In the U.S., it’s as high as 5%. And if you look at the proportion of cloud within IT spending numbers, it’s 15% in China today, 21% in the United States. These are figures from . So I think that those 2 figures represent a huge opportunity for us in China. And of course, as technology continues to develop a new cutting-edge technologies like generative AI come to the fore but also VR, virtual reality, which we’ve discussed before. All of these technologies as they’re deployed are when they require massive compute power to support them. So we expect to see exponential growth in demand for compute power. So for us, as a cloud vendor, I think that story is purely just getting started. And of course, these are not just trends in China but for the world, and we intend to take our offering to the world.
We’re already the leader in China when it comes to consumption and to cloud computing and 1 of the leaders in the world, and we will continue unshakably to be committed to and to pursue those core 3 strategies that we’ve adopted while continuing to embrace new technologies and make technological breakthroughs in order to create new and more exciting prospects for Alibaba as a company. And then moving on to your second question about new technologies and developments in the market. And of course, there are always new market developments on a daily basis. But as I said, Alibaba has identified progress as our keyword as our overarching theme for 2023. We’ll be seeking progress in technology in our business and also in the ways that we create user value.
We will be investing, therefore, to drive progress in new technology and to integrate new technology with business to create new value and new kinds of business with tremendous prospects going into the future. And in fact, that’s what Alibaba has always done over the past 20 years. We haven’t been a low-price competitor. We haven’t been relying on heavy subsidies. We haven’t been engaged in low-quality low-level competition. Rather, we’ve always invested in technology in the belief that technology can make the impossible become possible, and that could also make a business that had been impossible also become possible. So we will continue to seek and drive new technology breakthroughs to open up new frontiers in commerce and in business.
Operator: The next question is from Ronald Keung from Goldman Sachs.
Ronald Keung: We know that in 2022, a major theme for Alibaba was optimizing the cost structure and driving operational efficiencies. Going into 2023, as we’ve talked about, we can expect to see a pickup in the macroeconomic situation, potentially hopefully leading to GMV turning positive GMV growth turning positive again. I’m wondering when you expect to see that happening. At what point can we expect to see positive growth returning in the GDP GMV numbers. And also, how are we going to achieve balance between growth and investment in this new year because we know there are people who are engaging in a lot of subsidization behavior. So how are we on going to achieve that balance between growth and investment?
Toby Xu: Well, starting with the part of your question that had to do with the pickup in consumption that we’ve seen following the end of COVID measures in China. Obviously, we’re following that situation very closely, just like all of you, just like everybody else. But in my script earlier, I did lay out a detailed and comprehensive picture as I could. January certainly was still a challenging time through the spring festival, especially with people traveling widely in large numbers across the country. Life and work, however, began to normalize around the time of the Lantern festival and thereafter with improvement in consumption sentiment, indeed, as expressed in consumption behavior. And I also shared with you the impact that, that had in different categories, including apparel, sports, outdoor and health.
