Chinese e-commerce giant Alibaba Group Holding no longer plans to create 1 million jobs in the United States amid the intensified trade war between China and the U.S., according to company co-founder and executive chairman Jack Ma Yun.
"The promise was made on the premise of friendly US-China partnership and rational trade relations", Ma said. "The situation now has completely destroyed our premise, so it can no longer be completed".
Jack Ma had said a lot of businesses in China and the United States will be in trouble in the short term.
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Amazon has been quite cautious in its roll-out of Amazon Go stores that replace the cashier with a smartphone app. Shoppers rate location and a lack of lines as the most important factors when shopping for convenience, he said.
"China has been forced to take retaliatory measures, and they are entirely meant to protect China's own interests", commerce ministry spokesman Gao Feng said at a weekly news briefing in Beijing.
While Ma had not detailed how he would add those jobs, he has said that he wanted to encourage American small businesses to sell on Alibaba marketplace Tmall and Taobao, reasoning that every new business that joined the platform would have to hire a person to manage the extra sales. Ma originally said he would leave the position last week, and then seemingly contradicted on-the-record statements to the New York Times a few days later. "But if there is no trade between China, the 1 million jobs will be gone too". "There is no way to deliver the promise", he said.
The vague promise wasn't based on Alibaba investing in the United States to build factories or fulfillment centers. Ma suggested on Tuesday that in the medium term, production and supply chain elements for Chinese business be shifted to other countries rather than the US.
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The project ran for more than 10 years but was suspended in 2016 after North Korea carried out its fourth nuclear test. The North Korean leader emerged from the airport building to raucous cheering and walked up to President Moon Jae-in.
"The U.S. like competition, China likes harmony, they're two different cultures", Ma said at an investor conference in Shanghai on Tuesday.
The 10 percent tariff is to be implemented by September 24, which will increase to 25 percent by the end of the year. Earlier on Tuesday, China had retaliated by slapping tariffs on Dollars 60 billion of American products and its state council announced that the new tariffs would be imposed at rates of 5% or 10%, depending upon the product from the same date.
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That would raise the total affected by US penalties to $517 billion - covering almost everything China sells the United States. As a free market democracy, the United States does not have the same kind of ability to manipulate its economy.