Zhong Shanshan, the founder of Nongfu Spring Co. and China’s richest individual, has openly criticized two of the country’s tech giants, PDD Holdings Inc. and ByteDance Ltd., blaming them for a turbulent year that wiped tens of billions from his bottled-water empire’s market value.
During a recent event in Jiangxi province, Zhong accused PDD’s budget-focused platform of disrupting established pricing strategies. “The price system like Pinduoduo’s does great harm to Chinese brands and industries,” he said, according to local reports.
The following day, Zhong demanded a public apology from ByteDance founder Zhang Yiming. He alleged that ByteDance platforms, including Douyin and Toutiao, amplified online vitriol against him. “I hope Mr. Zhang Yiming, Douyin, Toutiao, and all the media that have hurt me personally with rumors will apologize,” Zhong stated in a widely circulated video. “I’m waiting for your sincere apology!”
Zhong’s remarks mark a rare public outburst from the self-made billionaire, who has traditionally avoided direct confrontations. His criticisms come after months of intense scrutiny and online backlash, triggered by comparisons made after the February death of Zong Qinghou, founder of rival Hangzhou Wahaha Group. Allegations targeting Nongfu Spring’s water quality and Zhong’s business practices further fueled the controversy.
The fallout has been severe. Nongfu Spring’s market capitalization has plummeted by over $20 billion since the start of the year. Although Zhong reclaimed his position as China’s wealthiest individual in August, with a net worth of $52.2 billion according to Bloomberg, the damage to the brand and his reputation has lingered.
Adding to the tension, Zhong criticized the Chinese government for its inaction in curbing e-commerce platforms’ low-pricing strategies, which he argues harm both consumers and companies. He also lambasted tech firms for using algorithms to manipulate information consumption, saying, “The harm caused by people using science and technology is more vicious than that caused by ordinary people.”
These remarks come amid an ongoing price war among Chinese consumer brands. Businesses, including Nongfu Spring, have resorted to cost-cutting to appeal to budget-conscious shoppers. Despite introducing a lower-priced water product, Nongfu reported its slowest profit growth in the first half of the year since its 2020 stock market debut.
Known for his disdain for internet-driven commerce, Zhong has remained critical of trends like livestream selling, describing companies engaging in such practices as “businesses with no roots.” He reaffirmed, “I will never do that.”
The dispute underscores the tension between traditional industry leaders and China’s increasingly dominant tech sector, raising broader questions about market dynamics and regulatory oversight.
Featured image courtesy of VnEconomy
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