Chinese media are reporting rumors that Yahoo (YHOO) China, which is managed by Alibaba.com, is having problems with its global headquarters in the United States and might break away from Alibaba to develop independently.

Yahoo China has denied the rumor, saying that it will still be held by Alibaba. However, Yahoo China's chief Xie Wen recently resigned from his post after only forty days on the job, and this is fueling the rumors that problems exist at the American portal's wayward China office.

Some other media say that Jerry Yang, founder of Yahoo, is dissatisfied with Jack Ma, CEO of Alibaba, and has lost trust in him, which is why Xie Wen, the former CEO of Yahoo China who held similar strategic views with Ma, has been asked to leave. Yahoo China says this kind of report lacks any truth.

Tao Ran, PR Manager at Yahoo China, says that Alibaba will retain its controlling stake over Yahoo China. Alibaba announced the acquisition of Yahoo China in August 2005.