China admits to delaying criticism of retailer Alibaba

The Chinese government has published a critical report about Alibaba, admitting it had withheld the document until now because of the internet retailer’s multibillion-dollar US stock flotation.

Alibaba has a “credibility crisis” with a failure to crack down on dodgy merchants, counterfeit goods, bribery and misleading promotions, said the Beijing-based State Administration for Industry and Commerce.

The report came just hours after Alibaba’s US rival Yahoo! said it would spin off its remaining $39bn (£26bn) stake in the Chinese company. Alibaba went public in September and it is now valued at more than $250bn.