You need to report it to Alibaba..... be careful in Alibaba so many scams

if it was a lot of money I would talk to a lawyer in the city where the factory is located. but 99% of the time there really is nothing that can be done unless you want to locate the owner and have a "private meeting" but you better be ready to take what you can and leave town quickly

Fraud? There is no fraud in the Middle Kingdom!

It boils down to one of 2 things: either you are stupid or the other company is very clever.

THIS IS HOW THE CHINESE DO BUSINESS AND THIS IS WHAT ANY POLICE, OFFICIAL, ETC WILL TELL YOU.

Honestly, take the fraud, decide to join the ever growing community of people who WILL NEVER TRUST THE CHINESE OR ANYTHING FROM CHINA ever, and find an actual reputable company to do business with. The Chinese will never change. Lying, cheating, robbing, etc are part of their DNA, and the only way to deal with them is to out-lie, out-cheat, and out-steal FROM THEM.

Yes you can complain to Alibaba and they do take it seriously, also there is a Govermental complaints department. You have to weigh up the odds of success: How much money was involved, Is the company solvent, Do you know somebody who can help you, Send a story into the China Daily.
Most companies who do business know that it is not good for their reputation when a Chinese company rips off a foreign company.
If there was a large amount of money involved jump and scream, someone might listen.
I had something happen to me once and I can tell you they lost their face badly, actually very badly
Good Luck

There is a high likelihood that you will recover none of this capital. The mistake that you made appears to be that you took a company listed on Alibaba just on trust. Experienced traders and buyers NEVER do that when conducting business in China. You need to do a fair bit of footwork and research beforehand. This means that you either come to China yourself, visit the suppliers face to face then have a trusted person in China that can manage the relationship or you use the services of an agency who can do it for you (there are plenty of such agencies many of whom are foreign owned and fully reputable). Due to the capitation level in this particular transaction, the first option may not be commercially viable but certainly would if you are considering further business with China.

I am afraid that it is the old chestnut again! The guanxi element. Chinese people forge relationships (especially in business) through face to face contact and friends of friends. That is because of the level of dishonesty, cheating and back stabbing that occurs here for sure!

First you must explain the concept of 'fraud' to Chinese businessmen.

Alibaba is Fraud Central - I'm sorry you found out the hard way.

I'm afraid Mr. Tibbles is correct.

you must contact alibaba so it dosnt happen to some else and what was the item u purchased and the name of the company

Alibaba - China is just what the story is about, 40 thieves, only its no longer 40 it's grown to 400 million +. It is reckoned that around 60-70% of Alibabas advertisers are in the den of thieves, scammers, cheats, and liars. It is also openly known that most of the employees at Alibaba are happy to except bribes to delete bad comments, remarks and feedbacks. They are even more happy to exaggerate the star rating for a slighty higher fee, which of course the so-called suppliers can themselves do. Gold supplier rating means nothing. My wife is a Chinese business woman and only this morning informed me she had been cheated, and she even paid a visit to the so-called wholesalers in [Gz] Guangzhou. Alibaba is business, they don't care who is there to cheat. Sorry to hear about your experience however count your losses and learn the lesson. Welcome to China.

The best answet from you  : I sugest you pay an investigation company ( there are many in China that work 100% legal) and they will find the person together with the police. You can search for this type of company in google ( for exemple : Beijing investigation company) or other city. Contact them, ask them how much cost to take the case and they will find it . They have lawyer also, they can also put you face to face in instance with the person who made fraud to you. They even can do a backgroud of that person and find how many scams he did. Don't lose money on lawyer only,  they will not helo much, but an investigator can do everything .

Good luck !

Do what I told you . Don't trust Alibaba anymore, they have big relationship in China goverment and they will go for free and you will lose other money for nothing...  just search an investigation company . They will tell you also how long will take the case . It is really effective. Important is to find the person who did fraud, not to try to blame Alibaba , Alibaba will do nothing because Alibaba has a profit already from persons as this one who did fraud to you... and if they allow this kind of persons in their website to register, be sure they have big connections, strong connections in Chinese goverment. So , hope my info helped you take this decision. 

As all have said, avoid Alibaba.  If you can use taobao, then use taobao instead.  taobao has a feature of payment-upon-inspection -- you receive the goods, you inspect them and if all is in order, your money is then released to the supplier.

I am only curious, however, as to what you were buying and to where it was going to be shipped.   There may be other factors at play here, too.

Alibaba must be just living up with its hiSTORY.Taobao has to be the best option for online shopping, I'm not sure about for other transactions, though. Just in case you want to bang your head on the wall one more time, make sure that you learn how to think, talk and fart like the businessmen here. In china, fraud is part of the norms. I just watched the movie "Idiocracy", damn, I'm so afraid now.