Chinese authorities have dismantled a major counterfeit baijiu operation that sold fake “vintage” versions of top brands through livestreaming platforms, with the case valued at about 260 million yuan (US$36 million).
China’s State Administration for Market Regulation said the network was uncovered through a joint investigation by regulators and police in Shanxi and Sichuan provinces.
Authorities said the scheme was led by a couple surnamed Zhao, who controlled an e-commerce company in Shanxi, and a business partner surnamed Pei. The group allegedly outsourced production to unlicensed workshops, using industrial alcohol and food additives to blend counterfeit liquor marketed as well-known brands including Wuliangye, Jian Nanchun and Luzhou Laojiao.
The products were promoted online as “aged” baijiu produced between the 1980s and 2010, often sold at premium prices.
State news agency Xinhua reported that in one livestream, sellers advertised a “1997-aged Wuliangye” at 168 yuan per case. Consumers later found labels bearing near-identical but incorrect characters, designed to mimic genuine branding. Packaging closely resembled authentic products, making differences difficult to detect.
Investigators traced production to a site in Wenshui County, Shanxi province. After more than a year of surveillance, authorities determined that Pei oversaw manufacturing while the Zhao couple handled large-scale online sales.
On Nov. 5, 2025, authorities carried out coordinated raids across Shanxi and Sichuan.
At the production site, officials found crude bottling lines, dozens of storage tanks and strong chemical odours. Finished products were stacked in bulk, alongside scattered certification labels and anti-counterfeiting tags.
At a separate storage location, thousands of cases of counterfeit liquor were seized, including large volumes of imitation products resembling major brands. Investigators also found packaging materials used to artificially age the bottles.
Authorities said livestream hosts used scripted promotional videos and sales tactics to create urgency, including phrases such as “limited quantities” and countdown timers. Sellers often avoided explicitly naming brands, instead using vague references to bypass platform monitoring.
A Sichuan market regulator official said the operation relied on imitation packaging and similar-looking characters to mislead consumers, particularly in fast-paced livestream settings.
Investigators said counterfeit “aged liquor” is easier to produce due to weaker anti-counterfeiting features on older products. In addition, the expiration of packaging design patents has made it easier for counterfeiters to replicate certain brands.
Authorities seized nearly 20,000 cases of suspected counterfeit liquor, more than 700,000 pieces of packaging materials, 14 pieces of production equipment and 41 storage tanks.
Police have summoned 22 people in connection with the case and taken compulsory measures against 11. Two suspects have been transferred for prosecution.
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