The public feud between the Chinese government and giant online retailer Taobao has escalated with the government’s announcement that all e-commerce in China will now be under heavy regulation to prevent the sale of counterfeit and mislabelled goods.

The Minister of State Administration for Industry and Commerce, Zhang Mao, said that e-commerce providers have to take “key responsibility” for the sale of counterfeit goods, and promote “credibility and integrity” on their respective sites. He added that government regulators plan to increase supervision over the industry and propose new legislative bills focused on that aim.

Earlier this year, the Ministry published a report indicating that only 37 percent of goods sold on Taobao.com, Alibaba’s popular e-commerce platform, were genuine, as compared to 59 percent for other major online shopping platforms. Following the release of the report, Alibaba’s CEO, Jack Ma, met with Minister Zhang publicly to refute the findings.

Despite Ma’s assurance, Zhang maintains more needs to be done. “The reason why there are so many market violations is that the cost of breaking the rules is too low,” he said, adding the market will fundamentally improve if online retailers face harsher penalties.

To suggest China’s online retail industry has been booming would be something of an understatement. The industry enjoyed a 50 percent rise in sales in 2014, amounting to RMB 2.79 trillion (about US $450 billion), representing 10 percent of the country’s total retail sales.