Tech executive urges Asian firms to expand in regions other than the US

Alibaba Group Holding Ltd. Chairperson Joseph Tsai urged Asian firms to explore opportunities within the region and in Europe as US-China tensions continue to linger.

At a tech conference in Macau on Saturday, Tsai hinted at criticism of the Trump administration’s trade policies, saying “some governments try to tear down this bridge that we have built between Asia and the rest of the world.”

He encouraged business ties among East Asian nations, Southeast Asia, and, eventually, South Asia, and described Europe as “an incredible opportunity” for companies based in Asia.

Alibaba’s main operations have felt the impact of the drawn-out standoff between Washington and Beijing. Shares of the Hangzhou-based e-commerce giant dipped this week after The New York Times reported that the Trump administration had voiced concerns over a possible AI partnership between Apple Inc. and Alibaba.

While Apple has not publicly addressed such an alliance, Tsai confirmed earlier this year that the companies were in talks. He stopped short of saying whether Alibaba would serve as Apple’s exclusive AI provider in China.

A local collaborator could help boost iPhone sales in China, where Apple has fallen behind rivals like Huawei Technologies Co. in rolling out AI-enabled handsets. Regulations in China prevent Apple from offering its full range of AI features without teaming up with an accredited domestic partner.

Alibaba’s e-commerce business is affected by the closure of a tariff loophole

Alibaba’s e-commerce has also been hurt by a recent decision by the US that shut a tariff loophole for small parcels sent from mainland China and Hong Kong. That move, part of the US government’s broader trade measures, has added pressure to the company’s bottom line.

Last week’s disappointing earnings sent Alibaba’s shares tumbling by their largest margin in over a month. Investors are growing cautious about the company’s ability to weather China’s ongoing economic slowdown and to leverage its position in the AI race sparked by the launch of models like DeepSeek.

Nevertheless, Tsai defended Alibaba’s direction on Saturday, saying the firm was on “a very good path” and emphasizing its continued focus on e-commerce and artificial intelligence.

Since taking charge in 2023, Tsai and Chief Executive Officer Eddie Wu have steered Alibaba through a period of intense regulatory scrutiny. They have prioritized investments in AI and core retail operations while divesting non-essential assets to fund continued growth and global expansion.

Alibaba has been busy rolling out AI offerings this year, aiming to keep pace with international rivals. Just last month, the company unveiled its Qwen3 flagship model, which it claims matches or exceeds DeepSeek’s performance on several benchmarks.

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