– In a rare and candid speech, Zhong Shanshan, China’s richest man and founder of bottled water company Nongfu Spring, has lashed out at online shopping platforms and the Chinese government for perpetuating a culture of cut-throat pricing that has damaged businesses and industries.Speaking during a visit to a county in eastern China on Tuesday, Zhong singled out popular e-commerce site Pinduoduo for criticism, accusing it of hurting businesses with its highly competitive pricing.”
The internet platforms have brought down our pricing system. In particular, Pinduoduo’s pricing system has done great harm to China’s brands and its industries,” Zhong was quoted as saying by state-owned media outlet The Paper.In further remarks that were not widely reported by state media, Zhong also criticized the Chinese government for failing to intervene in the trend.”
The government has not intervened in this industry orientation, and I think the government has been negligent in its duty,” he added, according to a transcript published by Sina Technology.Zhong’s comments come as China’s economy slows and job prospects worsen, leading to a shift in consumption patterns and a rise in discount shopping. The impact has been far-reaching, with discounts and special deals being offered across brands, including Western companies that primarily target premium markets.
Zhong’s remarks are unusually candid for a Chinese business leader, and his criticism of the government is particularly rare. The billionaire’s comments have sparked widespread discussion and debate in China, with many praising his willingness to speak truth to power.Zhong’s net worth is estimated to be $52.2 billion, according to the Bloomberg Billionaires Index, making him China’s richest man.
