The authorities’ recent actions underscore the growing regulatory focus on China Pinduoduo in the nation’s e-commerce sector.
According to sources familiar with the matter, the investigation covers a range of alleged misconduct, including fraudulent shipping practices and tax violations. These events have raised broader concerns about China Pinduoduo and its compliance with regulations.
The intensified scrutiny comes after a December 2025 incident where a conflict between executives and SAMR personnel resulted in police intervention, further complicating matters for China Pinduoduo.
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The dispute previously led to the dismissal of several employees within the company’s government relations department. China Pinduoduo continues to deal with the aftermath of these events.
The large-scale probe has disrupted daily operations at the e-commerce giant. Employees have been required to prioritize inspections and interviews, causing delays in ongoing projects.
Consequently, Pinduoduo’s marketing campaigns planned for the upcoming Lunar New Year have been slowed down.
This development places additional pressure on Pinduoduo. The company had already warned investors in November of facing intensified industry competition and slowing market growth.