Sharks fins land Alibaba.com in hot soup

By Bruce Einhorn, BusinessWeek
Monday, July 23, 2007 01:33 PM

For the past seven years, Patric Douglas has run a San Francisco company that gives people a very unusual vacation experience.

His customers go out on a boat, get into cages, are submerged beneath the surface of the ocean, and watch as sharks swim by. It's called shark diving, and while hanging out underwater with a great white may not be your idea of fun, Douglas, 36, has found enough thrill-seekers that his company, Mega Outdoor Adventures, takes about 500 people a year to the waters off the coast of Baja California to see all sorts of sharks, including great whites, tiger sharks, and whale sharks.

"There are some really funky diving opportunities," explains Douglas, who now has four vessels operating full-time.

Thanks to his shark-diving business, Douglas has also become an unlikely leader of a campaign targeting one of China's top e-commerce companies. Alibaba.com, a business-to-business marketplace that is 40 percent owned by U.S. Internet giant Yahoo, provides small and midsized companies in China the chance to find buyers and sellers overseas.

And, among the thousands of products displayed on Alibaba's site, are numerous types of shark fins, prized by many Chinese as the vital ingredient in shark fin soup, a delicacy often found on the menus at high-end banquets in Hong Kong, Shanghai, and other Chinese cities.

Harvesting shark fins can be a brutal practice--with sharks often tossed back into the ocean to sink to the bottom and die--and Douglas and other activists say that shark populations worldwide are plummeting as a result of the growing demand for fins.

"Something evil is going on here," he says. The shark fin trade "is decimating the oceans."

On Congress' radar
That has turned Douglas and other divers into activists. Since starting last year, they have sent petitions with thousands of signatures to Alibaba demanding that Founder, Chairman, and Chief Executive Officer Jack Ma crack down on the shark fin merchants using its site.

Alibaba, which has more than 180 companies engaged in buying or selling shark fins, is "the New York Stock Exchange of shark fins," says Douglas. Adds Wolfgang Leander, a 66-year-old diver and director of shark preservation at the Ocean Realm Society, a lobbying group based in Florida's New Smyrna Beach, "They are offering the shark fin traders a very convenient platform to do business."

For Yahoo, the campaign against Alibaba (widely rumored to be readying an initial public offering for later this year) by the world's shark activists is the latest in a string of China-related public relations challenges.

Last year, at a congressional hearing on the role played by U.S. companies in censoring the Internet in China, Representative Tom Lantos condemned Yahoo and others for their "abhorrent" willingness to cooperate with the Chinese government. In May, Shi Tao, a journalist currently imprisoned in China.--thanks in part to Yahoo's cooperation with local police--sued the company in the United States.

The headaches have not just been about free-speech issues. A Chinese court in April ruled against Yahoo China (owned by Alibaba) in a lawsuit brought by IFPI, the International Federation of the Phonographic Industry, alleging that the company facilitated digital music piracy. Alibaba is appealing.

The likely Alibaba IPO should provide some welcome good news from China for new Yahoo CEO Jerry Yang, who was instrumental in negotiating the acquisition of the Alibaba stake in 2005. Probably the last thing Yang wants for Yahoo is another black mark against China.


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Can anyone please tell me how I/we may make our voices heard in this campaign against the Chinese company and Yahoo for allowing this disgusting trade in sharkfins?
Posted by nereus on Wednesday, July 25 2007 12:00 AM

Be Quiet and shut up! Its their national food and you have no business to dictate what other nationality people should and shouldn't eat! Just because you like to swim with sharks, others shouldn't eat it or fish it- that is your opinion only!!! What you really should be concerned about are peoples' lives being taken by your beloved sharks! and others alike! Why the human life is below the animals rights nowadays??? Think about that!!!
Posted by Fisherman on Wednesday, July 25 2007 01:38 AM

Ocean fishing is inadequately monitored throughout the waters off the coast of the United States and throughout the world, so the best course of action we can take is to not eat the fish. Sharks are primarily fished or caught with nets such as longlines and gillnets. And for all endangered species (such as a numerous species of whales, dolphins, turtles, other sharks and rays just to name a few), by-catching – incidental capture in net fishing operations – is the single biggest threat to their existence. Alibaba.com needs to become a leader and set an example and do what is right for people, sharks and other species.
Posted by Nicole Wernke on Wednesday, July 25 2007 03:21 AM

Fisherman (doesn't your nickname says it all?), why not be quiet and shut up yourself? When one knows so little about something, that's by far the best to do!

1) Shark fins is not "their national food", but a very expensive meal allowing you to display your high social status.
2) All over the world, ess than half a dozen people are killed every year by sharks. How many by other human beings (and I'm not talking about wars, but murders)? How many in road accidents?
3) There are about 500 different species of sharks, 95% are totally harmless to man
4) Between 70 and 200 million sharks are slaughtered a year, mainly (but not only) because of shark finning. At this pace, we are going straight and fast to an ecological disaster (but you probably ignore as well the paramount importance of sharks in oceans' balance?) and each and every human's life will badly suffer from it, Chinese people and yourself included...
Posted by Jifa on Wednesday, July 25 2007 04:49 AM

Thank you Jifa, well said.
Nereus, Google 'Shark finning' and you will find a ton of resources for you to consider getting involved in. There are many Blogs (mine for example), and web pages out there devoted to spreading the word about the atrocity being committed against this great animal for it's fins because of a bowl of soup.
Posted by Vicezilla on Wednesday, July 25 2007 09:26 AM


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