Chinese e-commerce giant Alibaba Group Holding Ltd BABA 0.65% has been widely criticized for the amount of counterfeit goods sold on its site.

According to Reuters, Alibaba now has a controversial new plan to alleviate counterfeiting, but critics are skeptical.

The Plan

Counterfeit trade on Alibaba’s site has gotten so bad that the company has been the subject of lawsuits by brands such as Gucci, but Alibaba’s latest plan focuses more on eliminating the source of counterfeit sellers rather than trying to police the site’s counterfeit listings.

According to Reuters, Alibaba has been working closely with 17 shoe manufacturers in Putian, China to develop home-grown Chinese shoe brands. Alibaba hopes that the creation of domestic Chinese brands will provide an alternate, legitimate source of livelihood for Chinese counterfeiters.

Counterfeiting Capital

Putian is a hub for the Chinese footwear manufacturing business, both legal and counterfeit. Counterfeiters in Putian produce…

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