Alibaba fake goods issue: US puts E-commerce giant back on counterfeits blacklist

This is the second time the US government produce sanctions against Alibaba where Taobao, an online marketplace under the e-commerce giant got off the from the list four years ago

Alibaba fake goods issue: US puts E-commerce giant back on counterfeits blacklist

The United States government put China's biggest e-commerce site Alibaba on its blacklist of "notorious markets" for touting fake products, a decision the company says been politically motivated.

This is the second time the US government produce sanctions against Alibaba where Taobao, an online marketplace under the e-commerce giant got off the from the list four years ago. On Wednesday, the marketplace was put back on this year's list.


“While recent steps set positive expectations for the future, current levels of reported counterfeiting and piracy are unacceptably high," US Office of the Trade Representative told media, which compiles the Review of Notorious Markets.

Alibaba said they were "very disappointed" by the action, which they claim was politically motivated when the US-China tensions rose to a new level.

The move comes on a day when president-elect Donald Trump nominated Peter Navarro as his head of trade policy team. Navarro is known for his tight stand on China and once he said that US should take a more aggressive position against China. Trump also pledged to impose 45 per cent tariff on Chinese goods if elected, a rhetoric which held down since his election.

“The fact that the decision ignores the real work Alibaba has done to fight counterfeit makes us question whether the USTR decision was swayed by the current political climate,” president of Alibaba Group Michael Evans told media.

Alibaba has been in turmoil over the counterfeit products sold by Taobao's 10 m merchants all over the world. Last year, the American Apparel & Footwear Association said it was "frustrated" by the company's silence over handling counterfeiters.

Alibaba founder Jack Ma, bragged earlier this year that fakes were often “better quality and better price than the real names”, a claim which was widely criticised.

The company was listed on the New York Stock Exchange in 2014, claimed that it made much more progress than ever, saying in 2016 they have removed more than twice the number of infringing product listings than last year.