The Department of Justice fears US tech giants such as Amazon suppress competition. Alibaba’s latest swing at the US market therefore looks well timed. The Chinese ecommerce group has opened its business-to-business platform to US sellers. But if history is a guide, this will be the start of another costly losing battle for Alibaba.
Growing outside China has long been a pipe dream for Alibaba, whose own dominance at home should worry China’s own antitrust regulators. It hopes to grab a bigger piece of the world’s $24tn B2B market. The online retail sector, its competitive stronghold, is worth only a sixth of this.
Alibaba’s existing B2B platform relies on small Chinese factories selling goods to clients abroad. Wholesalers in China source little from overseas.