Taobao Taiwan to shut operations by the end of 2020

UK-registered Claddagh Venture Investment, which operates Taobao Taiwan, said it will cease operations of the site by the end of 2020 due to “multiple uncertainties in the market.”

In August, the Taiwan government said it would give the ecommerce site six months to re-register as a Chinese-backed company rather than with international backing, or leave the island. The government claimed that Claddagh Venture Investment is backed by China’s Alibaba and should have registered as a Chinese-backed firm. It was also concerned that the company would send user data back to mainland China.

Claddagh’s Taiwan office, however, said Taobao Taiwan is not controlled by the Alibaba group and is a different entity from Alibaba’s Taobao China.

Taiwan has long been cautious about Chinese investments on the island. In August, it barred the operations of Chinese TV streaming services iQiyi and Tencent’s WeTV.