Retail in Asia

In Trends

Taiwan asks Taobao to pull out in six months

Taiwan has given e-commerce giant Alibaba Group Holding Ltd six months to wind down its online marketplace Taobao’s operations on the island after it failed to apply for the permit required for a Chinese mainland company to do business there, Taipei authorities said on Monday.

An official at Taiwan’s investment commission said a fine of TWD240,000 (USD7,896) has also been imposed on Taobao in what is the second case of an Alibaba operation falling foul of the permit rules for mainland Chinese companies this year. In March, was told to leave Taiwan within six months and fined TWD120,000 for a similar reason.

While the fine is small and Taiwan shoppers can continue to order goods via Taobao’s mainland base in future, the permits glitch is an unwelcome headache for Alibaba as its seeks to grow business outside its mainland base.

(Source: Shanghai Daily)