China’s richest man has hit out at online shopping platforms, accusing them of starting price wars that have damaged a wide range of companies and industries as the country tackles an economic slump.
And in extremely rare remarks that have been largely censored by state media, Zhong Shanshan, founder of drinks company Nongfu Springs, also took aim at the Chinese government, saying it was “negligent” in failing to prevent the trend of cut-throat pricing.
It is very unusual for Chinese businesspeople to take public aim at the government and those who have done so have often faced repercussions.
Speaking on Tuesday during a visit to a county in eastern China, Zhong was widely quoted as taking direct aim at Pinduoduo, criticizing the popular e-commerce site owned by PDD Holdings for hurting businesses.
“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,” he was quoted as saying by state-owned media outlet The Paper. “It is not just that bad money is driving out good money. It is an (entire) industry orientation, and pricing (has become) the industry orientation.”
Pinduoduo has seen huge growth in recent years in part because of its highly competitive pricing.
In further remarks from the same press conference that were not widely reported by state media, Zhong singled out the Chinese government for not doing more to stop 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 and in multiple videos shared by news sites.
