China regulatory update: enforcement trends in the platform and digital economy
In 2026, Chinese regulators have intensified scrutiny of the platform and digital economy, with enforcement actions and regulatory interventions spanning antitrust, e‑commerce compliance, promotional practices involving new technologies, food safety, and cross‑border transactions in the technology sector.
The following is a summary of key regulatory developments implemented in 2026, highlighting the evolving enforcement priorities of the State Administration for Market Regulation (SAMR) and the National Development and Reform Commission (NDRC).
Recent enforcement actions
Investment into Trip.com
In January 2026, SAMR launched an investigation against Trip.com over alleged antitrust conduct, including predatory pricing and forced exclusivity.
Enforcement against Kuaishou Shop in the live‑streaming e‑commerce sector
On 30 January 2026, SAMR gave details of an investigation into Kuaishou Shop, in which it found multiple serious violations of the PRC E‑commerce Law and related regulations, including failures in information disclosure, charging unreasonable fees to merchants, inadequate consumer safety protection, insufficient handling of IP infringement, publication of illegal advertisements, facilitation of false or misleading promotions, and provision of platform services for illegal wildlife trade. In December 2025, SAMR imposed an administrative penalty, ordering immediate rectification and imposing a total confiscation and fine of RMB 26.6929 million.
SAMR summoned platforms for AI “red envelope” promotions
On 13 February, SAMR summoned seven platform operators, including Alibaba,Tencent, JD.com, Meituan and etc., to address their promotional activities. The companies were instructed to strictly comply with the Anti-Unfair Competition Law and other applicable laws when conducting promotions. The meeting may have been related to the AI “red envelope” promotions launched prior to the Chinese New Year.
Enforcement against seven e-commerce platforms for food safety
On 17 April 2026, SAMR fined seven major e-commerce platforms, including Temu, for food safety violations, a total of RMB 3.6 billion. The platforms failed to check the licences of stores on their apps and allowed "ghost food deliveries" from unverified vendors. The SAMR ordered the platforms to rectify their illegal activities and imposed fines and confiscations. Additionally, the legal representatives of the companies were fined a total of RMB 19.7 million.
NDRC blocked foreign acquisition of AI start up Manus
On 27 April 2026, China’s National Development and Reform Commission stated it was prohibiting the foreign acquisition of the AI start-up Manus and required all the parties to withdraw from the deal. In 2025, Manus moved its headquarter and key employees from China to Singapore, dismissing most of its employees in China, which has been described as “Singapore washing.” Manus then blocked access to its product in China.
Legal implications
Overall, these developments reflect an increasingly stringent and integrated regulatory approach to platform and digital economy businesses in China, with a strong focus on platform accountability and fair competition. Enforcement actions against Kuaishou Shop and major e‑commerce platforms for food safety violations emphasises how regulators expect platform operators to exercise effective oversight over third‑party merchants and activities, with compliance failures giving rise to financial penalties and personal liability for management. SAMR’s summoning of leading platforms over AI‑driven “red envelope” promotions underscores that innovative or technology‑enabled promotional practices remain subject to strict scrutiny under the Anti‑Unfair Competition Law and related regulations.
In addition, the NDRC’s decision to block the foreign acquisition of Manus highlights that regulatory scrutiny extends beyond traditional e‑commerce and domestic operations. Authorities will intervene in cross‑border transactions involving platform technologies, data‑intensive business models or perceived regulatory arbitrage, even where companies have restructured offshore. Taken together, these trends signal rising regulatory expectations for platform and technology businesses connected with China, calling for proactive compliance planning across competition, consumer protection and cross‑border transaction risk.
Because regulatory and trade environments affecting the platform and digital economy are shifting rapidly, Companies operating in or with China should remain alert and evaluate their compliance strategies and market-entry plans.
For more information on Chinese regulations concerning the platform and digital economy or help with their compliance needs, contact your CMS client partner or the CMS experts who contributed to this article.
