US-China trade war could last 20 years: Jack Ma

Alibaba founder Jack Ma has warned investors that the escalating trade dispute between the US and China could become a prolonged confrontation lasting as long as two decades, urging businesses to prepare for a difficult period ahead.

Speaking at Alibaba's annual investor conference on Tuesday, Ma said the trade war would not be resolved quickly and could continue for "maybe 20 years", shortly after the US administration announced a fresh round of tariffs on Chinese imports worth $200 billion.

"It's going to last long, it's going to be a mess," Ma said, highlighting the potential long-term economic consequences of the dispute between the world's two largest economies.

His assessment suggests that tensions could persist well beyond the current US administration, potentially affecting global trade and investment patterns for years even after President Donald Trump's term in office ends.

Ma acknowledged that the trade tensions were already affecting Alibaba's business. The company's shares closed 3.5 per cent lower on Monday and had fallen around 25 per cent from their record high reached in June.

The billionaire said businesses in both China and the US could face difficulties in the short term as tariffs and uncertainty disrupt supply chains and raise costs. He predicted that Chinese companies would eventually have to expand into other international markets to reduce their dependence on the US.

While describing the trade dispute as being directed against China, Ma also urged Chinese policymakers to use the situation as an opportunity to accelerate economic reforms and make the country's markets more open.

"China must open the market," he said, arguing that greater openness could help Chinese businesses adapt to changing global economic conditions.

Ma also sought to reassure investors about Alibaba's future following his recent decision to step down from the company. He announced last week that he would retire as executive chairman in September next year and hand over leadership to current CEO Daniel Zhang.

Ma expressed confidence in Zhang's ability to lead the company, saying he was certain his successor would perform better than he had.

The 54-year-old former teacher also said he remained enthusiastic about beginning a new chapter in his career, with education likely to be a major focus.

"I'm not sad at all. I think I'm still young," Ma said, suggesting that while he may be considered old within Alibaba, he sees considerable opportunities ahead in his broader career.

His remarks come at a critical time for Alibaba and other Chinese companies, as the prolonged trade dispute threatens to reshape global supply chains and could encourage businesses to diversify production and markets away from the US and China.