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US puts Alibaba's Taobao on blacklist again for selling fakes online

Trade tension between US and China is increasing as China's economy continues to grow quickly

Selina Wang | Bloomberg 

Jack Ma
Alibaba Group Executive Chairman Jack Ma. Photo: Reuters

Group cited again as a marketplace for fakes on a blacklist, another sign of increasing tension between the and

The Office of the Trade Representative on Friday included Alibaba’s online marketplace on its list of “Notorious Markets,” citing a high volume of reported counterfeiting and piracy. The agency acknowledged steps has taken to make it easier for fakes to be removed, but said “the enforcement programme reportedly continues to be burdensome and insufficient to end the sale of counterfeit products on the platform.”

In response, Alibaba’s President Mike Evans said in a blog post that the company’s presence on the list “is not an accurate representation of Alibaba’s results in protecting brands and IP, and we have no other choice but to conclude that this is a deeply flawed, biased and politicised process.”

Trade tension between the and is increasing as China’s economy continues to grow quickly and its expand overseas. Chinese acquisitions of have been thwarted by lawmakers recently. Ant Financial, the Chinese financial services giant controlled by co-founder Jack Ma, failed to win approval from a key government panel for its plan to buy MoneyGram

The decision by the USTR is a blow to Alibaba’s expansion strategy, which depends on winning the trust of and global brands. dominates e-commerce in China, with and the company’s other shopping platforms accounting for the majority of online retail sales, but it’s a bit player in the still.

said more than 230,000 stores were closed from September 2016 to August 2017. The company has also provided leads to law enforcement that resulted in more than 1,000 arrests and the closing of nearly 1,000 manufacturing and distribution locations.


First Published: Sun, January 14 2018. 01:12 IST