Yousiyi (优思益) scandal spotlights a wider fake‑foreign‑brand problem in China’s e‑commerce

What happened

A push for foreign prestige has a new front. A health‑supplement brand marketed as Australian, Yousiyi (优思益), has been exposed in media reports for allegedly using a dubious Australian registration address — reportedly a local auto repair shop — while selling on Chinese cross‑border channels. It has been reported that major platforms, high‑profile streamers and numerous influencers promoted the product, and that regulators including the State Council Food Safety Office (国务院食安办), the State Administration for Market Regulation (市场监管总局) and the General Administration of Customs (海关总署) have opened inquiries.

Bigger than one brand

This is not an isolated PR stunt. Consumers and journalists say many Chinese sellers brand domestic goods as “imported” — from wheelchairs to beauty devices — to command trust and higher margins. Popular e‑commerce and social platforms such as Pinduoduo (拼多多), Xiaohongshu (小红书) and Douyin (抖音) are frequently cited in these accounts. One well‑known case concerns Hangzhou‑based Ulike (Ulike), which reportedly earlier presented itself as a Korean brand and later marketed a product as Swiss; investigators and local reporting have questioned those origin claims. Why do sellers take such risks? Because the payoff can be huge: industry insiders say some fake‑foreign brands offer streamers 40–60% commissions — an incentive structure that encourages short‑term profit over long‑term credibility.

Structural causes and regulatory response

The phenomenon exposes systemic strains in China’s “interest‑driven” livestream commerce: an intermediary (the streamer) with outsized influence and financial incentives has been inserted between brands, platforms and consumers, creating perverse inducements and driving down quality. Language and information asymmetries make overseas verification hard for ordinary buyers; controlling Chinese search results and paying for heavy promotion can mask a product’s true origin. In response to the Yousiyi allegations, authorities have pledged strict investigation and enforcement to protect consumers and market order. But enforcement alone may not fix an ecosystem tilted by short‑termism and opaque incentives.

Why pretend to be foreign when Chinese manufacturing leads the world? That question — rhetorical but pointed — hangs over the debate. Consumers, platforms and regulators now face a test: curb fakery or let low‑quality, high‑profit fast sellers crowd out trustworthy brands.