Based on sustainability concerns, Alibaba has decided to discontinue the services of UCWeb and other innovative businesses in India, Zhang Yong, chairman and chief executive officer of Alibaba, said on Thursday during the company's analyst call for the first quarter of fiscal 2021.
Zhang added that the move is not expected to have a significant impact on the company's financial situation.
Zhang also said that the growing tension between China and the United States has also brought new uncertainties.
In response to the recent changes in the US government's policies towards Chinese internet companies, Zhang said: "We are closely monitoring the changes in the US government's policies towards Chinese companies, tracking and assessing the possible impact of these changes on Alibaba, and taking new compliance measures accordingly."
Currently, Alibaba also owns e-commerce platform Lazada in Southeast Asia, with Lazada orders growing by more than 100 percent in the first quarter of fiscal 2021.
Earlier, the Indian government announced the banning of 59 Chinese apps, with Alibaba's UC Browser and UC News among them.
Media reports said that in mid-July, Alibaba's Indian products UC Browser, UC News, and the short video Vmate all informed local employees of their impending dissolution via an internal company letter.
At the end of July, Reuters reported citing documents as saying that Alibaba and its founder Jack Ma was summoned by an Indian court in a case in which a former employee in the country says he was wrongfully fired and is seeking $268,000 in damages.
Indian court summons Jack Ma on former employee's complaint, Alibaba responds
In court filings dated July 20, the former employee of Alibabaโs UC Web, Pushpandra Singh Parmar, alleges the company used to censor content seen as unfavourable to China and its apps UC Browser and UC News showcased false news โto cause social and political turmoilโ.
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