I've been "watching" Alibaba since its inception, considering that trade/trade-leads will increasingly be sourced online and that Alibaba was one of the first significant/new movers in the space AND had major backers that included Yahoo and the Chinese government.
The "bad rap" that China suffers is that fraud/corruption/systematic graft-pay-to-play is RAMPANT.
That such behavior can reach into the very bowels of the system meant to promote and advance trade with China's many manufacturers - almost a decade after the launch of Alibaba - is the WORST of outcomes. Instead of advancing China's trade interests this just confirms everyone's fears, perceptions, etc.
Corruption as a cost of doing business? Profit = Market value of goods less cost of goods delivered PLUS corruption costs?
Corruption is not a ++++ in free market exchanges. China needs to get a handle on how to spread the profits without the spreading of graft and corruption . . that is now used . . to spread the profits. :(