It has been reported that Yuehua Entertainment has been penalized by the Chinese government.
According to 'South China Morning Post', EVERGLOW's agency Yuehua Entertainment received administrative punishment for having their Chinese member perform at the Korean military camp. Many suspect that the issue arose from their performances at the camp through the television channel 'KFN', when the group performed for the Korean military audiences in 2016 and in 2019.
Although the report spared further details, the document issued from the Chinese government reads that the penalty has resulted from an action that causes "national and individual defamation." To this penalty, Yuehua Entertainment's headquarters in China declared that the company is "in compete agreement with the government," while its overseas branch in Korea responded with "no comments."
Meanwhile, netizens also suspect that the penalty was caused by EVERGLOW's performance at the military camp through the tvN program 'Soomi's Side Dishes'. In EVERGLOW, Yiren is the only member whose nationality is not Korean.