In a bold statement that has sparked considerable attention, Zhong Shanshan, China’s richest man and founder of beverage giant Nongfu Springs, has publicly criticized the aggressive price wars led by e-commerce platforms. Zhong directly pointed to Pinduoduo, one of China’s top e-commerce sites, accusing it of causing widespread harm to local brands and industries with its ultra-competitive pricing model. The founder expressed concerns during a recent visit to a county in eastern China, where he shared that “Internet platforms have brought down (our) pricing system,” and Pinduoduo’s tactics “have done great harm to China’s brands and its industries,” according to state-owned media The Paper.
In remarks that are rarely heard from prominent business figures in China, Zhong also criticized the government for what he described as a “negligent” approach in failing to curb the aggressive pricing trends that he says threaten economic stability. Though some of Zhong’s statements were widely reported, parts of his comments on government inaction were censored by state media. However, transcripts and videos shared by other news outlets captured his full message: “The government has not intervened in this industry orientation, and I think the government has been negligent in its duty,” Zhong reportedly added.
Zhong’s outspoken stance mirrors previous tensions between China’s tech industry and the government. In 2020, Alibaba co-founder Jack Ma faced similar scrutiny after criticizing financial regulators, resulting in a major government crackdown on the tech sector and shelving of Ant Group’s $37 billion IPO.
As China’s economic slowdown drives consumers to seek bargains across a range of products, including groceries and electronics, Zhong’s comments highlight ongoing challenges for local brands and high-profile Chinese entrepreneurs. Following a tough year marred by nationalist backlash that hurt Nongfu Springs’ market value, Zhong has reclaimed his spot as China’s wealthiest individual, with a net worth estimated at $52.2 billion according to the Bloomberg Billionaires Index.
Source: Swifteradio.com
