Want China Times, Staff Reporter 2014-12-03
As the long fingers of Alibaba, China's leading e-commerce firm, reach into the US market, domestic retailers are urgently calling for the plugging of the online taxation loophole as the best defense for their threatened survival, reports Shanghai-based outlet the Paper.
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| The Alibaba logo. (Photo/Xinhua) |
As the long fingers of Alibaba, China's leading e-commerce firm, reach into the US market, domestic retailers are urgently calling for the plugging of the online taxation loophole as the best defense for their threatened survival, reports Shanghai-based outlet the Paper.
Now that
Alibaba has made its US market intentions clear, it has replaced Amazon as the
foremost enemy of other major US retailers, said the report.
Over the
last weekend, the Alliance for Main Street Fairness aired a TV and radio ad
urging Congress to remove taxation privileges for Alibaba and other online
e-commerce heavyweights. Some of the biggest — Target, Best Buy and Home Depot
— and thousands of smaller retailers have put their weight behind the
statement.
US
retailers watched as the outperforming internet beast lumbered into the New
York Stock Exchange in September for the world's largest IPO, the stock price
of which has since doubled. Its sales figures are formidable, overshadowing
Amazon and eBay combined. Sooner or later, Alibaba will take advantage of the
taxation loophole to boost its edge in the US market, noted an official with
the Alliance for Main Street Fairness.
Alibaba
refuted the accusations in the ad, saying that the company has always paid taxes
according to the regulations of host nations, including the US, according to
the Financial Times.
US
retailers and industry analysts believe that, backed by the strong financial
clout in the wake of its record IPO and its feverish growth worldwide, Alibaba
is gearing up to launch tailor-made services to US consumers.
libaba
claims that its focus is still on the Chinese market for the time being, as
increased wealth and the popularity of the internet for shopping among people
in China will assure continued robust growth in the domestic market.
Although
AliExpress, the arm for Alibaba's international retail business, can sell
merchandise to US consumers, Taobao, its flagship e-commerce website, has yet
to offer English-language services. In June, Alibaba bought into 11 Main, a US
B2C platform similar to Tmall.
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