China Arrests 40 and Seizes 75,000 Cases of Illicit Liquor in Criminal Networks Bust

China’s national flag flutters in the wind on May 12 in Beijing. (Maxim Shemetov/Pool Photo via AP, File)

China has taken down several criminal networks involved in the production and sale of counterfeit “special-supply” liquor, seizing more than 75,000 cases of illegal products and arresting 40 suspects, according to the State Council’s food safety office.

According to China Daily, officials said the nationwide enforcement campaign targeted products falsely marketed as exclusive liquor supplied to government agencies, the military or other official institutions. The operation was prompted by online monitoring and media reports identifying brands such as Jingzong No 1 and Juntai, which were fraudulently promoted as having official ties.

Investigators found that many of the products were counterfeit baijiu made by blending industrial alcohol with flavoring agents before being packaged and sold as premium spirits, according to China Daily.

Authorities said the crackdown led to the dismantling of organized criminal groups responsible for production and distribution. In total, 75,200 boxes of illicit liquor were seized.

Forty individuals have been detained on suspicion of offenses including false advertising and the production and sale of counterfeit goods.

The State Council’s food safety office said 52 cases have been handled so far, with enforcement actions also targeting upstream suppliers and distributors. Authorities shut down five licensed liquor manufacturers, 36 sales entities, and three illegal production sites, while also investigating packaging, printing, and flavoring companies linked to the scheme.

Regulators additionally flagged widespread online distribution, including 61 e-commerce stores and 78 livestreaming channels accused of using misleading marketing tactics to sell the counterfeit products. All identified listings and promotional content have been ordered removed.

Sun Huichuan, food safety director at the State Administration for Market Regulation, warned that authorities would continue to aggressively pursue violations and urged consumers not to trust claims that alcoholic products are reserved for official or internal distribution channels.