China's richest man criticizes parent company Temu, TikTok

Zhong Shanshan complained that e-commerce platforms started price wars, while social media apps spread malicious news about him.

According to the Chinese news site The Paper , during a visit to a locality in eastern China on November 19, Nongfu Springs beverage company Chairman Zhong Shanshan said: "Internet platforms have driven down prices. In particular, Pinduoduo's pricing policy has seriously damaged Chinese brands and industries."

Pinduoduo is the parent company of the e-commerce platform Temu. The company has grown rapidly over the past few years, partly due to its low-cost strategy. At the same event, Zhong complained about the Chinese government's failure to curb this pricing trend. "The government has not intervened. I think they are being irresponsible," he said.

Zhong Shanshan - Chairman of bottled water company Nongfu Spring. Photo: Reuters

China’s economy has slowed recently and job prospects have deteriorated. This has led consumers to look for ways to save money on everything from food to electronics to cars. Brands have therefore offered discounts, including from Western companies that initially targeted the high-end segment. The impact is being felt far beyond expectations.

At another recent event, Zhong also criticized ByteDance’s news app Toutiao and short video app Douyin, which is the Chinese version of TikTok. Zhong said the apps had not done enough to stop malicious rumors about him online.

"I hope Zhang Yiming (founder of ByteDance), Douyin, Toutiao and all the media that have caused me damage due to rumors will apologize. I am still waiting for a sincere apology," he said.

This year has been a tough one for Zhong and Nongfu Spring, China’s largest bottled water company. He was caught in a wave of criticism earlier this year after the death of Zong Qinghou, founder of Nongfu Spring’s rival Hangzhou Wahaha. At the time, some Chinese internet users criticized Nongfu for having Japanese-style products. Others accused the beverage company of using tricks to gain an advantage over Wahaha. The fact that Zhong’s son holds American citizenship also became a focus of criticism.

Nongfu’s sales then plummeted. A price war with China’s bottled water industry further hurt its business. Its shares have fallen nearly 30% since the start of the year, wiping out nearly $15 billion from Zhong’s fortune. He is now worth $53 billion, but remains China’s richest person, according to the Bloomberg Billionaires Index.