Jiaxing Fruit Market Ban on Anhui Probed by Regulators

Chinese market regulators have launched an investigation into a fruit market in Jiaxing, Zhejiang province, after it issued a notice banning its operators from doing business at a newly opened market in Chuzhou, Anhui province — a move that legal experts say may violate China’s Anti-Monopoly Law.

The Jiaxing Market Supervision Bureau confirmed on May 25 that it has “noted this matter and dispatched staff to investigate and handle it,” according to The Paper. The bureau stated that investigation results will be announced subsequently.

The Disputed Notice

On May 22, 2026 — the same day the Chuzhou Fruit Market officially opened — Jiaxing Haiguangxing Market Management Co., Ltd. issued a notice titled “Notice on Strictly Prohibiting Business Activities in the Chuzhou Fruit Market.” The document, which circulated widely online, prohibits all operators at the Haiguangxing Premium Fruit Trading Center in Jiaxing Fruit Market — along with their spouses, children, parents, and affiliated entities — from any form of participation in the Chuzhou market.

Violators face immediate termination of their cooperation agreements, unconditional contract cancellation, revocation of operating rights, and forfeiture of all rent, deposits, and fees.

Impact on Merchants

According to Xie Yayong, General Manager of the Chuzhou Fruit Market, the notice had an immediate chilling effect. “The afternoon the Chuzhou Fruit Market opened, the management of the Jiaxing Fruit Market issued a notice requiring that brands operating in the Jiaxing market cannot appear in the Chuzhou market,” Xie told The Paper. “This notice has had a significant impact in the fruit industry — new merchants dare not register, and dozens of merchants have dismantled their storefronts and withdrawn from the Chuzhou market.”

Xie noted that the Chuzhou market is significantly smaller than Jiaxing’s but can offer merchants a fairer competitive environment. The market has reported the matter to regulators and is awaiting investigation results.

A New Competitor Emerges

The Chuzhou Fruit Market, located in Nanqiao District at the intersection of the Hefei and Nanjing metropolitan circles, represents a major investment by Anhui province. Phase 1 covers 403 mu (approximately 27 hectares) with 260,000 square meters of floor space, built with a total investment of approximately 1.5 billion yuan. Construction began in July 2025 and was completed on April 26, 2026, featuring 800 standardized commercial stalls.

Despite the controversy, 44 nationally renowned fruit brand enterprises and 164 regional leading merchants had registered at the Chuzhou market as of opening day, including brands such as Wangzhanggui, Zespri, Joyvio, and Fruit Port.

Legal Concerns

Lawyer Fu Jian of Henan Zejin Law Firm described the notice as containing “tyrannical clauses” that may violate Chinese law. According to Dahe Bao via QQ News, Fu identified several legal problems: the notice attempts to bind non-contracting parties (spouses, children, parents), exceeding the scope of contractual privity; the forfeiture of deposits and rents likely constitutes invalid standard-form clauses; and if Jiaxing Fruit Market holds a dominant market position, the “choose one” requirement could constitute abuse of market dominance under the Anti-Monopoly Law.

“Merchants, as independent civil entities, enjoy the right to autonomous business operations under the law and have the right to choose to operate in any legal market,” Fu said.

Ownership and Government Ties

The Jiaxing Supply and Marketing Cooperative, a government-affiliated agricultural distribution system, confirmed on May 25 that Jiaxing Fruit Market is a subsidiary enterprise of the cooperative. The cooperative holds a beneficial ownership stake in Haiguangxing through a chain of holdings: the cooperative owns 100% of Jiaxing Nonghe Supply and Marketing Group, which holds 45% of Jiaxing Fruit Market Co., Ltd., which in turn holds 40% of Jiaxing Haiguangxing Market Management Co., Ltd.

The cooperative stated it has been informed of the situation and will “coordinate and urge all parties to resolve the differences as soon as possible,” as reported by Sina Finance.

Broader Context

The Jiaxing Fruit Market, with over 30 years of history, achieved a transaction volume of 621 billion yuan in 2025, making it the largest fruit distribution center in the Yangtze River Delta region. The case echoes antitrust enforcement actions against major Chinese tech platforms: in 2021, Alibaba was fined a record 18.228 billion yuan for requiring merchants to choose between its platforms and competitors, and Meituan was fined 3.442 billion yuan for similar practices.

What’s Next

The Jiaxing Market Supervision Bureau’s investigation will determine whether the notice violates China’s Anti-Monopoly Law or other regulations. The case raises broader questions about competition practices in physical wholesale markets and could set a precedent for antitrust enforcement beyond the digital economy. Merchants caught between the two markets await a resolution, while the inter-provincial dimension — Zhejiang versus Anhui — adds complexity to the regulatory response.