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Taiwan: Alibaba is Chinese company and should leave

Staff writer |
Taiwan's Investment Commission has ordered e-commerce firm Alibaba Group to withdraw from the nation's market due to its Chinese ownership.

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This comes after the government found that the company registered its Taiwan branch as a Singaporean entity rather than a Chinese one.

Due to its management structure that maintains Chinese control, Alibaba cannot be considered as a non-Chinese firm, although it is listed in New York and has foreign shareholders.

The company's management structure with Chinese control gives the power to nominate majority of its directors to a small group of Chinese managers.

The Taiwan government has asked Alibaba.com Singapore E-commerce Private Limited to resubmit its application to operate in the country within six months or leave, reports South China Morning Post.

Taiwan Ministry spokesman was quoted by the publication as saying: "Alibaba applied as a non-mainland, Singaporean company to operate in Taiwan in 2008, but since listing in the United States in September, we have a different view about the company's status."

Alibaba will pay around NT$120,000 ($3,800) in fine for violating Taiwan's investment laws for mainland firms.


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