When the Party Says Enough: Beijing Steps Into Influencer Drama

When China's most powerful newspaper speaks, everyone listens. This week, People's Daily broke its usual silence on commercial disputes to wade into an unlikely battlefield: a months-long feud between a restaurant chain and a food influencer that's cost the business $71.8 million.

The intervention marks a rare moment when Beijing's top mouthpiece has directly addressed the growing tension between China's influencer economy and traditional businesses – a sign that the Party is increasingly worried about social media's power to make or break companies overnight.

The Feud That Caught Beijing's Attention

The drama began when an influential food blogger criticized Xibei, a popular restaurant chain known for northwestern Chinese cuisine, over its use of pre-made dishes. What started as typical consumer criticism snowballed into a social media storm that the 38-year-old company says will cost it 500 million yuan in losses.

Xibei operates hundreds of stores across China and has built its reputation over nearly four decades. But in today's digital landscape, that legacy meant little against the viral power of a single influencer's complaints.

The restaurant chain's response was clumsy, according to observers, and social media platforms amplified the controversy for engagement. Within weeks, a routine food quality complaint had mushroomed into an existential crisis for the business.

Why Beijing Stepped In

People's Daily published four separate commentaries about the incident since Sunday – an unusual level of attention for what might seem like a minor commercial dispute. The newspaper's intervention reveals deeper concerns about China's digital ecosystem.

"This is typical of the internet era," the first commentary noted. "A prominent internet influencer dominates online public opinion with sensational material while the exposed party responds [unskilfully] and platforms fan the flames to attract attention."

But the real concern emerged in the newspaper's most telling observation: it's "more worrisome that social media posts can plunge a company that has operated for 38 years and runs hundreds of stores into such a crisis."

The commentaries weren't just defending Xibei – they were questioning whether China's influencer-driven economy has become too powerful, too unpredictable, and too destructive for social stability.

The Broader Stakes

For Beijing, this isn't really about restaurant food quality. It's about control and stability in an economy where a single viral post can destroy decades of business building. The Party has spent years trying to rein in tech platforms and internet celebrities, viewing their unchecked influence as a threat to social order.

The Xibei case represents everything Beijing fears about the influencer economy: the arbitrary nature of viral content, the platform algorithms that amplify controversy for profit, and the vulnerability of traditional businesses to digital mob justice.

A Beijing-based political scientist, speaking anonymously, called the commentaries "a U-turn" from earlier media tolerance for consumer rights activism. The shift suggests the Party now sees influencer power as more dangerous than corporate accountability.

What This Means for Business

The intervention sends a clear signal to both influencers and platforms: the Party is watching, and it's not pleased with the current balance of power. Companies like Xibei – traditional businesses with physical footprints and thousands of employees – represent the kind of stable economic foundation Beijing prefers over the chaotic world of viral content.

For international businesses operating in China, the message is equally important. The digital landscape that seemed to favor consumer voices and transparency may be shifting back toward protecting established businesses from online criticism.

Social media platforms now face a delicate balancing act: how to maintain engagement-driving algorithms while avoiding the kind of viral pile-ons that Beijing sees as economically destabilizing.

The Global Context

China's struggle with influencer power mirrors debates happening worldwide about social media's impact on businesses and society. But Beijing's response is characteristically direct: when market forces create instability, the Party intervenes.

This approach contrasts sharply with Western markets, where businesses are largely left to navigate social media storms on their own. The Xibei case suggests China is willing to use state media to rebalance what it sees as an unfair fight between influencers and traditional businesses.