Taiwan sets compliance deadline for Alibaba's Singapore offshoot

The company had been fined NT$120,000 (HK$30,000) for violating Taiwan's investment laws for mainland firms, a spokesman for the ministry said.

"Alibaba applied as a non-mainland, Singaporean company to operate in Taiwan in 2008, but since [the parent company's] listing in the United States in September, we have a different view about the company's status," a spokesman said.

He said although Alibaba defined itself as an international company, its major partners Yahoo and SoftBank had an agreement to support Alibaba's nominations to the board of directors.

Under these conditions, mainland-based Alibaba had control of the company, he said. As such, Alibaba was defined as a mainland firm instead of international one, according to Taiwan's investment laws. All mainland companies operating on the island had to comply with its regulations on such practices, the official said, and Alibaba could not continue to use its Singaporean status to operate in Taiwan.

The company would have to withdraw from the island if it failed to comply.