Taiwan orders Alibaba to promote stake in e-commerce platform

Taipei, August 24

Taiwan ordered China’s Alibaba Group on Monday to eliminate its stake in an area e-commerce platform, Taobao Taiwan, citing a danger that customers’ private data is perhaps transferred to the mainland.

The order provides to mounting strain on Chinese firms within the United States and different international locations over safety issues.

Taiwan and China cut up in 1949 throughout a civil conflict. They don’t have any official relations however have thriving commerce and funding ties. Taiwan intently watches these hyperlinks to attempt to keep away from being dominated by its big neighbour, which has threatened to invade the island.

“Taobao Taiwan is operated by a British company but Alibaba Group’s stake in that company allows it to control the consumer-to-consumer platform in violation of Taiwanese rules,” the Ministry of Economic Affairs mentioned.

Alibaba Group, headquartered in Hangzhou, southwest of Shanghai, is the world’s largest e-commerce firm by whole gross sales quantity.

The person settlement for Taobao Taiwan offers permission to “send the member’s transaction data back to the Alibaba Group server in China,” the ministry mentioned, including: “There may be an information security risk.”

“Alibaba’s 29 per cent stake in British Claddagh Venture Investment Limited is below the 30 per cent legal limit. But the shareholder structure allows Alibaba to control the British venture by vetoing decisions,” the ministry mentioned.

Alibaba had six months to “withdraw the investment,” the order mentioned.

Alibaba Group didn’t instantly reply to a request for remark.

Taiwan is amongst governments which have imposed curbs on using telecom gear from Huawei Technologies Limited, the world’s largest maker of switching gear.

In the United States, the White House is urgent the Chinese proprietor of TikTok to promote the short-video app because of issues it’d switch customers’ data to China.

President Donald Trump has issued a sweeping however imprecise order barring the US firms from coping with TikTok and WeChat, a well-liked Chinese messaging service. AP

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