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China’s Wealthiest Man Criticizes Tech Giants and Government Inaction in Rare Public Reproach

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China’s richest man, Zhong Shanshan, founder of beverage giant Nongfu Spring, has openly criticized online shopping platforms for triggering price wars that he claims have harmed businesses and industries amid the nation’s economic slowdown.

In a rare and bold statement, Zhong also directed criticism at the Chinese government, accusing it of being “negligent” in addressing the destructive trend of aggressive pricing strategies.

His remarks, made during a visit to a county in eastern China on Tuesday, were quickly censored by state-controlled media, reflecting the highly sensitive nature of such critiques.

Zhong specifically targeted Pinduoduo, a popular e-commerce platform owned by PDD Holdings, for its role in damaging Chinese brands and industries.

“Internet platforms have disrupted our pricing system,” he said, according to the state-owned media outlet The Paper. “Pinduoduo’s pricing model has caused significant harm.

It’s not just a matter of bad money driving out good money—this has become the orientation of entire industries, with pricing dictating everything.”

Public criticism of the government is exceedingly rare among Chinese business leaders, as those who speak out often face repercussions. Zhong’s comments stand out as an unusual and direct rebuke of both corporate and governmental practices in China’s evolving economic landscape.

Pinduoduo has experienced rapid growth in recent years, fueled largely by its aggressively competitive pricing strategies.

During the same press conference where he criticized Pinduoduo, Zhong Shanshan, China’s wealthiest individual, also took aim at the government, accusing it of failing to address this damaging trend.

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These additional remarks, which were not widely covered by state media, were shared through a transcript published by Sina Technology and various videos circulated by news outlets.

“The government has not stepped in to address this industry orientation, and I believe it has been negligent in its duty,” Zhong said.

CNN has reached out to Nongfu Spring and Pinduoduo (PDD) for comment.

A Nation of Budget-Conscious Consumers

Zhong’s remarks echo growing concerns about the impact of shifting consumer behaviors and business practices in China. Platforms like Pinduoduo have thrived by appealing to penny-pinching consumers in an economy marked by slowing growth.

This isn’t the first time a prominent business leader has openly criticized the system. In November 2020, Alibaba co-founder Jack Ma publicly condemned China’s banks and financial regulators. The backlash was swift:

Ant Group, Alibaba’s financial affiliate, was forced to cancel its record-breaking $37 billion IPO, and Ma largely withdrew from public life as Beijing launched a sweeping crackdown on the tech industry.

Among the companies affected by this regulatory tightening was Pinduoduo. Founded in 2015 by Colin Huang, the e-commerce startup has rapidly grown into a major player, leveraging shifts in consumer habits in the world’s second-largest economy. It also shares ownership with Temu, another rising star in online retail.

Zhong’s criticisms highlight the tension between innovation-driven growth and the challenges of maintaining fair market practices in an increasingly competitive landscape.

As China’s economy slows and job opportunities diminish, consumers are tightening their belts, cutting back on everything from groceries to electronics and even cars.

To attract budget-conscious buyers, brands—including those catering to premium markets—have increasingly resorted to discounts and special offers. The ripple effects of this shift have been widespread.

Zhong Shanshan’s recent remarks come at the close of a challenging year for the billionaire. Earlier this year, he faced backlash from nationalist critics who accused him of lacking patriotism. The campaign significantly impacted his beverage company, Nongfu Spring, slashing its sales and driving down its stock value.

According to Bloomberg, this nationalist-driven controversy erased tens of billions from Nongfu’s market capitalization, and by August, it had cost Zhong his title as China’s richest person. He was overtaken by Colin Huang, the founder of Pinduoduo, who remains a major shareholder in the company.

However, Zhong has since reclaimed the top spot on China’s rich list, with an estimated net worth of $52.2 billion, according to the Bloomberg Billionaires Index. Despite his financial recovery, his comments highlight the strains facing both businesses and consumers in China’s shifting economic landscape.

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