A new report revealed that the United States has added China’s third-largest e-commerce platform to its list of “notorious markets” as a result of intellectual property rights violations.
Pinduoduo has been banned on the grounds that it has failed to curb the sale of counterfeit products.
The USTR annual review of protection of intellectual property rights about “infamous markets” comes at a time when the United States and China negotiations to end tariff battles.
In its report, USTR revealed that the Pinduoduo e-commerce site attracts shoppers interested in low prices, even though they are aware of the proliferation of counterfeit products.
A spokeswoman for the Pinduoduo website said that counterfeit goods were an industry problem, saying the site would work with trade associations, trademark rights holders and regulators to help clean up the site.
Pinduoduo has already attracted over 300 million users even though it is less than 3 years old, and its monthly gross merchandise volume (GMV) has even exceeded that of JD.com