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>The majority (about 90%) of Alibaba's sales are domestic (Chinese)

But how many of those domestic customers get their own paycheck from exports? China is moving towards a more domestic-focused economy, but exports are still a big deal for them.




I'm not current on the statistics but my understanding was that at the moment there is a flow of real goods (and services?) from China to America.

If that assumption is reasonable, it is difficult to describe a situation in China where the customers get worse off due to reduced exports without the leadership going crazy (like shutting down all their factories and everyone sitting at home sulking instead of selling their goods locally at a discount). If they pretend the American dollar is the be-all-and-end-all they will get into trouble, but it is hard to see why they would do that.

I'd speculate the situation would be OK for any shareholders in China, where any on-paper drops would be countered by improved real access to stuff, and probably bad for shareholders in America where on paper drops may as well be real. Of course, real life is so complicated it is who can even guess?


Did you try reading the above linked NASDAQ link?

Total overall revenues:

Alibaba reported revenues of RMB80.9 billion (US$12.23 billion), up 61% from the prior-year quarter. Also, revenues came in slightly above the Zacks Consensus Estimate of US$12.25 billion.

Total revenues related to selling exports:

· International commerce retail business (6% of the total revenues) - Revenues in the quarter were RMB4.3 billion (US$652 million), increasing 64% year over year. The increase was driven by robust GMV growth in two marketplaces, namely Lazada and AliExpress.

· International commerce wholesale business (2% of the total revenues) - This business generated revenues of RMB1.8 billion (US$278 million), increasing 14% from the prior-year quarter. The growth was due to an increase in the number of paying members on alibaba.com platform.

So a total of 8% of total revenues were due to selling exports. Plus, it's not clear how much of that revenue is from Lazada, which is not subject to US tariffs because its target market is Southeast Asia. If anything, everyone is suffering from US tariffs, so Lazada can only grow because it's a trade relationship that doesn't depend on the US.


I think you misunderstood what they were saying... That it's possible the domestic customers that make up the majority of Alibaba revenue may decrease their spending on the platform if their own incomes rely on exports.


Yup completely misread and misunderstood, my bad. :)


as a chinese, we barely rely on export as you may already aware of. domestic economy doesn't change even a bit during trade war. simply because we are LARGE in many perpective. the cost of renting the house or buy one are on a up-hill. you may felt we should be affected, but the fact is that we use your tech(computer engineering) and change our life without much expense of research and development.


Everyone hurts from a trade war. As an American, you should know we have seen so much boasting lately that it sounds like the noise of young children.


i work in engineering and math so my eco-knowledge is limited. yes it seems we need to boast to keep economy grows and that's what domestic gov do. i am in age 22 and i was in euro 2 years ago, i been to shanghai, hang zhou, and if i may i could judge we haven't been really hurt. personally when i was little i can't afford whole day air-conditioner open, and i so couldn't i drive to anywhere far, but these days my family economy status didn't improve considerablely but appreantly they are cheap




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