China fines e-commerce firm PDD for tax violations amid probe
Shanghai’s tax authority fined an operating entity of PDD Holdings, the US-listed e-commerce company that runs leading retail platforms Pinduoduo and Temu, citing its failure to comply with local tax requirements, according to a Wednesday report from state news agency Xinhua. Shanghai Xunmeng Information Technology, a PDD subsidiary which operates Pinduoduo, failed to report necessary…
Shanghai’s tax authority fined an operating entity of PDD Holdings, the US-listed e-commerce company that runs leading retail platforms Pinduoduo and Temu, citing its failure to comply with local tax requirements, according to a Wednesday report from state news agency Xinhua.
Shanghai Xunmeng Information Technology, a PDD subsidiary which operates Pinduoduo, failed to report necessary information concerning its platform operators and employees for the third quarter of 2025, the city’s tax authority said, adding the company failed to rectify the issue despite notice from the government.
The 100,000-yuan (US$14,359) fine follows a reported fistfight between PDD employees and market regulators last month, which garnered wide market and media attention and resulted in the firing of dozens of PDD staff members, according to Bloomberg. The financial news outlet had previously reported a special investigation team from several state agencies would be carrying out extensive on-site checks at the company.
PDD did not immediately respond to a request for comment on Wednesday.
“This penalty against PDD has sent a powerful signal that tax compliance in the platform economy has entered a phase of strict and normalised supervision,” said Zhang Yi, founder and chief analyst at market consultancy iiMedia.
Zhang noted that further scrutiny or fines would be likely, as the reported conflict with regulators has drawn attention from multiple government agencies.
“The days of ‘convenience’ or ‘special treatment’ for top-tier companies are over. These platforms need to step up their compliance standards and operational efficiency amid the new regulatory trend,” Zhang said.
