Core Viewpoint - The regulatory scrutiny on Kuaishou's e-commerce operations highlights significant issues within the live-streaming e-commerce sector, particularly concerning false marketing and counterfeit products, which have been exacerbated by the platform's user demographics and content practices [2][3][4]. Group 1: Regulatory Investigation - Kuaishou's subsidiary, Chengdu KuaiGou Technology Co., is under investigation for alleged violations of the E-commerce Law of the People's Republic of China [2]. - The company's core executives, including the legal representative and general manager, are closely tied to Kuaishou Group, indicating a direct link between the management and the ongoing issues [3]. Group 2: Industry Criticism - The live-streaming e-commerce sector faces severe criticism for rampant false marketing and counterfeit goods, with Kuaishou being particularly highlighted due to its user base's limited ability to discern product information [3][4]. - The prevalence of unbranded products on Kuaishou's sales rankings has led to increased consumer complaints, further damaging the platform's reputation [3]. Group 3: Content Ecosystem Challenges - Kuaishou's content ecosystem is deteriorating, with issues such as sexual content and copyright infringement becoming more prevalent, undermining the platform's foundation [15][16]. - The platform's algorithm amplifies low-quality content, as it prioritizes user engagement over content quality, leading to a cycle of producing more sensational and less credible material [16]. Group 4: Growth Anxiety and Strategic Dilemmas - Kuaishou is experiencing growth anxiety, struggling to balance user engagement, content safety, and business expansion amid increasing competition from rivals like Douyin and Xiaohongshu [20][21]. - Despite reporting a revenue increase of 13.1% to 35 billion yuan in Q2 2025, the live-streaming segment shows signs of stagnation, with its contribution to overall revenue declining from 30.1% to 28.7% [18][19]. - The platform faces a dilemma between maintaining short-term revenue through controversial content and ensuring long-term sustainability by improving content quality [22][23].