BEIJING — China’s market watchdog has launched a sweeping crackdown on unlicensed “ghost kitchens,” ordering food delivery giants to scrub every unverified listing from their platforms by September 30 or face severe penalties. The State Administration for Market Regulation issued the directive late Thursday, giving platforms like Meituan and Ele.me 60 days to comply or risk fines, account suspensions, and criminal referrals for repeat violations.

The directive targets restaurants that exist only as digital entries on apps—no storefronts, no kitchens, no hygiene inspections. Many operate under borrowed or forged business licenses, siphoning profits while dodging health and safety oversight. In one recent case, regulators found a ghost kitchen in Shenzhen operating under a stolen identity of a licensed noodle shop, serving contaminated dishes traced to food poisoning outbreaks in three districts.

Consumer groups hailed the move as long overdue. “These phantom kitchens have exploited loopholes for years,” said Li Wei, director of the China Consumers Association. “Diners assume they’re ordering from real restaurants, but the reality is far darker—no inspections, no accountability, just profit.” The crackdown follows a viral social media exposé last month showing rats roaming a ghost kitchen in Wuhan that supplied meals to over 500 app users daily.

Meituan and Ele.me, which control over 90% of China’s food delivery market, confirmed they are implementing mandatory verification systems. New listings now require government-issued business licenses, detailed floor plans, and real-time GPS tracking of kitchen locations. Existing vendors have until August 15 to upload documents or be delisted automatically.

Industry analysts warn the crackdown could disrupt supply chains and push smaller vendors offline. “Many legitimate home cooks and micro-restaurants operate in gray areas,” said industry analyst Wang Fang. “They lack the capital for full licensing but serve niche markets. The blanket policy risks throwing the baby out with the bathwater.” The regulator has pledged financial aid and simplified licensing pathways for small businesses caught in the dragnet, but implementation remains unclear.

1. Phase One — Immediate scrubbing of unverified listings by September 30
2. Phase Two — Random inspections of 50% of remaining kitchens by December 31
3. Phase Three
— Full compliance audit with live camera mandates for all kitchens by March 2025

While regulators frame the move as a food safety imperative, critics argue it centralizes power further in the hands of already dominant delivery platforms. “Platforms like Meituan will now act as judge, jury, and executioner over who can sell food online,” said legal scholar Chen Tao. “Transparency and appeal mechanisms are desperately needed.” The State Administration for Market Regulation has not responded to requests for comment on safeguards or penalties for false accusations by competitors.