PDD Fires Government Relations Staff After Fistfight With Regulators
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PDD Holdings Inc. has dismissed several employees from its government relations department following a physical altercation between company executives and Shanghai market regulators earlier this month, Caixin has learned.
The fight occurred at the Chinese e-commerce giant’s Shanghai headquarters on Dec. 3, when local officials, acting on a referral from the State Administration for Market Regulation (SAMR), were carrying out an investigation, sources with knowledge of the matter told Caixin. The situation escalated into a physical altercation, prompting the regulators to call the police. The authorities subsequently penalized several PDD employees, including imposing administrative detention, for obstructing official duties.
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- PDD Holdings fired several government relations staff after a physical altercation with Shanghai regulators during a Dec. 3 investigation, leading to administrative detention for some employees.
- The incident negatively impacted PDD’s stock price, falling 6.48% on Dec. 10 amid rumors.
- PDD faces slowing revenue growth (44% Q3 2024 to 9% Q3 2025) and profitability pressure amid stricter regulatory oversight in China’s platform economy.
- PDD
- PDD, a Chinese e-commerce giant, had several employees from its government relations department dismissed after a physical altercation with Shanghai market regulators at its headquarters on December 3. This incident occurred during an investigation by local officials and resulted in PDD employees being penalized. The company's stock price fell, and its revenue growth has significantly decelerated, with executives warning of potential fluctuations in future profitability.
- PDD Holdings Inc.
- PDD Holdings Inc. recently dismissed employees from its government relations department after a physical altercation at its Shanghai headquarters between company executives and market regulators on December 3. This incident occurred during an investigation by local officials. The company faces slowing revenue growth, with its stock price falling amid these developments.
- Q3 2024：
- PDD Holdings Inc. reported revenue growth of 44%.
- November 2024：
- Premier Li Qiang called for standardized operations, orderly competition, and quality improvement among platform companies at a State Council meeting.
- Late 2024：
- The Chinese government repeatedly emphasized the healthy development of the platform economy.
- Q3 2025：
- PDD Holdings Inc. reported revenue growth of 9%.
- November 2025：
- PDD Executive Director and Co-CEO Zhao Jiazhen noted on an earnings call that growth remains under pressure, referencing Q3 2025 results.
- December 3, 2025：
- A physical altercation occurred between PDD Holdings executives and Shanghai market regulators at PDD's headquarters during an investigation.
- December 10, 2025：
- PDD’s stock price fell 6.48% as rumors of the fight began to circulate.
- December 16, 2025：
- SAMR did not respond to Caixin’s inquiry seeking confirmation and details of the altercation and the investigation.
- December 17, 2025：
- A former employee claimed in a group chat that he and colleagues had been wrongfully dismissed following the December 3 incident.
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