Jack Ma

Chairman of the Alibaba Group

I. General picture of E-commerce development and developing trends in China

1.The building of an e-commerce ecosystem is the basis of industry development

To a large extent the future development of the Internet will be decided by e-commerce. The future of e-commerce depends on the improvement of e-commerce services. The core of e-commerce service is the e-commerce platform. Building e-commerce infrastructure and a business ecosystem around e-commerce platforms has become the focus of China's e-commerce development and will continue to be so in the years ahead.

2. E-commerce has large development space in China

E-commerce has more room for development and adoption in China than in developed countries, because transaction efficiency has traditionally been low in the Chinese economy, the country's industry structure is clustered and SMEs are highly concentrated, while new entrepreneurs keep emerging and the consumption structure continues to be upgraded.

At present, China is leading the world in e-commerce mode innovations and e-commerce ecosystem development.

II. Assisting SMEs and entrepreneurs with e-commerce

1. SMEs and entrepreneurs create huge social benefits by using e-commerce

From statistics of e-commerce input-output ratios, the survival rate of SMEs and the direct and indirect employment opportunities created by C2C, we can see that SMEs and entrepreneurs have developed fast and accumulated precious experience by using e-commerce over the past few years.

2. E-commerce platforms fully support SMEs and entrepreneurs with innovation

E-commerce service providers, like Alibaba, are now exploring the depth and scope of e-commerce service, in order to provide all-directional services to SMEs and entrepreneurs. In terms of the depth of service, Alisoft provides transaction management software to enable SMEs to lower their costs. At the same time Alibaba. com has developed new SME loans based on online transaction credibility. To provide a scope of services, Alibaba has worked in cooperation with credit, authentication, consulting, marketing, exhibition, legal, technical and other working partners. Alibaba's aim can be summed up as: continuing to lower the threshold of entering the e-commerce realm, as well as the trade and innovation threshold, so as to greatly reduce transaction costs and synergetic costs, to expand business freedom, to promote the entrepreneurial spirit and integrity of online culture, and to support the new generation of e-businessmen.

III. The Internet industry should shoulder more social responsibility

1. Recognize the pressure SMEs are facing in current economic environment

SMEs are facing more development difficulties than before, because of global financial turbulence, increases in raw material prices and other factors. E-commerce is considered a good way to help SMEs out of the financial crisis, because of its low cost, high efficiency, and strong market penetration. Recognizing the importance of these characteristics of e-commerce, Alibaba has been providing high-quality services to e-businessmen from various aspects.

2. Alibaba Group to take more social responsibility

At the end of 2007, the Alibaba Group issued the first CSR report in China's Internet industry. The report showed Alibaba's cognition of social responsibility and projected its action in this regard. Today, Alibaba is doing its best to create more employment opportunities and help vulnerable groups.

Thanks.

(China.org.cn November 7, 2008)