Chinese Influencer Agencies Earn Billions as New Law Introduces Broad Bans

China is targeting the agencies behind online influencers as it introduces new rules for a sector estimated to generate about 100 billion yuan, or roughly 13 billion euros, in KOL marketing.

The regulation takes effect Sept. 1 and covers multichannel network agencies that manage influencers and distribute content on platforms including Douyin, Xiaohongshu and Bilibili. Rather than focusing only on individual creators, the rules place registration and compliance duties on the companies representing them.

Unregistered agencies must apply to provincial cyberspace authorities and list multichannel internet information distribution services in their registered business activities. Existing agencies have 30 days after the rules take effect to update their registration. Platforms must check an agency’s qualifications before accepting it and report the relationship to authorities within 30 working days, including when the relationship later changes.

The rules prohibit hate speech, regional discrimination, the profit-driven exploitation of minors and people with disabilities, fake views, likes, followers and ratings, the glorification of crime and disasters, and the organization or encouragement of online bullying. Agencies must appoint a content-management head, maintain a permanent monitoring team and sign contracts defining information-security responsibilities.

Special provisions address minors, including age checks and parental or guardian consent. Livestream shopping agencies must also select products and conduct mandatory checks before broadcasts. If a creator violates the law or platform rules, the agency must immediately suspend or end the relationship and notify the platform.

China had more than 40,000 MCN agencies by 2022, according to iiMedia estimates. They were managing about 100,000 contracted influencers with more than two billion followers across platforms, according to figures linked to Hurun rankings and cited by Chinese business media.