Alibaba Group said it will seek to resolve the issues in Taiwan after being told by the island’s authorities to withdraw from the market within six months for breaching investment rules.
Taiwan’s Investment Commission has ordered Alibaba to pay a fine of NT$120,000 (US$3,800) and to withdraw or transfer its holdings from the market as the e-commerce giant was found to have broken the rules required for a mainland company, media reports said Monday.
Alibaba is said to have sought to hide its Chinese ownership by entering Taiwan with a Singapore-registered entity.
An Alibaba spokeswoman told the Wall Street Journal that the company’s wholesale trading platform, Alibaba.com, set up its Taiwan branch in 2008, before the island’s government permitted Chinese companies to invest directly in Taiwan.
“We legitimately set things up and complied with Taiwan law,” the spokeswoman said.
Alibaba will work with Taiwanese authorities “clarify the issues and, if necessary, will take proper actions to protect the legitimate interests of Alibaba.com,” she said.
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