China banned pyramid schemes and severely cracked down on pyramid schemes;

"MLM" in the sense of administrative regulations; It refers to the behavior that organizers or operators calculate and pay remuneration to the developed personnel on the basis of the number of personnel or sales performance directly or indirectly developed by them, or require the developed personnel to obtain the qualification to join on the condition of paying a certain fee, so as to seek illegal interests, disrupt economic order and affect social stability;

"MLM" in the sense of criminal law: the crime of organizing and leading pyramid selling refers to pyramid selling activities in the name of selling goods, providing services, etc., requiring participants to obtain the qualification to join by paying fees or purchasing goods and services, forming a hierarchy in a certain order, directly or indirectly taking the number of development people as the basis for reward or rebate, luring and coercing participants to continue to develop others' participation, defrauding property and disrupting economic and social order. (criminal law)

Multi-level marketing

According to the Regulations on Prohibition of MLM, MLM refers to the way that organizers or operators develop personnel to calculate and pay remuneration to the developed personnel based on the number of personnel or sales performance directly or indirectly developed by them, or require the developed personnel to obtain franchise qualifications on the condition of paying a certain fee;

Its purpose is to seek illegal interests, disrupt economic order and affect social stability.