
Just a week after announcing the decision to stop internet television streaming services from iQiyi and Tencent, Taiwan turned its attention to the local branch of Alibaba’s e-commerce site Taobao because of its Chinese mainland ownership.
The investment commission of Taiwan’s Ministry of Economic Affairs said on Monday that it gave Taobao Taiwan six months to either withdraw its investment or re-register as a company from the Chinese mainland.
The commission argued that it issued the order after discovering that Taobao Taiwan’s operator, the British-registered Claddagh Venture Investment, was actually controlled by Hangzhou-headquartered Alibaba, thus violating Taiwan’s investment rules which treat investment from foreign countries differently to that from the Chinese mainland.
Meanwhile, the commission also expressed concerns over Taobao Taiwan’s potential information security risks as the platform’s user privacy policy allows consumers’ transaction data to be sent to Alibaba’s servers in the Chinese mainland.
Alibaba had no immediate comment on the order as of publication time.
Taiwan’s action against Taobao comes at a time when U.S. President Trump is forcing the sale of the hugely popular short video app TikTok to an American company citing data security concerns.
Contact reporter Ding Yi (yiding@caixin.com)
Related: Taiwan Stops Streaming Services From Tencent Video, iQiyi