PDD Holdings expands in Xiongan after record fine

PDD Holdings, operator of Temu and Pinduoduo, is expanding in Xiongan New Area, China's state-backed 'city of the future,' months after a record food-safety fine and regulatory clash. The company bought an office building from Power Construction Corporation of China and plans to add over 5,000 jobs. By end of June, PDD had over 600 employees in Xiongan, making it the largest privately owned internet company there. In late May, it registered a new entity with 500 million yuan ($73.7 million) capital. Executive president Zhu Zheng signed a Digital Service Strategic Co-operation Framework Agreement with local officials in mid-June. The first 150 employees, mostly from the Beijing-Tianjin-Hebei region, completed onboarding. PDD expected to move employees into the new building by end of July. The expansion follows severe tension with Chinese regulators after a record penalty in a food-safety crackdown and accusations of obstructing enforcement.