China 's Taobao online store has been listed on the US Trade Regulation ’s ( USTR ) blacklist for the third year in a row due to sales of fake goods and intellectual property theft . This is the third year in a row that Taobao has been called out by the U.S. government over IP theft, despite measures the company claims it has taken to root out fakes, including the arrest of 1,752 suspects and closure of 1,282 manufacturing and distribution centers. The USTR praised Alibaba 's efforts to reduce the numbers of " shanzhai " products , but said small and medium firms were still in high instances . Alibaba refuted the USTR 's findings and said its practices were considered " best - in - class " by industry associations , companies and brands , both in the US and globally .
China 's Taobao online store has been listed on the US Trade Regulation ’s ( USTR ) blacklist for the third year in a row due to sales of fake goods and intellectual property theft . The USTR praised Alibaba 's efforts to reduce the numbers of " shanzhai " products , but said small and medium firms were still in high instances . Alibaba refuted the USTR 's findings and said its practices were considered " best - in - class " by industry associations , companies and brands , both in the US and globally .