The China Post
Date: June 30, 2016
By: John Liu
TAIPEI, Taiwan — The Economics Ministry has said it will appeal a high court ruling, saying that China-based Taobao (淘寶網) is an illegitimate foreign investment in Taiwan.
The ministry claimed that while Taobao was opened in the name of a Hong Kong-based company, it was a de facto Chinese investment. The ministry levied a NT$240,000 fine and ordered the company’s withdrawal within six months.
The Taipei High Administrative Court, which handled the case, said that regulations in Taiwan don’t say that a foreign investment, once turned into a Chinese investment, needs to apply to the Economics Ministry for approval, and as such, there was no violation.
The Economics Ministry believes Taobao’s Taiwan office is actually controlled by the Alibaba Group, which in 2010 was categorized as a Chinese investment based on the “Clauses governing Chinese mainlanders’ investment in Taiwan.”
Since the company failed to apply for a status change, it was penalized accordingly, the ministry said. [FULL STORY]