Alibaba, Pinduoduo Attract More Trouble From China

Bloomberg reports that Alibaba Group Holding Ltd BABA and Pinduoduo Inc PDD brace for more trouble as China seeks tighter intellectual property norms on the e-commerce sector.
The State Administration for Market Regulation proposes restricting the e-commerce platforms from online business operations, including revoking licenses if they fail to deal with severe violations of IP rights on their platforms.
In 2019, Pinduoduo joined the U.S. Notorious Markets list after Alibaba and other Chinese firms over counterfeit product allegations.
Pinduoduo also battled IP issues in China, ranging from copyright infringement or trademark registrations. Amazon.com Inc AMZN has also faced counterfeit charges.
Alibaba co-founder Jack Ma defended the allegations by highlighting the fake good's quality and prices making them difficult to separate from the authentic ones.
Price Action: BABA shares traded higher by 3.33% at $167.69, and PDD shares traded higher by 2.65% at $97.50 in the premarket session on the last check Tuesday.