Wednesday 11 February 2015

China Quality Watchdog Tells Alibaba Fakes Threaten China's Reputation

SHANGHAI / BEIJING - Alibaba Group Holding Ltd. should pay more attention to product quality and strengthen the fight against counterfeit products are sold online, branch manager of quality products from China, said company CEO Jack Ma said in a statement Tuesday.



The proliferation of shoddy products online was a threat to the reputation of China and the Communist Party in power and the government took the issue seriously, Zhi Shuping, director general of the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ), told the meeting Monday.

The comments follow a flap last month when the issue of counterfeiting and other illegal business titan Alibaba e-commerce platforms came under scrutiny at critical reports of another government regulator, the State Administration for Industry and Commerce (SAIC).

"Quality is the lifeline of the healthy development of e-commerce,"
a statement posted on the Chinese website AQSIQ Zhi quoted saying at the meeting.

"As for the image of Chinese enterprises, Chinese products and made-in-China, Alibaba - as a leading global brand eCommerce - must take itself more seriously, put more emphasis on quality, vista quality as its lifeline, create a good image and make great contributions. "

Zhi also approved Alibaba's efforts in seeking support from various parties to combat counterfeiting, the statement said.

Meanwhile, Ma Zhi said that problems with counterfeit and shoddy products still existed despite efforts to end the problem, and said it will work with business, government and society to combat counterfeiting, according the statement.

Alibaba spokeswoman said the company was aware of the report and declined further comment.

In response to the SAIC report last month, Ma and the head of that body later met to discuss the fight against counterfeiting, adopting a conciliatory tone after a public dispute between Alibaba and the regulator. The SAIC also retracted his earlier "white paper" that condemns the business practices of Alibaba.

However, several law firms have said they will take action against Alibaba after SAIC published information that could refer to a possible lack of communication of the risk factors for its investors before his bumper ready in September.