Things were fine as long as the two companies didn't enter each other's territory: For Alibaba, this was the China market and for Yahoo , this was everywhere else. (Yahoo has a significant presence in Hong Kong, and commands more than 95% of all traffic in Taiwan through Yahoo 's acquisition of Kimo in 2000, and Yahoo founder Jerry Yang's Taiwan roots.)
But now, Yahoo is showing signs of wanting to accept advertising from Chinese SMEs in Hong Kong. On the surface, this doesn't seem like a significant move, but like everything else in China, there is more than meets the eye.
For one thing, Alibaba is moving out of the Chinese home market into other markets where Yahoo has a strong presence including India, Japan and the US.