Amazon has opened up a digital storefront on Tmall, which is an online marketplace owned by Alibaba, an online retailing giant with a large presence in China. Amazon has been trying for many years to expand into China; ironically, Amazon is now using its rival Alibaba as a way to enter China’s economy. According to CNN Money, “Most of the merchandise on Tmall is made by Chinese manufacturers, so Amazon has a good opportunity to offer goods that Chinese customers may not have access to.” Alibaba also plans to extend its reach into the US economy, which is more open to collaborating with foreign companies than the Chinese government. When the company went public in the US last year, the IPO was $25 billion.
Contributor: Ashni Nadgauda