Chinese internet giant Alibaba, which is gearing up for a $20bn listing on the New York Stock Exchange, has agreed to further crack down on fake goods sold on its website.

The website, which is likely to become the United States’ biggest initial public offering since 2008, has agreed to sign a deal with the China-Britain Business Council to protect intellectual property and crackdown on counterfeiters.

Just over two years ago Alibaba was under US scrutiny because so many counterfeiters were selling goods on its website. But since unveiling its plans to list later this month, it has been cleaning up the site and clamping down on forgers.

The China-Britain Business Council today said the Alibaba Group has signed a Memorandum of Understanding to reinforce the “processes Alibaba Group already has in place”.

The agreement will make it easier for members of China-Britain Business Council to notify Alibaba about infringing products they find and will ease the removal.

John Spelich, vice president of international e-commerce business development at Alibaba, said: “We are pleased to collaborate with CBBC and British companies as part of our ongoing commitment to working with stakeholders on the protection of intellectual property rights; we firmly believe that collaborative efforts with organizations such as CBBC, which work hand-in-hand with the government, will create significant results.”

The deal comes as the UK government is visiting China as part of an effort to work with the country on improving exports and stopping design theft.

Baroness Neville-Rolfe, minister for intellectual property, headed a delegation this week to boost links and hosted symposium for 100 British and Chinese businesses.

Some 70 per cent of counterfeit goods seized at EU borders originate from China, while UK businesses are concerned about the lack of intellectual property protection.