A newly announced investment fund will leave Alibaba with a foothold in Taiwan even if it is forced to withdraw from the island following a government ruling. On Monday, the Chinese e-commerce giant announced a NT$10 billion (US$316 million) fund to provide capital to young entrepreneurs in Taiwan. Hours later, in an unrelated development, the Taiwanese government ordered Alibaba Singapore , through which the company does business on the island, to resubmit its application to operate there within six months or leave. The company has also been fined NT$120,000 (US$30,000) for violating Taiwan's investment laws for mainland firms, an economics ministry official said. Watch: Alibaba down and out in Taiwan "Alibaba applied as a non-mainland, Singaporean company to operate in Taiwan in 2008, but since [the parent company's] listing in the United States in September, we have a different view about the company's status," a spokesman for the ministry said. In the government's view, Alibaba Singapore is controlled from the company's Chinese headquarters, making it a mainland firm rather than an international one, according to Taiwan's investment laws. Despite considerable cross-straits economic links and rapprochement in recent years, Taiwan still regards China as a political enemy and mainland investment on the island is strictly regulated. According to an Alibaba spokeswoman, the company's wholesale trading platform, Alibaba.com, established its Taiwan branch in 2008, before the government permitted Chinese companies to invest directly in Taiwan. Alibaba Singapore is a subsidiary of its Alibaba.com Ltd arm, which is incorporated in the Cayman Islands. "We legitimately set things up and complied with Taiwan law," a spokeswoman told the Wall Street Journal , adding that Alibaba would work with Taiwanese authorities to "clarify the issues and, if necessary, will take proper actions to protect the legitimate interests of Alibaba.com." Citing sources in the investment commission, Taiwan's United Daily News said the government had been unable to obtain evidence that the firm was linked to its Chinese parent company until after Alibaba Group issued filings which detailed its corporate structure prior to its IPO last year. The government's actions are not expected to have any effect on the launch of the investment fund. The company said that the program is expected to launch in the second half of this year, "subject to regulatory requirements and the authority's approval". "I have been impressed by the young people in Taiwan because they are well educated, innovative and hardworking," Alibaba Group chairman and company founder Jack Ma Yun said on Monday. "By encouraging the entrepreneurial spirit among Taiwan’s young people, we hope to spur similar efforts by others to enable the younger generation to unleash their potential and realize their dreams." Ma unveiled his intention to fund Taiwanese start-ups during a forum in Taipei in December. He said that young entrepreneurs on the island are hard working and creative, and he hoped such funds could help them launch their companies. The Taiwan fund comes after Alibaba announced a similar scheme for Hong Kong in February , pledging HK$1 billion (US$120 million) to fund start-ups in the city. Alibaba has been courting businesses in Taiwan and Hong Kong as it seeks to expand outside the mainland market. Taobao, the company's main e-commerce business, relies heavily on entrepreneurs who sell their products using its marketplace.