Alibaba at the seams: Intermediating territoriality in China and Southeast Asia

Abstract

Digital platforms are often conceptualized as incompatible with the global system of nation-states: that in order to realize their value, they must disrupt the existing territorial order. Here we argue that to the contrary, the strategic management of state territoriality has been a key site of platform intermediation. Alibaba emerged as the hegemonic digital finance player in China by taking advantage of transnational capital’s difficulty in accessing the Chinese market; now, in Southeast Asia, it positions itself to capture value from growing cross-border flows. In developing this analysis, this cross-cutting study draws on theories of platform capital and digital geopolitics to conceptualize “seams” as a site of value capture, in a shared theoretical register with the multi-sided markets they are traditionally understood to mediate. Most significantly, Alibaba utilizes its broad footprint in Southeast Asia to produce new “seamless” linkages within and beyond the region—links wherein Alibaba controls the intermediating platform. This study contributes to the understanding of Alibaba’s global presence by analyzing the strategic use made of “seams” produced by the intersection of digital commerce and state territoriality. As platforms navigate an increasingly geopoliticized global landscape, concepts such as seams usefully highlight how territorial, regulatory, and cultural boundaries are both a hindrance and a source of value for platform capital.