Chinese authorities have imposed a 100,000-yuan fine on an operating unit of PDD Holdings, the owner of Pinduoduo and Temu, for failing to submit required tax-related information on merchants and platform workers on time.
Shanghai’s tax authority has fined Shanghai Xunmeng Information Technology, a subsidiary of US-listed PDD Holdings that operates the Pinduoduo platform, for breaching local tax reporting requirements. According to state media, the company failed to submit mandatory information concerning platform operators and employees for the third quarter of 2025 and did not rectify the violation despite receiving a formal notice from regulators.
The penalty of 100,000 yuan (about $14,000) was imposed amid heightened regulatory scrutiny of PDD. The State Taxation Administration said it issued a rectification order in November 2025, requiring the company to correct the violation within a specified period, but the measures taken were not completed within the required timeframe.
The case has also drawn attention following a reported physical altercation last month between PDD employees and market regulators, which received wide media coverage and, according to Bloomberg, resulted in the dismissal of dozens of staff members.
China introduced new regulations in 2025 requiring online platform companies to report tax-related information on merchants and workers operating on their platforms, as part of broader efforts to strengthen oversight of the fast-growing e-commerce sector.
Sources: China Daily, Bloomberg
