>> 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