China’s Premier Li Keqiang has praised Jack Ma, founder and chairman of Alibaba, the country’s largest e-commerce company, and advocated reforms for a consumption-driven new economy.
In a conference in Beijing last week, the Premier endorsed Alibaba and other online stores for driving massive consumption, according to the official media Xinhua News Agency.
Ten speakers, including six experts in macro economy, finance, property, external economy and four entrepreneurs were invited to attend the conference.
Ma and Li Shufu, chairman of automobile manufacture Geely Group, represented their companies.
“You have created a consumption peak season”, said Premier Li, after Ma introduced an online sales campaign at Alibaba on November 11, traditionally a holiday in the country.
The holiday was initiated in the 1990s by university students but was recast by Alibaba sites as a day for launching sales. The move caught on and, during the last few years, most e-commerce companies run online promotions to attract young consumers, making it a Chinese “Black Friday”.
Total sales on the day last year amounted to Rmb20 billion, Ma told the Premier and the size may be as much as Rmb30 billion this year, he said.
During the conversation with Ma, the Premier said more effort was needed to help the “new economy”, which is what China needs to confront its economic slowdown.
The Premier’s appraisal of Alibaba and the new economy shows Beijing’s determination in pushing ahead reforms to sustain economic growth, as well as restructure the economy.
“China’s reforms have come to the ‘deep water’ zone. It will effect vested interests”, said the Premier. “(But) we must forge ahead without hesitation.”
Ma was recently involved in a heated debate about Alibaba’s IPO plan to raise up to $15 billion, based on the company’s estimated valuation of as much as $115 billion.
