U.S. places China’s third biggest e-commerce platform on its notorious markets blacklist

The United States has continued to keep Alibaba’s taobao.com, China’s biggest e-commerce platform on this blacklist.

Continuing its crackdown on Chinese companies which exploit and steal U.S. intellectual property, the United States added Pinduoduo.com, China’s third-largest e-commerce platform to its list of “notorious markets” for violations of intellectual property rights.

The United States also kept China on its priority watch list over piracy and counterfeiting concerns.

The U.S. Trade Representative’s Office placed Pinduoduo.com, which according to USTR is the third largest Chinese e-commerce platform by number of users, on its blacklist of commercial marketplaces that fail to curb the sale of counterfeit products.

The United States has also kept Alibaba Group’s taobao.com, China’s largest e-commerce platform, on its blacklist.

China’s inclusion on the list “reflects the urgent need to remediate a range of intellectual property-related concerns,” said a USTR official.

With regard to Pinduoduo.com, USTR stated, “Many of (the site’s) price-conscious shoppers are reportedly aware of the proliferation of counterfeit products on pinduoduo.com but are nevertheless attracted to the low-priced goods on the platform.”

In response to the report, Pinduoduo’s spokeswoman stated, counterfeit goods are “an industry-wide problem”. In order to mitigate such concerns, it would work with trade associations, brand rights holders and regulators to help clean up its site.

“To ensure a world-class shopping experience for our consumers, we have introduced one of the strictest penalties for counterfeit merchants in our industry in China, collaborated closely with law enforcement and employed technologies to proactively take down suspicious products,” said Pinduoduo’s spokeswoman in a statement.

According to USTR, although Alibaba has taken steps to address counterfeit products offered and sold on its Taobao marketplace, widespread infringement continue to take place.

As per Alibaba’s spokesperson, its practices are considered “best-in-class” by industry members.

“In fact, zero industry associations called for our inclusion in the report this year. We will continue to wage this fight against counterfeiters,” said Brion Tingler, head of Alibaba’s external affairs.

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