Jack Ma at the Eastern Economic Forum in Vladivostok.
Alibaba Chairman Jack Ma said Wednesday that the Chinese e-commerce giant had canceled plans to create 1 million jobs in the us, blaming the ongoing trade war for the decision, according to Chinese news agency Xinhua.
"The promise was made based on China and the U.S. having a collaborative and friendly relationship", he said in the Xinhua interview.
"Trade is not a weapon and can not be used for wars", he added, in an exclusive interview with Xinhua news agency. "Trade should be the propeller of peace".
On Wednesday Ma told Xinhua, a Chinese news site, "The current situation has already destroyed the original premise".
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Shares in Alibaba closed 3.5 per cent lower on Monday. Instead, Ma talked about stimulating trade by helping American small businesses sell their products to consumers in China and elsewhere in Asia.
But the trade dispute between the world's top two economies has swiftly escalated since Mr Trump took office, with a series of tit-for-tat tariffs brought on billions of dollars' worth of goods by both countries.
Ma, who recently announced his departure as the chairman of the Chinese retail giant next year, slammed Trump's policies just two days after Washington announced a 10 percent tariff on another $200 billion worth of Chinese goods.
Mr Ma pointed to business opportunities in other regions such as Europe, South America, Russia and Africa, Xinhua said. He also acknowledged that the ongoing trade war with China's largest trade partner is hurting Alibaba's business, according to CNNMoney.
The Chinese firm said the new subsidiary would make customised AI chips and embedded processors to support the firm's push into fast growing cloud and internet of things (IoT) businesses.