Chinadotcom has terminated a partnership with CMC Magnetics and is suing the Taiwan company, alleging it neglected contractual responsibilites and breached the contract by setting up a competing Web site. CMC was commisioned last May to operate and develop Chinadotcom's Taiwan focused portal, taiwan.com. But against the terms in the contract, CMC set up its own Web site - taiwanet.com - and focused its energies on developing 'competitive content', according to Chinadotcom. 'Under the contract, they were to provide management and operational services to taiwan.com and develop content for the portal,' spokesman Susan Chan said. 'But they did not perform their duties properly and started developing competitive sevices through [their own portal] taiwanet.com.' Chinadotcom promptly terminated the contract and is suing CMC for repayment of US$2 million in loans. Ms Chan said the company may also seek other breach-of-contract remedies against CMC. It was unknown whether CMC would sell its 3.3 per cent holding in Chinadotcom as a result of the court proceedings. Ms Chan declined to say whether the shares were paid to CMC as fees for its management services. She said Chinadotcom had found new partners to operate taiwan.com and there would be no disruption to services. 'We have the resources to ensure that there will be no disruptions,' she said. Chinadotcom would not reveal the number of page views or registered users of taiwan.com. Chindotcom registered 16 million page views in April across its entire network.