Yousiyi Health Supplement Scandal Exposes China's Live-Commerce Supply Chain Crisis as Top Streamers Issue Refunds

A massive consumer fraud scandal involving "Australian Yousiyi" health supplements has triggered full refund commitments from top Chinese livestreamers, including Dong Yuhui's "Walking With Hui" channel, after CCTV investigative reporting exposed the brand as a domestic operation with a fabricated overseas identity.

CCTV's April 1 expose revealed that Yousiyi's claimed "Melbourne factory" was actually an automobile repair station. Products were manufactured domestically in China, while Hangzhou-based marketing firm Suoxiang fabricated the brand's Australian origins and secured fake endorsements from professors and medical doctors.

Yousiyi issued a statement describing itself as "on the verge of collapse," with all accounts frozen and unable to process after-sales service. The company admitted paying Suoxiang 2.3 million RMB across quarterly installments starting in June 2023 for marketing services, but said it never authorized fake academic endorsements or overseas manufacturing claims.

"Walking With Hui" announced it would advance full refunds for all consumers who purchased Yousiyi products through their livestream, pending official investigation results. Actor Michelle Chen's studio also issued an apology.

The scandal, which became Zhihu's top trending topic at 3.61 million views, has reignited debates about supply chain accountability in China's trillion-yuan live-commerce industry.