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Alibaba has resolved conflict with chinese regulator, Ma says
[HONG KON] Alibaba Group Holding Ltd resolved its problems with China's State Administration of Industry and Commerce "at the first stage," billionaire founder Jack Ma said during a speech in Hong Kong on Monday.
The SAIC's actions weren't supported by "certain government officials," Mr Ma said, without elaborating. Alibaba has 2,000 full-time employees to help monitor counterfeits and has helped send 400 people to prison for violations, he said.
The SAIC issued a "white paper" last week that accused Alibaba of allowing merchants to operate without required licenses, to run unauthorized stores that co-opt famous brands and to sell fake wine and handbags.
Alibaba employees took bribes, and the company didn't fix flaws in customer feedback and internal credit-scoring systems, SAIC said.
Alibaba and the SAIC toned down the confrontation on Friday when the Chinese consumer rights agency said a report criticizing the e-commerce company didn't have "judicial effect." The statement came after Mr Ma met SAIC chief Zhang Mao and promised to step up anti-piracy spending.
Mr Ma was speaking at an event to encourage the spirit of entrepreneurship among youth. Alibaba is creating a HK$1 billion fund (US$130 million) to provide startup capital to young Hong Kong entrepreneurs to strengthen economic ties between the former British colony and mainland China.