cross-posted from: https://lemmy.sdf.org/post/47167958

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At least two fistfights broke out last week between [Temu parent company] PDD Holdings Inc. employees and Chinese regulators who were performing checks at the e-commerce company’s Shanghai premises, according to people familiar with the matter.

The altercations involved PDD staff and officials from the State Administration for Market Regulation, the people said, asking not to be identified discussing a sensitive issue. The SAMR [stands for State Administration for Market Regulation in China] officials were investigating reports of fraudulent deliveries on PDD’s platform, the people said, adding that police made several arrests in the aftermath.

While details of how the fights began weren’t immediately clear, the episode may trigger investor concern about increased regulatory scrutiny of PDD. It’s unheard of for interactions between large Chinese companies and regulators to descend into physical confrontations, even as tensions often run high between the two sides.

The SAMR, an agency with sweeping powers to investigate industries from technology to energy, led a high-profile antitrust probe against Alibaba Group Holding Ltd. in 2020 that culminated in a sector-wide clampdown. Chinese President Xi Jinping’s government has since made a concerted push to show its support for the private sector, including in a meeting between Xi and entrepreneurs such as Alibaba’s Jack Ma in February.

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PDD, better-known as the creator of Temu and the Pinduoduo Chinese e-commerce platform, competes directly with Alibaba and JD.com domestically. Abroad, it’s known as an aggressive online retailer that, along with Shein, has ambitions to become a major player in the US and Europe.

PDD’s rapid growth has drawn regulatory attention not just at home.

Temu’s European headquarters in Dublin were raided by European Union competition watchdogs, amid suspicions the Chinese e-commerce giant may have received unfair subsidies from Beijing. Those unannounced inspections took place last week, according to people familiar with the matter who spoke under condition of anonymity.

PDD just last month warned of a slowdown in an intensively competitive Chinese consumption environment, reflecting an escalating battle in online commerce.