Chinese police have busted more than 540 criminal cases involving counterfeit “special supply liquor,” seizing 260,000 bottles worth 3.7 billion yuan (US$515 million), the Ministry of Public Security said Tuesday.
The crackdown, part of a nationwide campaign code-named Operation Purifying Wind, targets the illegal production and sale of alcohol labeled for exclusive use by government or military bodies.
“Special supply liquor” or Tegong 特供 in Chinese refers to bottles — most often baijiu — bearing labels such as “exclusive supply for [a certain unit]” or “military special supply.” The practice dates to the Yan’an period (1935–1948), when the Chinese Communist Party created a special supply system to ensure senior officials had access to better-quality food and drink during wartime shortages. After the founding of the People’s Republic in 1949, the system became institutionalized and expanded to include tobacco, alcohol, food and other goods.
“The original special supply liquor was custom-made by well-known distilleries for specific institutions and was never sold publicly,” said Feng Lihua, a former executive at the Shenzhen-based liquor chain Guoyang Liquor Store. “Later, some small workshops and brand owners began copying the packaging and fabricating the affiliations. The ‘special supply’ label became overused and turned into a marketing gimmick.”
Most such products today have no verifiable source. “It’s a made-up selling point,” said Dong Huaicheng, owner of Medoc1855 Trading Co., Ltd. in Hebei province.
In one case in Jiaojiang District, Taizhou, police seized 59 types of baijiu labeled “World Expo special supply,” “staff exclusive” and “internal Moutai.” Investigators found the liquor cost just 200 to 300 yuan a case, but was resold for 1,499 yuan a bottle after relabeling.
The State Administration for Market Regulation banned the production and sale of “special supply liquor” in September 2024, defining it as counterfeit and substandard goods. The ban applies to production, sales, advertising, promotion and packaging, and prohibits any false claims of ties to party, government or military institutions.
Officials say such marketing harms the image of state bodies, disrupts market order and misleads consumers.
“Over a decade ago, in smaller cities where information was scarce, the words ‘special supply’ were enough to multiply a bottle’s price several times over,” Feng said. Dong added that the products often carried mid- to high-end price tags with huge profit margins.
While tighter enforcement has shrunk the market, Feng said some sellers have adapted. “Some livestreamers don’t print the words on the packaging anymore — they just hint at it verbally during broadcasts to skirt inspections,” she said.
Discover more from Vino Joy News
Subscribe to get the latest posts sent to your email.
