TAIPEI—Chinese authorities said the actions of a manager with e-commerce giant Alibaba Group Holding Ltd. accused of sexually assaulting a co-worker didn’t rise to the level of a crime, dropping a case that had drawn widespread public attention and sent Chinese tech companies scrambling to implement sexual-harassment policies.

District prosecutors in the eastern China province of Shandong said in a one-line statement late Monday that they wouldn’t pursue the formal arrest of the accused man, Wang Chengwen, despite a determination by police that he had committed an act of “forcible indecency” against a co-worker while on a business trip. It offered no further details.

This post first appeared on wsj.com

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