The uproar was sparked by a joke made by Chinese actor Li Haoshi in Beijing last week, marking the biggest outrage yet for a form of entertainment that has gained popularity through small shows.
Comedy shows became popular in China during the COVID-19 pandemic as people spent more time indoors to watch them.
The most popular of these was a show produced by Chao Guao Culture Media, the company that was at the center of the current buzz.
Comedian Li shot to fame when someone posted a description of a joke he made on a May 13 broadcast that was deemed insulting to the Chinese military.
Beijing police said on their Weibo account that they are investigating Li.
The Beijing Culture and Tourism Bureau fined Chao Guao 14.7 million yuan ($2.13 million) and banned him from holding performances in Beijing and Shanghai.
“We will never allow any company or individual to use the Chinese capital as a stage to deliberately defame the glorious image of the People’s Liberation Army,” the office said.
Other comedy companies have canceled scheduled shows without giving a reason.
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