Margot sangerkatz joins us. Then, the 80th anniversary of Social Security and what the future holds for the program. Later a conversation on the u. S. Also care system. We will also take your phone calls, facebook comments, and tweets. Next, jack ma spoke about his business philosophy, philanthropy, and Global Economic growth. He spoke earlier at the Economic Club in new york. I am so honored. I never expected so many people to come to listen to my talk. I felt so important sitting g there. How many of you have used alibabas services . How many of you have never been to china . Never been to china. Thank you very much. Well, 20 years ago, i came to america. My first trip was to seattle. I learned so much about america. America is not what i learned from the books. In seattle, i found the internet. I came back and told my friends that i am going to open a Company Called internet. I invited 24 of my friends and headed to our discussion, and finally we had a vote. 23 of them against me. Forget about it, there is no such network called the internet. Dont do it. Only one person said, i trust you. I dont know what it is, but if you want to try, try it. I was 30 years old. With not knowing anything about , without knowing anything about business, i started my First Company with my wife and a schoolmate. 1000 to start the business. It was so difficult. I was a blind man writing on the back of blind tigers. Ing on the back of blind tigers. For the first three years, life was really bad. Borrow to bother 3000 from a bank, it took me three years. Said that jack is telling a lie because there is no such network called the internet in 1996. One day, china was connected to the internet from shanghai. I invited 10 friends to my apartment. To show them that i was not telling a lie. There is a network all the internet. We waited three and a half hours to download the first picture. I told him that in 10 years it would work. At least it was true that i was not telling a lie. Help our Small Business to sell online. Nobody wanted to sell because nobody wanted to buy. The first week, we had seven employees and we bought and sold ourselves. The second week, somebody started to buy on our website. Thingstwo rooms full of that we bought. Since 19951999, we go nowhere our business. Nothing was ready. I invited 18 friends of mine to my apartment. We decided to do it again. We called it ellie bala. Com, and ple said why allie bob we used it because its easy to spell and easy to remember. We have so many Small Business and Small Business it is so difficult for them to survive if we can use Internet Technology to help Small Business, it will. E fantastic we should help the small guys to save costs, because Small Business know how to save costs. Business is helping Small Business to make money online. We want to make the company last for 100 years. 102 years. Why 102 years . Because we were born in 1999. 102 will cross three centuries. Dont say were successful no matter how much money we make. Matter how much we achieve. E want to live 102 years we have another 86 years to go. When i heard this club is 100 eight years old, i was surprised and shocked. Today, nobody believe that alibaba could survive. Ipo, they said you are ecommerce, alibaba. We are different. The difference between us and amazon is we do not buy and sell , but we help Small Business to buy and sell. We have 10 million Small Businesses on our site buying and selling every day. We do not deliver our packages ourselves. Than 2 Million People to help us deliver 13 million packages a day. We do not have warehouses, but we manage warehouses for other small and mediumsize companies. We dont have our own inventories. But we do have more than 350 shopon buyers to t every day on our site. Our revenue last year was 390 billion u. S. Dollars. This year, we will be bigger than walmart globally. Managed, that size million 2. 3. 3 Million People. Amazon is a shopping center. You go there and buy things. Future , it the picture you see like this, its different. People are surprised. [laughter] here, ecommerce becomes a lifestyle. Young people use it to exchange i guess, communicate to exchange ideas, communicate. Its a lifestyle. This is how the internet ecommerce is changing china. What we are proud of is not how much we sell. Yes, we are proud. We will sell one trillion u. S. Dollars in five years. This is my goal. We think we will possibly make it. We are proud of that, but we are more proud because we provide 14 million jobs for china. We created the jobs in the countryside. We created jobs for women, over 51 of the power sellers on the internet are women. We can feel proud of that. People say, what next . What is the future . You are everywhere. Sellinghe buying and online is created by our company. Our future is that we have to future to globalize our business. Globalize the infrastructure of ecommerce. Why internet ecommerce . Why it grows faster in china than the usa . The infrastructure of commerce here. Na was not like you have all the shops offline, walmart, kmart, but in china, so ecommerce in the u. S. Is a desert. It is a comment to the main business. In china, it is the main course. We create the infrastructure. If we globalize our infrastructure, the payment, all to sell world rywhere, help glover Global Consumers to buy everywhere. In 10 years, we will help to billion consumers in the world to shop online. Anywhere in the world, you are shopping online and within 72 hours you will receive the product. Anywhere in china, a shop online and you will receive the product within 24 hours. Globalization is focused on helping Small Business. Helping them to do is this in the most efficient way, and we think that we will help another 10 million businesses on our ecommerce platform. Themll empower them, give traffic, give them a Payment System so they can do business anywhere easily and quickly. Have 40 prisons 40 of business outside of china. Today we have only 2 . America . Our play in are you going to come win and invade america . When are you going to compete with amazon or ebay . Shall greatthat we respect for ebay and amazon, but the opportunity and the strategy for us is helping Small Business in america to sell their products to china. , the middle class for china is almost the same as the american population. In 10 years, it will be more than 500 million Chinese People will be middle class. The demand for middleclass, good products, good service, so powerful, so strong, and i think china today cannot afford the good products, good service with the terrible air we have. I dont think china will be able to do that. Focused oneen exporting for the last 20 years. I think the next 20 years that china should be focused on importing, learn to buy, spent the money, by a lot of things globally. Buy a lot of things globally. You should use the internet, go to china. Past 20 years, they companies all over china, but it is the great opportunity for the use of ecommerce for Small Business to go to america. We have helped a lot of American Farmers sell things to china. The American Ambassador to china asked us to sell the cherries in seattle. Farmers took the order, pickup up the cherries, ship them to china. 80,000 farmers, 160,000 tons of cherries, and last year 300 tons of cherries. The year is what about. We also had Alaska Seafood to help sell lobsters. 10 years they cannot sell it. We have a lot of american using our sitees to sell. Soldo, they saved 600 tons of nuts on our site, 6. 5 million dollars. If we can help sell lobsters and haveies, why we cannot these small and media sized companies to china using our system. So this is what i want. They,er 11, the singles we make that a shopping day. Day, we sold that 9. 7 billion u. S. Dollars. Minutes, we had 24 Million People. This year, the number was scary. We need more American Products to china. Hungry 100 Million People coming to buy every day. Come here to compete. We come here to bring the Small Business. In 1020 years, by anywhere, sell anywhere. This is how the internet is. Oing to change the power of changes so powerful. Have a factory and the First World War because of the strength of the arms to the second revolution is the energy, companies, and second world war. Data,ime, internet, the and i think we have a new business called platform. And the third world work is going to happen, and this war is not between nations. This war will Work Together against disease, poverty, climate change, and i believe this is our future, the human being, the nation together. Rely on the young people using computers, data to solve the problems, society problems, and this is what i am passionate about. It is not about the money. It is about the dreams. It is the dreams that you believe that change the world. Today is difficult, and tomorrow is much more difficult, but the day after tomorrow is beautiful. Most peopleli die tomorrow evening. Thank you very much. Thank you very much, jack, for those uplifting remarks. I feel good. We have tom of the new york ,tock exchange and gwen cofounder of silver lake partners. I understand that they are an investor in alibaba. If you have a question, you can email them. Tom, your first question. Good afternoon, jack. Welcome back to new york. It was riveting as usual. You mentioned that your talk is not about money. Societalving a dialogue about income inequality in this country, and people who amass great fortunes can be vilified irrespective whether or not the activities they gazed thatamass those forces fortunes have created a social good. When i think about you, you clearly a master great personal fortune, as well as employees and investors. At the same time, you created directly or indirectly 15 lifted anbs and entire swath of china up and given them a better quality of life. What you say to people who say, jack, youre too wealthy. You have a master to greater fortune . Jack thank you, tom. Myn i graduated in 1988, first job was 10 a month. For three years, and every time i collect the money, i work hard for another month to buy a bicycle. Today, i dont have time to spend the money. If you have less than 1 million, you are the happiest person in the world. Worry,lion, you start to the violation, where to buy stocks in this. [applause] [laughter] believe that you can manage the money better than others. You manage the money for the others. I think the money i have got today is a responsibility, the trust of people. The day when i started the business. I asked my wife if you want your husband to be the richest person or respected of business people. She said, respective business people, because we will never be rich. [laughter] today, i never thought this money belong to me. If i believe this money belong to me, i have a problem. Not last long if i believe this is the money and my pocket, this is the money i ,pend on behalf of the society and i spend it in my way, in our efficient,an do most better than governments, better than other people. To me, it is one of the resources i have. It is a trust i should do better. American business has long complained about counterfeit products in china. You have had your share of that problem. Can you explain to us how you are doing that . Jack ok. When i come here and go to europe, i always have a problem about counterfeit issues. Business model, we do not buy or sell. We help 10 million Small Business. Have one billion product listings on our site. People buy Fake Products on our site. They complain us. Ago, iber three years talked to the minister of commerce in china. He said, lets Work Together and fight against the Fake Products. I say, yes, lets do it. After closing more than 10,000 shops every week, more than 2000 people fulltime working for , andcounterfeit products 5700 people volunteering to do that. Three years ago, over 3000 people came to our office to demonstrate. They are so powerful. Its the war against the criminals. They said everybody got alibaba to demonstrate. They will pay the air ticket fare, pay for the hotel rooms, day if you goery against, because they are the fake product owners. And wrote ary letter to my employees and these guys. I will shut down the company we and this guy opened a funeral for me for four days. Take it will never back. Four years have passed. Over in the real world, 100,000 transactions concerned with counterfeit products. 860,000, only one complaint. One . Why . I got a lot of personal threats. It is the war, a very lonely war. I feel upset. We have to fight it together. There are three things that counterfeit,ncer, intellectual property, and the credit system. It will destroy our business. I promise that we would do anything against it to china was not the owner because a lot of people produce and sell. Today, more and more Chinese Companies care about the brand, care about internet properties. It is so that difficult to solve the problem. Today, we have the most unique technologies and we want to work here with you guys, american and european brands. Lets Work Together and fight against them. Thats working together. I got a lot of Death Threats from these guys. The police do not understand this. They have to report that somebody is filing selling they went inside realize they were wrong. So this is the war. We are getting somewhere. I have the confidence with the internet and young people and the commitment and with your support and help, we will win the war. Jack, you have expertly navigated the political situation in china as well as chinau. S. Political tension over the years. As you look out over the next 510 years, what are your concerns with respect to either the political situation within china or the relationship between china and the u. S. . Run, iell, in the long am pretty confident with the relationship. Remember the u. S. Ambassador to china. He asked me what i think about chinau. S. Relations . How many people know about the . Hinese religions religion is christian. You have to find a competitor, good or not. Chinese religion, the buddhism is that human insight how to understand your heart, how to make your heart big enough to embrace others. How to commune with nature. Confucius is how to work in society in a disciplined way. We dont need to have a competitor. Your competitor is yourself. That is our philosophy. If china sticks to its own philosophy and religion, we will have no problem at all. U. S. And china should Work Together and find some things that we can fight together, the cancer, the disease, the poverty, and the air, the climate change. If we are working the projects on that together, u. S. And china other companies will follow. Well. K i know america so when i came, not the what i learned from the books. You go to china a lot. You know that china is not what you think. Manytunately, i saw so chinese experts here that only go once a year or less than that. They become the experts. Now in the world, among the top of courset companies, we can do better. The communication. Communication, make the young people understand each other. This can make the world better. I am not a push not a politician. I speak like businesspeople. I understand my customer. I understand my competitor. The Business World is not the other people. You win. Even if the other people die, you may not win. You should learn to work with your competitor, learn from the competitor, focusing on the customer, focus on the future, focus on the on people. This is what i believe all time. Politics, it may be the same. I dont know. Moderator hugh described in your remarks how different your company is from ebay and how uniquely designed it is or was for success in china. As an investor in the company, many people complain to me that the Chinese Government does not allow u. S. Participants to be successful in Chinese Markets a cousin it is not a level playing field. How do you address that concern . Well, first, there are a lot of successful American Companies in china. We do not see a lot of successful Chinese Companies in america. Business, you all have the patience. You will have to prepare for the future. Oracle, they are in china because they have been there for 10, 15 years. Internet, if you want to conquer china, if you want to win china, internet is the speed. If you want to win china or when the market by speed, you will never win. You have to think about in 10 or 20 years, how can i make china different . How can i make the Company Better . How can i make customers better . Free is not a Business Model third i agree. Can go back toy china. If we lose, we can go nowhere. We have to create unique value for china users. I think, yes, there are still some problems between china government and maybe some usa business. There are also problems with China Companies and the u. S. Government. If you think about 10 to 15 if you think about a blind tiger, intended 20 years, suffered everything, made mistakes, change yourself, business will come. I have confidence with that. Bet a lot0 years, i of u. S. Companies will be successful in china because you cannot stop it. You cannot stop internet. Only stop it with people using the internet th