Alibaba: Always Trump
Despite positive news from the company itself, Alibaba's shares lost more than ten percent on Monday. The trigger for the sharp drop was US President Donald Trump, who once again announced restrictions on Chinese companies, thus leaving plenty of room for interpretation.
Alibaba announced on Monday that it intends to invest the equivalent of 53 billion dollars in the expansion of its cloud and AI infrastructure over the next three years. What is fundamentally seen as positive for the company's operational development was, however, lost on the market due to a new decree from Trump.
The US President instructed the Committee on Foreign Investment in the US to restrict Chinese investments in technology and strategic sectors over the weekend. The timing of the decree seems anything but coincidental given Alibaba's announced investments.
There is therefore plenty of room for speculation that the US has realised that it is no longer miles ahead in the AI race, but at most just a step or even just a nose ahead.
What will be particularly interesting now is whether and, if so, how China reacts to the US measure. If there is a response, it will most likely not be for another two weeks. The National People's Congress will meet on March 5, during which further political action is typically decided and announced.
Alibaba's share price fell sharply on Monday. But after the steep rally in recent weeks, a setback was long overdue. DER AKTIONÄR is therefore sticking to its buy recommendation. Those who prefer a more speculative approach can add the AI gem recommended in the "Better than DeepSeek" share report to their portfolio. Although the stock has already started to run, there is still at least 170 percent left by the end of the year.
Its huge infrastructure projects now stretch from the seabed to space and from the megacities of Africa to rural America. China is in the process of connecting the world and reshaping the global order. The battle for the future has begun and requires America and its allies not to allow China to gain more territory without control. Democracies cannot afford to lose this competition. China expert Jonathan Hillman takes readers on a global journey to the newly emerging areas of conflict, shows what China's digital footprint looks like on the ground, and explores the dangers of a world in which all routers lead to Beijing.
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