Jack Ma, Chairman of Alibaba Group Holding Ltd (NYSE:BABA), said that they have followed local laws when they entered the market, after their company was told to leave Taiwan within 6 months because of so-called investment violations. A Bloomberg article reported on the news and discussed about the allegation and Jack Ma’s remarks in response to Taiwan’s Investment Commission.
“Taiwan is very important for Alibaba. As a global company, no matter where we go in the world, we need to comply with the local laws,” Ma said.
Jack Ma gave these remarks after Taiwan’s Investment Commission asked Alibaba Group Holding Ltd (NYSE:BABA) to leave by the end of August 2015 because the company’s local entity was registered as Singaporean instead of mainland Chinese. According to Emile Chang, who is acting executive secretary of the commission, Alibaba Group Holding Ltd (NYSE:BABA) was registered as a Singaporean entity in the year 2008, but last year the company’s filings for its U.S. share sale showed evidence of Chinese control.
“We have asked Alibaba to leave. We just want mainland investors who invest in Taiwan to follow the rules,” Chang said.
In Taiwan, Alibaba Group Holding Ltd (NYSE:BABA) has 100 employees and Alibaba.com has 140,000 registered users in the market. Alibaba Group Holding Ltd (NYSE:BABA) is mainly serving medium and small-sized businesses on its B2B platform. According to Chang, it is not guaranteed that any new application from Alibaba Group Holding Ltd (NYSE:BABA) to operate would be approved before the August deadline, as the application process for a mainland investment in Taiwan takes approximately two months.
“Alibaba’s Singapore subsidiary didn’t get approval from my office. They can choose to sell the branch to another investor or close it,” Chang said.
Jack Ma wants more than half of sales to come from outside of China which is currently just 5%, and the company won’t back down just because of alleged investment violations. Jack Ma founded Alibaba Group Holding Ltd (NYSE:BABA) in his apartment 15 years ago and made it one of the biggest e-commerce giants of the world. Alibaba Group Holding Ltd (NYSE:BABA) faced many issues in the past as well and it is well aware that getting out of such scenarios and allegations to run its business without interruption is vital to keeping alive the trust and satisfaction of its investors.
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