Leading Chinese internet companies, including Tencent, Douyin and Xiaomi, have encountered significant challenges related to corruption stemming from supervisory issues during their rapid expansions. Bribery is rampant between livestream supervisors and channel owners to gain maximum exposure for livestreams, or through false accounts created via fabricated orders and inflated commission rebates. In some cases, the amounts involved can reach tens of millions of yuan, warranting criminal penalties for all parties implicated. To enhance oversight of legal operations in the private sector, the country’s top prosecutor issued a 12-item Opinion in July 2023 aimed at combating rampant corruption within internet platforms. Experts caution that low-level staff have too much unchecked authority over livestream channels, which can foster corruption, ultimately jeopardizing the sustainable development of these companies.
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