MCNs in China are required to be more transparent

China’s KOL and influencer economy reached an estimated $32 billion in 2024, up from $18 billion in 2021, according to market data widely discussed on Chinese marketing platforms and the iResearch industry reports. Over 20,000 MCN companies are registered in China, managing hundreds of thousands of content creators across Douyin, Xiaohongshu, Weibo, and Kuaishou. The government and platforms have responded to this scale with tighter transparency rules. Weibo and Douyin now display the names of the marketing agencies (MCNs) managing influencer accounts, a change triggered by the Cyberspace Administration of China (CAC) finding that some MCNs “manipulate influential accounts and fabricate misinformation containing incorrect value orientations.” For brands working with Chinese influencers, this transparency shift changes how to evaluate and select partnerships.

What MCNs Are and Why They Matter

MCNs (Multi-Channel Networks) are agencies that manage social media influencers in China. They handle content distribution, brand partnerships, platform negotiations, and audience analytics. About 40% of Chinese influencers with more than 10 million followers are managed by MCNs, according to CAC data. The top MCNs like Ruhan, Qianxun Culture, and Papitube manage portfolios of hundreds of creators, often with significant production infrastructure and data capabilities behind each account.

For a foreign brand entering China, MCNs are often the most practical route to working with Chinese KOLs at scale. Rather than negotiating with each influencer individually, an MCN relationship can provide access to a curated roster matched to a specific brand category or demographic target.

The New Transparency Rules and What They Mean for Brands

Weibo and Douyin began testing the display of MCN names on influencer profiles after the CAC’s regulatory campaign. The platforms also began showing users’ IP-based locations in April 2022. Douyin’s notice to agencies required MCNs to review contracts with influencers and submit updated partnership status information.

CAC official Zhang Yongjun stated: “Some MCNs manipulate influential accounts and fabricate misinformation containing incorrect value orientations. MCNs are occasionally the originators of online chaos.” The regulator committed to severe penalties for MCNs that publish content that “distorts reality and misleads the public.”

For brands, this matters in two ways. First, it means that working with an MCN now carries a reputation link. If the MCN has a poor regulatory record, that is now visible to users who see your brand promoted on that MCN’s roster. Second, it means that influencer marketing in China is moving toward greater accountability, which is good news for brands that want authentic, earned reach rather than manufactured engagement.

KOL and MCN Market in China: Key Numbers

Metric	Data	Notes
KOL economy value (2024)	~$32B	Up from $18B in 2021
Registered MCN companies in China	20,000+	Wide range in quality and scale
Influencers with 10M+ followers managed by MCNs	~40%	CAC data
Annual KOL marketing spend by brands	$1B+ (est.)	Across platforms
Platforms now displaying MCN names	Weibo, Douyin	Following CAC regulatory campaign
IP location display added	April 2022	Shows users’ region/country

Why KOLs Work in China

Chinese consumers rely heavily on social proof when making purchase decisions. When a brand promotes its own products on its own channels, many Chinese consumers interpret it as biased. A review from a trusted KOL carries a different weight, especially in product categories like cosmetics, food, travel, and fashion where experience and taste are personal.

Chinese KOLs are also more commercially integrated than Western influencers. They post reviews, run livestream sales, host Q&As, and respond directly to followers in ways that build genuine community relationships. The best KOLs are product experts in their category, which is why their recommendations convert at high rates. A beauty KOL recommending skincare to 5 million followers is not just advertising. It is a trusted expert endorsement from someone the audience has followed for years.

How to Work With KOLs on Xiaohongshu (RedNote) in 2026

1. Match KOL category to product category precisely. Chinese KOLs on Xiaohongshu have specific content niches. A food KOL recommending travel gear is less effective than a travel KOL doing the same. The tighter the match between KOL content identity and product category, the more the audience trusts the recommendation.

2. Prioritize KOL accounts with authentic engagement over raw follower count. Xiaohongshu’s algorithm rewards content quality and genuine saves/shares over passive views. An account with 200,000 engaged followers who save and share posts regularly is more valuable than one with 2 million followers and low engagement. Look at save rates and comment quality, not just follower numbers.

3. Verify that the KOL’s MCN is properly registered and has a clean regulatory record. Under the new transparency rules, the MCN managing the account is now visible. Check it. A KOL managed by a poorly regulated MCN can expose your brand to reputational risk if the agency is later penalized by the CAC.

4. Give KOLs genuine brand information and product access, not scripted posts. Chinese KOL audiences can detect inauthentic content. Posts that sound like press releases generate skepticism. The most effective KOL posts are ones where the creator has genuinely used the product and is sharing their real perspective in their own voice.

5. Use a mix of macro, mid-tier, and micro KOLs (KOC – Key Opinion Consumers). A campaign that includes a few large KOLs for reach, several mid-tier accounts for category credibility, and a larger number of smaller KOC accounts for authentic word-of-mouth covers the full funnel. KOCs often have the highest conversion rates because their followers see them as peers rather than celebrities.

How to Work With KOLs on Douyin in 2026

6. Use Douyin’s TopView and Brand Takeover ads to amplify KOL content. When a KOL creates a strong piece of content about your brand, using paid amplification to boost its reach multiplies the investment without requiring additional creative work. Douyin’s ad tools allow precise demographic targeting of the boosted content.

7. Include Douyin live commerce in any serious KOL campaign. Douyin live shopping generated over 1.2 trillion RMB in GMV in 2023. KOLs who run product livestreams for brands convert at significantly higher rates than standard content posts because the live format creates urgency and allows real-time objection handling.

8. Set clear and measurable KPIs before signing any KOL contract. The new MCN transparency rules make it easier to hold MCNs accountable. Agree on specific numbers: views, saves, comment engagement rates, sales tracked through custom discount codes or UTM links. Vague “awareness” campaigns produce vague results.

9. Build ongoing relationships rather than one-off campaigns. Chinese audiences trust KOLs who have consistent, long-term relationships with brands. A KOL mentioning a brand twice over six months is more credible than a KOL who posts once and is never seen with the brand again. Brand loyalty from a KOL signals genuine endorsement.

Example Found on Chinese Web (Translated)

“I started following a skincare KOL in 2021. She recommended a foreign moisturizer. I bought it. It worked. She recommended a cleanser last month. I bought it without hesitation. I don’t know her personally, but I’ve trusted her recommendations for three years. That’s worth more than any advertisement.”

— Xiaohongshu comment from a Shanghai user, 2024, in a thread about how social media influences purchase decisions

FAQ

What is an MCN in China?
MCNs (Multi-Channel Networks) are agencies managing Chinese social media influencers. They handle content, brand deals, and platform relationships. About 40% of influencers with 10M+ followers are MCN-managed. After new CAC regulations, MCN names now appear visibly on influencer profiles on Weibo and Douyin.

How should brands evaluate Chinese KOLs before working with them?
Check the KOL’s category fit, engagement rate (not just follower count), and the MCN managing their account. Under new transparency rules, MCN names are visible. A KOL managed by a poorly regulated MCN carries reputation risk. Ask the MCN for regulatory compliance records before signing contracts.

How much do brands spend on KOL marketing in China?
Estimates suggest over $1 billion annually across all categories. The broader KOL economy including brand partnerships, live commerce, and platform tools is valued at approximately $32 billion in 2024. Costs range from a few hundred dollars for micro-KOC posts to millions for tier-one celebrity campaigns.

Is KOL marketing still effective in China in 2026?
Yes, and the transparency rules make it more effective. Authenticity is increasingly valued. Campaigns using credible, category-matched KOLs with genuine engagement produce strong conversion rates, especially when combined with Douyin live commerce.

We track KOL trends and platform updates on our LinkedIn page. Follow us for practical updates on influencer marketing in China.

We Help Brands Build KOL Strategies That Actually Convert

Most brands that fail with Chinese KOL marketing make the same mistakes: wrong platform, wrong KOL category match, no live commerce component, and no measurable KPI framework. We build KOL campaigns from the ground up with the right MCN vetting, platform mix, and performance tracking. Whether you are entering China for the first time or trying to improve results from an existing program, we can help you spend smarter on influencer marketing in China.

Contact us to discuss your KOL strategy for China.

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Oliver Verot is the founder of Chinese Tourist Agency, with 15 years of experience helping international brands build KOL and social media strategies for the Chinese market across fashion, travel, food, and luxury categories.