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Home›Global Ministries›USTR accuses Tencent and Alibaba of letting sellers tamper with counterfeit products on ‘notorious markets’ list

USTR accuses Tencent and Alibaba of letting sellers tamper with counterfeit products on ‘notorious markets’ list

By Ellen McCoy
February 18, 2022
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In an announcement Thursday, the Office of the U.S. Trade Representative (USTR) said it had first named AliExpress, an online marketplace run by Alibaba, and WeChat, Tencent’s ubiquitous mobile app, as “marketplaces that would facilitate trademark infringement.”

The annual list includes 77 entities allegedly involved in “copyright counterfeiting or piracy”, covering more than a dozen countries.

But in its statement, the USTR specifically pointed the finger at Chinese companies, noting that several other popular platforms from China “continue to be listed”, such as Taobao, another well-known online shopping portal run by Ali Baba (BABA)and Pinduo-duo (PDD)the newcomer to e-commerce that saves people money when they ask friends to buy the same item.
Baidu Wangpan, a cloud storage service owned by the Chinese search giant Baidu (BIDU)is also accused of allowing copyright infringers to “widely share links to pirated movies, TV shows, and books,” according to the USTR report.
In a statement Friday, Tencent (TCEHY) said that “we strongly disagree with the decision made by the U.S. Trade Representative and are committed to working collaboratively to resolve this issue.”

Intellectual property protection “is at the heart of our business,” the company continued, adding that it takes steps to crack down on violations on its platforms “including education, enforcement, and working closely with rights holders, government agencies and law enforcement agencies”.

Alibaba and Baidu did not immediately respond to a request for comment.

In its 56-page report, the USTR claimed that “China continues to be the world’s number one source of counterfeit goods.”

“Counterfeit and pirated goods from China, as well as [transferred] goods from China to Hong Kong, accounted for 83% of the value” of those items seized by U.S. Customs and border agents in 2020, according to the trade agency.

China’s commerce and foreign ministries did not immediately respond to a request for comment.

“The global trade in counterfeit and pirated goods undermines critical US innovation and creativity and harms American workers,” USTR Ambassador Katherine Tai said in a statement Thursday.

“This illicit trade also increases the vulnerability of workers involved in the manufacture of counterfeit products to abusive labor practices, and counterfeit products can pose significant health and safety risks to consumers and workers around the world.”

— CNN’s Beijing bureau contributed to this report.

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