Some of the penalized companies had used false invoices to siphon money from the company for various other uses.

It is widely believed that Amazon uses data from its marketplace to develop private-label brands, according to CNBC, which said the brands viewed that as a clear attempt to "siphon off demand" from their products.

He said Suzhou in Jiangsu province is the best choice for startups, as bigger cities have the siphon effect, meaning it is easier for large corporations to seek the resources they require, but it is difficult for small companies to grow.