China’s Cyberspace Administration Cracks Down on Corporate Defamation and Malicious Online Practices

Exclusive | China Launches Nationwide Crackdown on Corporate Cyber Smear Campaigns

By CNBC AI News Team, May 22

In a move to safeguard corporate integrity and foster a healthier digital ecosystem, China’s Cyberspace Administration (CAC) has unveiled a sweeping two-month campaign targeting malicious online content that undermines business operations. The initiative, part of the broader 2025 “Clear and Bright”系列专项行动, aims to dismantle manipulative practices that erode market confidence and disrupt economic stability.

Four-Pronged Strike Against Digital Sabotage

The regulator outlined four core battlefronts in its war against what it terms “corporate cyber slander”:

1. Organized Defamation & Reputational Attacks

• Fabricating claims about product quality or financial health to damage corporate reputations
• Deploying coordinated “cyber mercenary” networks to amplify false narratives
• Manipulative product reviews driven by undisclosed commercial interests

2. Extortion Tactics Under Digital Guise

• “Pay-to-delete” schemes leveraging threat of negative publicity
• Abusing journalistic privileges to demand protection payments
• Strategic timing of false claims during critical corporate milestones (IPOs, product launches)

3. Malicious Market Manipulation

• Aggregating negative content to drive bearish market sentiment
• Misrepresenting financial disclosures or corporate governance structures
• Resurfacing historical controversies for click-driven monetization

4. Identity Theft & Privacy Violations

• Impersonating executives via fake social media profiles
• Spreading discriminatory rhetoric targeting specific industries/regions
• Intrusive “investigative”直播 disrupting operations under false pretenses

Big Tech’s New Compliance Frontier

Analysts suggest the campaign signals tighter oversight of China’s $1.5 trillion digital content moderation industry. “This isn’t just about cleaning up spam accounts,” notes Li Wei, a Beijing-based regulatory analyst. “It’s a systemic recalibration of how business-critical information flows through China’s digital economy.”

The crackdown comes as Chinese firms increasingly report reputational risks costing up to 9% of annual revenues, according to recent industry surveys. Observers anticipate accelerated adoption of AI-powered content verification tools, potentially reshaping China’s cybersecurity landscape.