Tencent Holdings Ltd and Alibaba Group Holding Ltd’s e-commerce sites have been included to the US government’s latest “notorious marketplaces” list.
These 42 online and 35 offline markets are said to participate in or enable substantial trademark counterfeiting and copyright piracy.
Notably, the USTR office identified for the first time AliExpress and the WeChat e-commerce ecosystem, two large China-based online markets allegedly facilitating considerable trademark infringement.
The list includes nine physical markets in China “that are known for the creation, distribution, and sale of counterfeit goods,” according to the USTR office.
Alibaba said it will keep cooperating with governments to protect intellectual property across its platforms.
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According to Tencent, it “is committed to working together to remedy this situation.” It noted that it regularly monitored, discouraged, and prosecuted infringement across all platforms and had heavily invested in IP protection.
Inclusion on the list harms companies’ reputations but has no direct consequences.
The American Apparel and Footwear Association (AAFA) and the Motion Picture Association (MPA) praised the USTR’s report.
On Wednesday, the USTR said the US needs new tactics and instruments to cope with China’s “state-led, non-market policies and practises.”
The US and China have been at odds for years on topics including tariffs, technology, and intellectual property.
The US said China had failed to fulfil some obligations under a “Phase 1” trade agreement inked by previous President Donald Trump’s administration.