An IMGW News Report
China’s wealthiest individual, Zhong Shanshan, founder of Nongfu Spring, has launched an uncharacteristically public critique of the nation’s tech giants and government. In a rare rebuke, Zhong accused online platforms of engaging in price wars that have undermined industries and criticised authorities for failing to intervene in this damaging trend.
Speaking at an event in eastern China, Zhong singled out Pinduoduo, the e-commerce site known for its aggressive discounting strategies. “Internet platforms have dismantled our pricing system,” Zhong remarked, as quoted by state-owned The Paper. He highlighted Pinduoduo as a key disruptor, stating its practices have harmed domestic brands and industries by prioritising cut-throat pricing over quality and innovation.
Such outspoken criticism is unusual for Chinese business leaders, who traditionally avoid direct confrontation with the state. Zhong, however, went further, condemning the government’s failure to regulate the e-commerce sector. “The government has been negligent in addressing this industry orientation,” he said, according to a transcript shared by Sina Technology.
These remarks come against the backdrop of a struggling Chinese economy, where slowing growth and rising unemployment have reshaped consumer behaviour. Platforms like Pinduoduo and its affiliate Temu have capitalised on this trend, offering steep discounts that appeal to cash-strapped shoppers. The resultant pressure has led brands across sectors, including premium Western companies, to slash prices to compete.
Zhong’s critique follows a challenging year for the billionaire. Earlier, he faced nationalist attacks accusing him of insufficient patriotism, a campaign that dented Nongfu Spring’s market value. Bloomberg estimates the episode wiped tens of billions from the company’s capitalisation. Though Zhong reclaimed his spot as China’s richest man in recent months, with a net worth of $52.2 billion, his public stance against both corporate and governmental practices signals a shift in tone from China’s elite.
The echoes of Jack Ma’s ill-fated criticism of regulators in 2020, which triggered Beijing’s crackdown on tech firms, linger over Zhong’s remarks. Ma’s confrontation led to the suspension of Ant Group’s record IPO and his withdrawal from public life. Whether Zhong’s unvarnished comments will provoke similar repercussions remains to be seen.
