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Galbadrakh Tsevegjav
Bruce Schragin
MGMT 56025-31
June 4, 2015
Alibaba, the Golden Child of China's Globalization Strategy
On September 19, the Chinese Internet e-commerce firm Alibaba officially debuted on the New
York Stock Exchange, raising a record $25 billion. Alibaba's initial public offering is the world's
largest, exceeding Facebook, Google, and all previous Internet IPOs. Alibaba rises to the apex of
international markets, in large part because of deliberate state-building efforts and ingenious
utilization of foreign capital. This has happened before with the Agricultural Industrial Bank of
China and the Industrial Commercial Bank of China, along with Alibaba the top three IPOs in
history, and others, such as the China Mobile and PetroChina, to name a few.
China's highly touted market reforms introduced an initial period of competition, but
soon thereafter were followed by rules and regulations favoring domestic companies or
restrictions on foreign direct investment (FDI). These measures are entirely to ensure their
market foothold, promote indigenous technology, and incubate Chinese business in fledging
industrial sectors. Today China represents one of the world's most wired developing countries
and the largest Internet and mobile communications markets. Yet private and foreign competitors
are barred from entering telecommunications basic services, despite commitments to the World
Trade Organization to allow up to 49 percent FDI in basic services.
With the world increasingly and economically beholden to China and Chinese business,
China's globalization strategy has won dividends at home and abroad. How has this relationship
already affected global reception toward China as the government exercises its economic and

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political might to achieve territorial ambitions in the North and South China Seas? The multiweek student movement in Taiwan earlier this year against a trade in services agreement between
China and Taiwan represents what the Taiwanese call China's attempt to displace the Taiwanese
economy and force political unification. China's distinctive economic globalization undoubtedly
influences the world's response to the ongoing street protests in Hong Kong concerning China's
backtracking on its commitment toward the "one country, two systems" model of political
governance.
In conclusion, Alibaba.com can be considered as fastest growing e-commerce company
in the world because of explosion of IPO in US market. The reason why Alibaba.com reached
that success could be connecting Chinese suppliers to customers in all around the world. In
addition, Chinese suppliers are known as cheapest are fast although their quality is not always
good, but Alibaba.com handled that issue by placing payment in the middle account of suppliers
and buyers, also transaction will be made when buyers satisfied with the products. Another
noticeable thing is supply chain management. Therefore, they are now considering to deliver
products efficiently around the world despite the fact that they implemented most popular ecommerce system between supplier and buyers. If they build most effective supply chain
management for their customers, it could affect world globalization as positive. The main idea is
anyone will be able to do business around the world, Alibaba.com is providing a chance to find
suitable products and potential buyers. Finally, Alibaba is trying to change the world by
connecting demands with supplies in international market.

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Work cited
Hsueh, Roselyn. "Alibaba, the Golden Child of China's Globalization Strategy." The Huffington
Post. TheHuffingtonPost.com, 15 Dec. 2014. Web. 04 June 2015.