China’s Alibaba Group said yesterday it will reconsider its alliance with Yahoo (YHOO.NASDAQ) after a Yahoo executive was quoting saying the company many begin to compete in the mainland advertising market, Reuters reported. Yahoo, which currently owns 40% of the Alibaba Group, which in turns holds subsidiaries like listed Alibaba.com (1688.HK) and popular online auction site Taobao, has no direct presence in China at present. But Yahoo Hong Kong Managing Director Alfred Tsoi Po-tak told the South China Morning Post that the company is considering trying to attract mainland online advertisers to advertise on Yahoo’s Hong Kong site. Particularly irritating to Alibaba was Po-tak’s suggestion that Yahoo would target small and medium enterprises to the site, which comprises Alibaba’s main customer demographic. This would put Yahoo Hong Kong in direct competition with Alibaba.com.