News Desk
At least two fistfights broke out last week between employees of PDD Holdings Inc., the parent company of Temu, and Chinese regulators conducting checks at the e‑commerce giant’s Shanghai offices, according to people familiar with the matter.
The clashes reportedly involved staff and officials from the State Administration for Market Regulation (SAMR), who were investigating allegations of fraudulent deliveries on PDD’s platforms. Police made several arrests following the altercations, though details of how the fights began remain unclear.
While physical confrontations between regulators and major corporations are virtually unheard of in China, the incident underscores the heightened scrutiny facing Temu’s parent company. Investor concerns are mounting that Beijing may intensify oversight of PDD, even as the government has sought to reassure private businesses of its support.
PDD dismissed the account as “false and bearing no relation to reality,” in a statement to Bloomberg News. SAMR did not respond to requests for comment.
Best known internationally for Temu, PDD has rapidly positioned itself as one of the most aggressive online retailers competing with Shein in the United States and Europe. Temu’s low‑cost, fast‑fashion and household goods model has drawn millions of consumers abroad, but also attracted scrutiny from regulators.
Just last week, Temu’s European headquarters in Dublin were raided by EU competition watchdogs amid suspicions that the company may have benefited from unfair subsidies from Beijing. The unannounced inspections highlight how Temu’s expansion strategy is colliding with regulatory concerns not only in China but across global markets.
Domestically, PDD competes head‑to‑head with Alibaba and JD.com, while abroad Temu has become a household name through aggressive marketing campaigns and ultra‑low pricing. Yet this rapid growth has triggered questions about sustainability, labor practices, and compliance with trade rules.
The company recently warned of a slowdown in China’s consumption environment, reflecting intensifying competition in online commerce. Combined with the Dublin raid and the Shanghai altercations, Temu’s meteoric rise now faces a dual challenge: defending its reputation at home while navigating mounting regulatory hurdles abroad.
