The Ministry of Economic Affairs has fined Taobao NT$1.2 million (US$36,900) for advertisements that exceeded its approved business scope and ordered the Chinese e-commerce platform to make corrections in the first half of this year or its license would be revoked.
Lawmakers have called for stricter supervision of Chinese e-commerce platforms and more stringent measures to prevent China from laundering its goods through Taiwan as US President Donald Trump’s administration cracks down on origin laundering.
The legislature’s Finance Committee yesterday met to discuss policies to prevent China from dumping goods in Taiwan, inviting government agencies to report on the matter.
Photo: Lin Ching-hua, Taipei Times
Democratic Progressive Party Legislator Kuo Kuo-wen (郭國文) said that China has been dumping beer in Taiwan, and e-commerce platforms such as Taobao have been taking similar actions.
Taobao drew attention for purchasing large advertisements in Taipei metro stations in November last year.
The ministry has already fined Taobao for the ads, which were outside the scope of its approved business activities, Deputy Minister of Economic Affairs Cynthia Kiang (江文若) said.
Taobao has until the first half of this year to make corrections, she said.
Asked if the ministry would revoke Taobao’s investment permit if fines prove ineffective, Kiang said that its license would be revoked and it might be required to withdraw its investment if it does not make changes.
Taobao is registered in Taiwan under two business categories: electronic information supply services and advertisement leaflet distribution, the ministry said.
Taobao’s ads in metro stations exceed the scope of “advertisement leaflet distribution,” it said.
Taobao contravened Article 73 of the Act Governing Relations Between the People of the Taiwan Area and the Mainland Area (臺灣地區與大陸地區人民關係條例) and Article 9 of the Regulations Governing Investment Permits by Mainland Area People (大陸地區人民來台投資許可辦法) by failing to apply for approval before changing its investment plan, it said.
The regulations state that those who engage in unauthorized investment can be fined between NT$120,000 and NT$25 million, and would be required to cease, withdraw or rectify the investment.
If the investor fails to comply with requests, authorities may impose repeated fines and revoke its permit or registration.
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