Authorities in Guangzhou have raided Uber’s offices, according to numerous reports.
The company (a popular online car-hire service) is allegedly under investigation for “organizing private drivers to provide unlicensed businesses.”
Authorities consider car-hire services that use private drivers illegal – effectively rendering Uber’s whole business model illegal.
During the raid investigators seized mobile phones and other unnamed equipment.
In a prepared statement, Uber said it "prides itself on providing efficient and convenient transportation options for riders to get from point to point, helping cities reduce congestion pollution.
"We have maintained open channels of communications and are working closely with local authorities in co-operation."
Uber has seen growing popularity in China, where late last year Baidu announced plans to invest up to USD600 million in the company.
Uber launched its China operations just last year and the service is now available in Beijing, Guangzhou, Hangzhou and Shenzhen.
Uber did not respond to That's request for further information at the time of publishing.
[Image via Tech Asia]