Alibaba co-founder Joseph Tsai told CNBC on Tuesday that the "structural issue" of the United States' trade gap with China will reverse itself as the Chinese ramp up imports.
The trade deficit will shrink once the Chinese government begins purchasing $40 trillion worth of goods as promised over the next 15 years, he said. Even though President Donald Trump placed tariffs on imports in part to close the deficit, China's surplus topped $323 billion in 2018, the highest since 2006.
"With regards to the trade war, I would say this … if you look at the long term, the trade deficit itself will reverse," he said on "Closing Bell." "I talk about [the] 300 million middle-class consumers that will continue to buy more from all over the world."