Title: The Xibei-Influencer Dispute and the Role of Chinese Government in Digital Governance: Implications for Asia’s Evolving Digital Economy
Abstract
This paper examines the 2025–2026 dispute between Chinese restaurant chain Xibei and influencer Luo Yonghao, which escalated into a public relations crisis and prompted intervention by Chinese authorities. The case highlights the power dynamics between online influencers, corporate transparency, and governmental regulation in Asia’s rapidly shifting digital landscape. By analyzing the incident’s progression, public reaction, and policy responses, this study underscores broader implications for digital governance, consumer trust, and corporate accountability in Asia’s growing online economy.
- Introduction
The rise of social media influencers has transformed consumer behavior and corporate accountability, particularly in Asia, where digital platforms dominate public discourse. In 2025, a high-profile conflict between Chinese restaurant chain Xibei and influencer Luo Yonghao exposed tensions between traditional business models, food transparency, and the amplifying power of online criticism. This paper explores how the dispute, which led to significant reputational and financial damage for Xibei, prompted Chinese authorities to regulate influencer-driven debates and safeguard economic stability. It situates the incident within Asia’s broader digital governance trends, emphasizing the interplay between public opinion, corporate responsibility, and state intervention. - Background: Xibei and the Influence of Luo Yonghao
Xibei, a 38-year-old chain specializing in northwestern Chinese cuisine such as grilled lamb and oat noodles, operated 340 outlets nationwide. In September 2025, Luo Yonghao, a Weibo influencer with three million followers, accused Xibei of using pre-prepared meals and inflating prices. Luo’s post resonated with consumers, sparking immediate public backlash. Xibei’s founder, Jia Guolong, responded defiantly, challenging critics to inspect his kitchens—a move widely perceived as dismissive. Subsequent revelations that Xibei utilized frozen ingredients with extended shelf lives (e.g., sea bass, broccoli) further damaged its reputation, as Chinese consumers prioritize freshly cooked meals. By February 2026, the chain had closed 102 (30%) of its outlets. - Analysis of the Incident: Power Struggles in the Digital Age
The Xibei-Luo dispute epitomizes the disruptive potential of influencer culture. Luo leveraged his online clout to amplify allegations of corporate malfeasance, reflecting a broader societal shift toward holding businesses accountable via digital platforms. Xibei’s rigid defense, however, exacerbated public distrust, illustrating the perils of poor crisis management in the age of social media. The company’s reliance on frozen ingredients, while legally permissible in China, clashed with cultural expectations of freshness, underscoring the gap between operational efficiency and consumer sentiment.
This case also reveals the double-edged nature of influencer power: while Luo’s critique initially drove transparency, his prolonged engagement in the feud risked commodifying public outrage for traffic. The lack of regulatory clarity on influencer accountability and corporate responses created a volatile environment, with real-world economic consequences.
- Government Intervention: Regulating Digital Discourse
The Chinese government’s response marked a pivotal moment in digital governance. In January 2026, authorities suspended the Weibo accounts of both Luo and Jia, citing the Cyberspace Administration’s December 2025 guidelines, which prohibited influencers from inciting conflict through personal disputes. Weibo CEO Wang Gaofei publicized these guidelines, urging “organised debates” via traditional media to reduce online hostility.
State media, including People’s Daily, editorialized on the need for corporate and influencer accountability, framing the dispute as a threat to social and economic stability. This intervention reflects Beijing’s strategy to balance free speech with stability, a recurring theme in China’s digital governance. By redirecting contentious debates to traditional media, authorities sought to mitigate viral misinformation and reinforce state-controlled narratives.
- Broader Implications for Asia’s Digital Economy
The Xibei-Luo case offers critical insights into Asia’s evolving digital landscape:
Digital Regulation and Cultural Nuance: China’s response contrasts with Singapore’s legal approach to online defamation and Japan’s collaborative industry guidelines, highlighting regional variations in digital governance.
Corporate Reputation in the Digital Age: The incident underscores the necessity of proactive transparency and crisis management, particularly in cultures where food freshness is paramount.
Influencer Accountability: As influencers increasingly mediate public trust, regulatory frameworks must address ethical responsibilities, balancing freedom of speech with economic stability.
State-Generated Trust: By intervening in the dispute, China demonstrated its role in shaping digital ecosystems to align with national interests, a model likely emulated in other Asia-Pacific nations.
- Conclusion
The Xibei-Luo dispute exemplifies the transformative power of social media in Asia’s digital economy and the challenges it poses to corporate and governmental actors. Chinese authorities’ intervention signals a strategic recalibration of digital governance, prioritizing stability over unfettered online discourse. As Asia’s digital economy accelerates, this case underscores the need for nuanced regulatory frameworks that foster accountability, consumer trust, and sustainable business practices. Future research should explore cross-regional comparisons in digital governance and the long-term cultural impact of influencer-driven activism.
References
Cyberspace Administration of China (2025). Guidelines for Managing Online Disputes (Dec 22).
People’s Daily (2026). Commentaries on Social Media and Economic Stability (Jan–Feb).
Weibo CEO Wang Gaofei (2026). Public Remarks on February 10 Report.
Xibei Corporation (2025–2026). Internal Communications and Public Statements.
Luo Yonghao (2025). Social Media Posts on Sina Weibo (Sept–Jan).