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US Retailers Warned of Alibaba’s Impact on Local Businesses

Well-known Chinese news site Sina recently reported that a U.S. business union named Alliance for Main Street Fairness has asked the U.S. Congress to eliminate the special tax benefits afforded to online retailers such as the Chinese vendor Alibaba. In September, Alibaba drew the attention of the U.S. public when it had the largest IPO in U.S. history. The Alliance has the backing of many famous U.S. retailers who are members such as Best Buy, Target, and JC Penny. They are currently running a TV and radio campaign against obvious targets such as Alibaba. Alibaba’s annual online retail sales volume is larger than the two top U.S. market leaders, Amazon and eBay, combined. The large U.S. retailers in the Alliance warned that if Congress does not “plug the hole” in online taxation, Alibaba and company may pretty soon “end” all U.S. local retailers. Alibaba’s core market is Mainland China. It is currently selling products to U.S. consumers via its Aliexpress website. Alibaba pointed out some time back that its focal point is still the Chinese domestic market. As of now Alibaba has not responded to the advertising campaign that its U.S. competitors have launched.
Source: Sina, December 2, 2014