McDonald's has been ordered to demolish its 30 biggest golden arches around Beijing after being told they are an eyesore.
Beijing City Government said that under regulations taking effect this year as part of the capital's makeover for the 2008 Olympics, companies must remove signboards erected on pavements.
But there is suspicion within the food industry that envy could also be a factor.
McDonald's, which has 81 outlets in Beijing, has been a runaway success since its first branch opened in 1992.
It is particularly popular with children and students, and no Chinese rival has been able to match its formula of instant food, cleanliness, smiling service and a little taste of America.
Cai Weiqian, vice-general manager of Beijing McDonald's, said yesterday it had received legal approval to erect the 30 arches, which carry the company's name in Chinese and English.
'We are a law-abiding company. We will follow the new rules and regulations,' he said. 'But fast food is instant consumption. Signboards to attract customers are very important. About 70 per cent of our business comes from people who see our signs.'