Taiwan hits Alibaba in crackdown on 'hidden' Chinese investment

Local Taobao site faces ultimatum as probe links operator to e-commerce giant

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Employees sort boxes and parcels at a logistic center of an express delivery company in China's Harbin. Online mall Taobao's Taiwanese arm was ordered to reregister as a Chinese-backed business. © Reuters

YU NAKAMURA, Nikkei staff writer

TAIPEI -- Taiwan has taken on China's biggest e-commerce group in its latest action against companies accused of circumventing tighter regulations on mainland investment in this market.

Online mall Taobao's Taiwanese arm was ordered Monday to reregister as a Chinese-backed business or leave within six months after authorities said that Alibaba Group Holding hid its participation by routing its investment through the U.K. and Singapore.

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