China-based companies WeChat and AliExpress have been placed on the piracy market list by the Biden administration.
The administration said "the activities caused significant financial losses for American businesses and workers and posed risks to consumer safety last year," according to The New York Times.
The administration also removed the companies from all Amazon foreign operation listings, The New York Times said.
Other China online markets listed on the 2021 Notorious Markets list include Baidu Wangpan, DHGate, Pinduoduo, and Taobao, according to a Feb. 17 press release from the Office of the United States Trade Representative (USTR).
Various Amazon stores in Britain, Canada, France, Germany, and India held an outcry regarding the operations, according to The New York Times.
“The global trade in counterfeit and pirated goods undermines critical U.S. innovation and creativity and harms American workers,” Ambassador Katherine Tai said, according to a USTR release. “This illicit trade also increases the vulnerability of workers involved in the manufacturing of counterfeit goods to exploitative labor practices, and the counterfeit goods can pose significant risks to the health and safety of consumers and workers around the world.”
The first Notorious Markets report was released in 2006.
"Since February 2011, USTR has published annually the Notorious Markets List separately from the Special 301 Report, to increase public awareness and help market operators and governments prioritize intellectual property enforcement efforts that protect American businesses and their workers," the USTR release said.
WeChat is an instant messaging, social media, and mobile payment application created by Tencent. AliExpress is an online retail store that offers products to international buyers and is owned by the Alibaba Group.
“We know the challenges in I.P. protection and remain fully committed to advancing our leadership in this area,” Alibaba said in a statement.
TipRanks reported that since the news was released, Tencent is down 1.9% and Alibaba is down 3.3% on the Hong Kong Exchange, as of Feb. 18.