba's success, which was Jerry Yang, and Yahoo
who invested, I believe, a billion dollars into Alibaba
in 2005. Can you talk about your relationship with
Jerry, how that investment came about, and what
your relationship is like with him now, and how integral that investment has been to Alibaba's
growth and success? >> Okay first, Jerry is a very good friend
of mine, personal friend, lifetime long-term friend, we have
families, also are good friends. And but, it's nothing personal, it's all
about business, right? Yahoo is invested us year 2005. I think it benefited both sides. [BLANK_AUDIO] Without Yahoo U.S. investment. We would not be that succesful today. Because we need, we not need a cash to
solve our problem. We need that cash to solve the venture
capital problem. They do not see Alibaba has a future, they
want a cash out. So they have to put a [INAUDIBLE] not on
the business side, mainly. [COUGH] And without Yahoo deal we would
never learn. How to partner with a big company? What's the big company's problem? How we can improve our own culture and
things? But, in the future, if it was today's
situation we do not change, we will not have a bright
future. We have to do something. So, I think, fairly speaking, we
appreciate yesterday, but we're looking for a better
tomorrow. Every company, should do that. And today, and Jerry, and, you know, we're
still pretty close friends, and we talk, we chat, we
play golf, baby. In the future, the same, and we like, we
like Yahoo. I think this is, Yahoo is the company, at
least one of the three companies, that awaked, waked me up, about internet, and I
appreciate, that all my life. Without internet, there would be not Jack
[UNKNOWN] and there'll be no Alibaba [UNKNOWN] so, that's what my
answer is. Thank you very much. [SOUND]. >> We have time, I think, I think
[UNKNOWN] has a question from [INAUDIBLE]. >> Yeah, it's your, it's your friend
[UNKNOWN]. >> Yes. >> How are you doing? So, two quick questions so, you talked
about, you're interested in buying Yahoo. One, have you visited Yahoo on this trip? And two, how are you gonna buy Yahoo? [LAUGH]. I'm interested in buying Yahoo [CROSSTALK]. >> No, I, I answer my question in a very
honest way. >> Well I hope so. >> First question no. I've been here for 15 days. >> Yeah. >> And most of time sleeping and reading. >> Okay. >> No, I don't have time. Two, I think sleeping's more important now
than. Because there are gonna be tough, long way
to go. >> Okay. >> Second, your question is about
>> How. >> How. We are interested in, getting the whole. >> The whole? >> Yeah. Whole piece. >> The whole Piece. >> Yeah. >> Of your, of your Yahoo China stake, or
the whole piece of all of Yahoo? >> Whole piece of Yahoo. [LAUGH] Yahoo China is already ours,
right? >> Right. >> It's already in my pocket. >> Right [LAUGH] [SOUND] WeIl [SOUND] I
get it, the only thing I gotta say is thank you in all this confusion for the first crystal clear answer about Yahoo,
about the company. I appreciate it, as a reporter. So, when's that gonna happen? [LAUGH]. >> I don't know. Honestly, I don't know, because it's, it's
more complicated than we thought. And there's so many people interested in
that. And we are also talking to them, they are
talking to us. And we think that it's, it's, it's, I was
told it's so difficult, it's not about money issues, it's about politic
issues, inside issue, sport, you know. So, I cross my fingers just to say, we are
very, very interesting then. >> Okay. Perfect. Thanks, Jack. [SOUND]. >> Thank you. [SOUND]
