A furious spat recently broke out between China's biggest online shopping site Taobao and the State Administration of Industry and Commerce (SAIC). The country's top commerce watchdog revealed the results of an investigation into Taobao on January 23, which found the rate of substandard products on the e-commerce platform was over 60 percent. The site hit back publicly at the report, accusing the SAIC of not monitoring enough samples or using proper procedures. 

In a matter of days, the squabble escalated, and after several rounds of back-and-forth, the two sides were still at loggerheads. Taobao, according to a formal note released on its official Sina Weibo account, decided to file a complaint to Liu Hongliang, a director of the SAIC who is in charge of Internet monitoring. A faceoff like this is quite rare in the Chinese business sector.

China's online business thrives with the advancement of IT technology. It has become one of the most dynamic spheres of the Chinese economy. Take Taobao as an example, more than 800 million items are listed for sale. On the discount sales day on November 11, sales on Taobao alone topped 57 billion yuan ($9.1 billion). However, the blossoming and expansion of e-commerce brings not only prosperity, but also more regulatory difficulties. Taobao, a hub for sales of products, is responsible for illegal activities right under its nose. The SAIC, a regulator which must make fair and credible judgments, cannot fully guarantee the report represents the entire website, where millions of products are waiting to be sold.

The high-profile kerfuffle has been the focus of national attention for the past few days. Alibaba, Taobao's parent company, suffered a loss of $11 billion in market value on Thursday, although whether it is related to the SAIC spat is unknown.

The public have also weighed in on the debate, criticizing Taobao's arrogance as well as the SAIC's selective approach to law-enforcement.

To Taobao, the regulator and the public, too much emphasis on each other's inadequacies might jeopardize their initiative to carry forward the endeavor. A more efficient interactive mechanism needs to be set up, which could serve as a role model for more companies and authorities.

No matter how the squabble ends, a lose-lose situation is not expected. Right from the beginning of this war of words, both Taobao and the SAIC restated their resolve to crack down on fake goods. At base, Taobao values its credibility and reputation as much as the SAIC is fulfilling its commitment to protect consumer rights. It is also the shared goal of all sides to keep Taobao competitive. In this sense, both sides are allies rather than opponents.