Transaction obstacle

Core governance measures

Governance effects

A-B subcase



In May 2003,Taobao Marketplace was founded, at the same time it announced the free entry policy

In October 2005, additional 3-year free entry policy was announced

Effectively repelled competitors and attracted many businesses (sellers)

C-B subcase



In October 2003, Alipay service was launched and then inclusive credit intermediary service was introduced into China

In December 2004, Alipay was spun off from and operated independently

In February 2005, Alipay was upgraded with a “full compensation” system

Greatly dispelled the worry of wait-and-see buyers and attracted them successfully

B*-C* subcase


PMDDTSs (include assisting purchase and assisting sale)

In March 2002, “chengxin tong” (credit certificate)was launched for sellers and buyers in China

In June 2008, “chengxin tong” (credit certificate)for individuals was launched

In November 2003, Tradelink was launched to allow buyers and sellers to communicate in real time through the Internet

In July 2004, Aliwangwang, a PC version of communication software that allows buyers and sellers to communicate with each other by instant text, voice and video was released

In November 2007, Ali mom, an online marketing technology platform was established

In October 2007, Alibaba Finance successfully lent the first online guaranteed loan

In August 2009, “Ali loan” was expanded with China construction bank in zhejiang and Shanghai

In September 2009, Aliyun was founded

In December 2009, the acquisition of China wanwang, strengthening Ali E-commerce’s ability to provide additional Internet infrastructure services to domestic small businesses was completed

Effectively provided comprehensive assistance for buyers and sellers, helping them to gradually overcome information asymmetry obstacles and trading condition limit, and then promoted the formation of online trading habits in China