The economics ministry is demanding that Alibaba withdraw or transfer its holdings from its operation in Taiwan by August 24. That’s because it has violated investment rules for Chinese companies.
In 2008, Alibaba registered as a Singaporean company in Taiwan. Last year, it had its IPO on Wall Street, but it never changed its status in Taiwan to a Chinese-owned company. Since its company structure has changed, the economics ministry says it must register with the investment commission.
On Feb. 24, the ministry fined it NT$120,000 for inaccurate declaration of its shareholder structure. It also said that the company must withdraw or transfer its holdings from its operations in Taiwan within 6 months, or by August 24. After it does so, Alibaba can register itself as a Chinese company in Taiwan.
Alibaba employs close to 100 people in Taiwan and runs its popular consumer e-commerce site Taobao in Taiwan.