Digitisation will bring fundamental economic change and China can set an example, says Alibaba’s CEO

The digital economy has the power to bring “fundamental change” to how economies and businesses operate, according to Daniel Zhang Yong, chief executive of e-commerce giant Alibaba Group Holding.

“Generally speaking, China’s infrastructure was not ready … so when the digital economy came along there was an opportunity to rebuild the infrastructure based on the most advanced technology, and apply this infrastructure in all business areas,” Zhang said at a two-day conference hosted by the Luohan Academy in Hangzhou on Tuesday.

Alibaba’s e-commerce platforms not only connect buyers and sellers, but also touch upon various parties in the value chain that include production, distribution and sales, in which new job opportunities are created, he added.

“There are many people behind a web store and that’s the segregation of responsibilities. That’s how the economy developed in the past 2,000 years and it also applies in the new digital world. The segregation of responsibility has created new roles,” Zhang said, citing live-streamers who promote and sell products during live-broadcasts.

He stressed the need to include all participants in the rule-making process. “At Alibaba, I always tell my team that we are not the owner of the platform. We operate the platform but we are one party, one participant in the platform … Together with our buyers, sellers and service providers, we form this ecosystem.”

The inclusion of digital have-nots and smaller players as key participants in the process were some of the major topics discussed at the conference, which brought together a variety of experts to discuss the future of the digital economy. The academy asked the scholars to ponder 10 key issues when it came to the future of the digital economy, including inclusive growth opportunities, job losses and job creation, international economic cooperation and ethics.