U.S. Insults China By Listing Taobao as “Notorious” For Piracy and Counterfeit Selling

IDG News today reported that China’s Ministry of Commerce was deeply unsatisfied with the U.S. Trade Representative (USTR) listing of China’s Taobao on the world’s “notorious market” list for piracy and counterfeit offenders.

“Since there is no conclusive evidence, there is no detailed analysis, this is very irresponsible and not objective,” said Ministry of Commerce spokesman Shen Danyang during a Wednesday media briefing.

A part of the Alibaba empire, Taobao is China’s crown jewel making up a mind boggling 85% of China’s RMB513 Billion B2C/C2C market. So it is understandable that China feels offended when other people or countries like the U.S. say it is supporting sales of fake goods. Of course there must be some cases of unscrupulous trading; I don’t believe it makes up the majority of transactions on the site. Even sites like EBay have a hard time of controlling such practices in America or other operating cities.

China’s Ministry of Commerce is mainly unsatisfied with the listing because they feel they did not act objectively, but instead relied on third party sources. U.S. authorities should take a more objective approach to China’s intellectual property protection efforts, in order to avoid having a negative impact on Chinese businesses, Shen said

Like all internet sites in China, there is a high risk of fraud being committed online. There are few guaranteed mechanisms to protect against it. Alibaba Group noted they are committed to protecting intellectual property rights and work closely with well known brands to sell genuine products.