Cake Complaint Sparks Major Investigation into China's Ghost Food Vendors

A customer's dissatisfaction with a cake order led to a significant investigation in China, revealing over 67,000 'ghost' food vendors operating without proper licenses. These vendors, which sold more than 3.6 million cakes, engaged in a shadow supply chain where orders were resold to the lowest bidder, compromising food safety. The State Administration for Market Regulation imposed fines totaling 3.6 billion yuan ($528 million) on major delivery platforms like Alibaba and JD.com for failing to ensure vendor compliance. This crackdown is part of a broader effort by Beijing to address unhealthy price competition in the food industry, which has contributed to economic deflation. The investigation highlighted the lengths to which some delivery service employees went to obstruct regulatory efforts.

Key Details: • 67,000 ghost vendors discovered selling over 3.6 million cakes. • Total fines imposed amount to 3.6 billion yuan ($528 million). • Major platforms fined include PDD, Alibaba, and JD.com. • Investigation revealed a shadow supply chain compromising food safety.