On January 17th, China’s richest man and founder of Nongfu Spring, Zhong Shu Shu, once again updated his social circle by publicly criticizing the four major e-commerce platforms in China. He referred to these platforms as the “meat grinder” of China’s economy and as fleecing the small and medium-sized businesses.
Zhong expressed that these four e-commerce platforms have deprived the public of opportunities beyond the economy, causing many small and medium-sized businesses to lose or have already lost their ability to compete fairly. The unemployment rate is high, and job opportunities are being snatched away by the platforms. Without employment, there is no expectation for the future of the economy from small and medium-sized enterprises.
He bluntly stated, “The elegant expression of the Chinese language has disappeared from the land of China, and the internet is filled with hostility and violence in every corner, shouting and screaming replacing peace of mind! What shall we do? What shall we do!”
Zhong Shu Shu concluded by asking whether these four major platforms are the “calamity” we have invited upon ourselves or a “blessing”? Though he did not name the platforms in his post, the two videos he shared are related to food delivery platforms.
According to previous reports from mainland Chinese media, the well-known food delivery platforms in China include Meituan Waimai, Ele.me, JD Daojia, and Baidu Waimai. Additionally, the four major cross-border e-commerce platforms in China are Shein, AliExpress under Alibaba, Temu under Pinduoduo, and TikTok Store under Bytedance.
Interestingly, this is not the first time Zhong Shu Shu has publicly commented on Chinese e-commerce platforms. Previously, he has openly criticized several internet giants.
In Zhong’s view, companies should be the promoters of enhancing consumer capacity and pricing systems. However, the low-price strategies of e-commerce platforms force businesses to incur losses for survival, and may even covertly lower product quality, ultimately harming not only businesses but also consumers.
On November 19, 2024, during a media exchange in Ganzhou, Jiangxi Province, Zhong Shu Shu mentioned, “I will never do live streaming sales. I believe those companies are plain-type, while mine is vertical; I have roots.”
During the media exchange in Ganzhou, Zhong Shu Shu called out Zhang Yiming, the founder of Bytedance, demanding an apology. He urged Zhang to uphold the rules of business civilization, emphasizing that these rules should apply indiscriminately to everyone, whether strong or weak.
Following the passing of Wahaha founder Zong Qing, Zhong Shu Shu faced online harassment. In response, at the exchange meeting, he stated that some people manipulated algorithms to block news from multiple perspectives. He advocated for the transparency of algorithms, allowing all users to evaluate their meaning. He said, “A lot of evil is caused by humans, especially when using scientific methods, technology, and technical capabilities, the evil caused is greater than that caused by ordinary people.”
Zhong Shu Shu also called out Toutiao and Douyin, asking them not to use the so-called safe haven principle to evade civilized behaviors. He also mentioned the pricing system of Pinduoduo, believing it inflicts tremendous harm on Chinese brands and industries. This is not just a case of bad money driving out good money, but more of an industry orientation. Pricing is industry-oriented, and if the government does not intervene, it is a dereliction of duty.