Chen Wanning, who writes under the pen name Ning Caishen, was arrested in an apartment on Tuesday after a tip-off that he had taken drugs, the Beijing Municipal Public Security Bureau said in a statement.
Police seized a small bag of crystal meth and drug paraphernalia from his desk drawer, it said, adding that his urine sample tested positive for crystal meth.
The 39-year-old confessed to police that he had been taking drugs since December and that he had consumed drugs just before the arrest, state-run Xinhua news agency reported.
He was hailed as a leading figure in China's first generation of online writers and established himself in 2006 with popular martial arts comedy "My Own Swordsman".
Chen is also a regular guest on hit match-making reality show "If you are the one".
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