The Investment Commission yesterday approved Chinese e-commerce giant Alibaba to operate in Taiwan for another six months, as the Executive Yuan’s Administrative Appeals Commission is still reviewing the punitive action taken against the company, Taiwanese media reported.
In March, the Investment Commission ordered Alibaba to withdraw its investments from Taiwan by the end of August, ruling the Hangzhou-based company had breached Taiwan’s investment regulations. In 2008, Alibaba entered Taiwan by registering as a Singaporean company, Alibaba.com Singapore E-commerce Private Ltd, instead of as Chinese company. For that reason, the Administrative Appeals Commission fined Alibaba NT$120,000 (US$3,640.77).
In May, the Chinese e-commerce juggernaut appealed that ruling. On Monday, Investment Commission acting executive secretary Emile Chang said the Commission has yet to reach a verdict on Alibaba’s case.
However, at the end of July, Alibaba requested an extension of its operation for another six months in Taiwan, until February 2016, Chang said. Given that the order of an investment withdrawal cannot be reversed, Chang said the Investment Commission agreed to give Alibaba an additional six months in Taiwan while it decides the case.
“We understand that the Administrative Appeals Commission may need more time to review our punishment against Alibaba, as once we ask the company to leave, it cannot easily return to Taiwan,” Chang said.