Short-video giant Kuaishou expects to break even in 2022 but China is tightening control on live streaming

Kuaishou Technology, operator of China’s second-largest short video-sharing platform, hopes to break even this year, but regulatory risks remain high as Beijing released new restrictions on live streaming.

On Tuesday, Beijing published new guidelines to “further regulate profit-making practices in live streaming and promote the healthy development of the industry”.

Under the new rules, companies will need to report to provincial tax and cyber authorities the basic information of live streamers who make a profit on their platforms, including personal ID and income type.

The guidelines – jointly issued by the Cyberspace Administration of China, State Administration of Tax, and State Administration for Market Regulation – also prohibit exaggerated or misleading marketing practices in live streams. Live streamers who discuss price comparison of products in videos should also show their advice in text to better protect consumers, authorities said.

The move comes as tax authorities have ramped up efforts to regulate the live-streaming industry. Viya, one of China’s top influencers, was fined 1.3 billion yuan (US$204 million) in December for tax evasion.