A company operating budget-friendly online marketplaces such as Temu and Pinduoduo is increasing its efforts within a government-supported development area—referred to as a "city of the future" in official statements—several months following an extensive food safety regulation sweep during which the e-commerce firm faced its largest fine yet and was charged with hindering regulatory actions.
By the end of June, PDD Holdings employed over 600 people at its facility in the Xiongan New Area, becoming the biggest private internet firm within the development zone, as reported by the Chinese news platform Jiemian. Positions encompass mid-level operational tasks, data analysts, and quality assurance experts.
PDD established a new company in Xiongan at the end of May, equipped with 500 million yuan (US$73.7 million) in funding, and has subsequently been actively promoting its dedication to the region.
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The firm initiated a recruitment campaign designed to generate over 5,000 local positions. By mid-June, PDD reported that its initial group of 150 workers had finished their orientation process, mostly hailing from the Beijing-Tianjin-Hebei area. This step supports Xiongan’s designated function as an important location for relocating non-capital activities from Beijing, as the government aims to enhance economic integration within the region.
The executive president of PDD, Zhu Zheng, convened with local authorities in Xiongan during mid-June and finalized the Digital Services Strategic Cooperation Framework Agreement, as reported by the Xiongan government website. Shortly after, PDD acquired an office complex in Xiongan from China Power Engineering Consulting Group, representing the firm's initial publicly announced real estate acquisition in the area. The company anticipated relocating staff to the facility by late July.
The PDD's noticeable dedication to Xiongan comes after a time of intense conflict with Chinese authorities.
In April, the Administration of Industry and Commerce Market Supervision Bureau National Administration for Market Regulation Administrative Department for Business Oversight General Office for Industrial and Commercial Management The SAMR levied fines and seizures totaling 3.6 billion yuan against seven platforms managed by PDD, Meituan, JD.com, Alibaba, and ByteDance due to "ghost-food-delivery" establishments. Pinduoduo, which operates as PDD within China, faced the largest fine of 1.52 billion yuan. Alibaba holds ownership of the South China Morning Post.
The issue became more severe due to claims that PDD hindered the inquiry. China Quality Daily, a publication under SAMR oversight, along with Xinhua reported that an enforcer sustained injuries in a confrontation at the firm. The accounts also claimed that an employee ingested a message intended to prevent another worker from speaking during an inspection.
Regarding Xiongan, PDD's entry arrives at a pivotal time, as the envisioned "city of the future" has long faced questions regarding whether it could draw genuine companies, employment opportunities, and inhabitants.
During March, President Xi Jinping emphasized the significance of industrial growth during his fourth trip to the region, where he visited China Huaneng Group, one of the initial major centrally owned enterprises (SOEs) that moved their main office to Xiongan. As reported by Xinhua, since 2023, the count of new central SOE organizations set up in Xiongan has almost tripled, reaching over 400.
According to formal proposals, Xiongan is anticipated to become essentially evolved into a contemporary socialist metropolis" "in essence transformed into a modern socialist urban center" "fundamentally become a modern socialist town" "effectively turned into a current socialist city" "mainly developed into a present-day socialist municipality by 2035.
The actions taken by PDD mirror a previous surge by Chinese online communities into Xiongan following the region's introduction in 2017. Companies such as Alibaba, Tencent, Baidu, and JD Finance established local offices or formed alliances, yet numerous initiatives have resulted in minimal long-term engagement, employee recruitment, or business operations.
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The article was first published on the South China Morning Post (www.scmp.com), a top-tier news outlet covering developments in China and Asia.
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