Customs in the city of Shantou was informed that illegal purchase of smuggled parrots were found in the city at the beginning of this year.
After five months' investigation, customs officers searched four residences and parrot farms, and captured 10 people involved in the case during an operation on Friday.
Customs officers also seized 198 parrot eggs and 567 live birds, including parrots and toucans.
Investigation showed that a Guangzhou resident, surnamed Ren, has smuggled parrot eggs into China and had those eggs hatched in the provinces of Guangdong and Hunan, and then sold them across the country, since 2017.
Parrots are under key protection in China. Under Chinese law, people smuggling ten or more parrots will be sentenced to at least 10 years in jail or life imprisonment.