BUSINESS

China Probes Kuaishou’s E-Commerce Subsidiary Over Suspected Law Violations

Published: Sep. 20, 2025 3:53 a.m. GMT+8

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A livestreaming session on Kuaishou to promote food products at an e-commerce company on Sept. 21, 2022. Photo: Bloomberg

China’s market regulator has opened an investigation into Kuaishou Technology’s e-commerce arm over suspected violations of the E-commerce Law, stepping up scrutiny of the fast-growing live-stream shopping sector.

The State Administration for Market Regulation (SAMR) said Friday the probe targets Chengdu Kuaigou Technology Co., a wholly owned subsidiary that runs Kuaishou’s shopping platform and Kuaishou Shops. It did not specify the suspected violations but pledged to “strictly enforce” the law and release findings to the public.

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China’s SAMR is investigating Kuaishou’s e-commerce arm over suspected E-commerce Law violations, targeting its subsidiary Chengdu Kuaigou Technology.
Kuaishou’s e-commerce GMV reached 332.3 billion yuan in Q1 and 358.9 billion yuan in Q2 2025, both up over 15% year on year.
The platform has faced issues with counterfeit goods, noncompliant products, and regulatory penalties, and its shares fell 0.7% after the probe announcement.

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Who’s Who

Kuaishou Technology: Kuaishou Technology is under investigation by China's market regulator for suspected violations in its e-commerce arm, Chengdu Kuaigou Technology Co. This probe targets the fast-growing live-stream shopping sector amidst concerns over false advertising and counterfeit goods. Kuaishou's e-commerce business has shown significant growth, with GMV reaching 358.9 billion yuan in Q2 2025. The company has faced prior issues related to product quality and content violations.

Chengdu Kuaigou Technology Co.: Chengdu Kuaigou Technology Co. is a wholly-owned subsidiary of Kuaishou Technology, founded in 2019. It operates Kuaishou's e-commerce platform and Kuaishou Shops, primarily handling sales from livestream hosts and short-video creators. The company is currently under investigation by China's market regulator for suspected violations of the E-commerce Law.

Tencent Holdings Ltd.: Tencent Holdings Ltd. was convened by the State Administration for Market Regulation (SAMR) in May to discuss stronger oversight of counterfeit goods on platforms. This indicates their involvement in the e-commerce sector and the regulator's efforts to ensure compliance among major players.

Alibaba Group: The article mentions Alibaba Group's Taotian unit as one of the platforms whose leaders were summoned by the State Administration for Market Regulation (SAMR). This meeting in May focused on discussing stronger oversight of counterfeit goods, indicating regulatory scrutiny on major e-commerce platforms, including those operated by Alibaba.

JD.com Inc.: JD.com Inc. (京东) was mentioned as one of the platforms whose leaders were summoned by the State Administration for Market Regulation (SAMR) in May to discuss stronger oversight of counterfeit goods. This indicates that JD.com is among the major e-commerce platforms facing increased scrutiny from Chinese regulators.

Pinduoduo Holdings Inc.: Pinduoduo Holdings Inc. was among the e-commerce platforms whose leaders were summoned by the State Administration for Market Regulation (SAMR) in May (2025). The purpose of this meeting was to discuss stronger oversight of counterfeit goods on their platforms.

Douyin: The provided article does not contain information about Douyin (抖音). It focuses on Kuaishou Technology and its e-commerce operations, mentioning Douyin only once as one of the platforms summoned by SAMR to discuss stronger oversight of counterfeit goods.

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What Happened When

2019：: Chengdu Kuaigou Technology Co. was founded to handle Kuaishou’s e-commerce operations.

2023：: National product checks found unqualified children’s apparel and footwear on multiple platforms, including 120 batches on Kuaishou.

2024：: Kuaishou stated in its 2024 annual report adherence to China’s laws on consumer protection, e-commerce, and product quality, and described building internal compliance systems.

Late 2024：: Police issued a warning to Kuaishou after regulators found illegal information in short videos and failures in youth protection features, citing violations of China’s Cybersecurity Law.

First quarter of 2025：: Kuaishou’s e-commerce GMV reached 332.3 billion yuan ($45.6 billion), up more than 15% year on year.

Second quarter of 2025：: Kuaishou’s e-commerce GMV reached 358.9 billion yuan, up more than 15% year on year.

May 2025：: SAMR summoned leaders from several major platforms, including Kuaishou, to discuss stronger oversight of counterfeit goods.

September 19, 2025：: China’s market regulator (SAMR) announced an investigation into Kuaishou Technology’s e-commerce arm over suspected violations of the E-commerce Law.