Price Wars and Economic Slump in China #

China’s richest businessman has criticized online shopping platforms for initiating damaging price wars amidst an economic downturn. The founder of a major drinks company voiced concerns over these practices harming a wide range of companies and industries. He also criticized the government for its failure to prevent aggressive pricing trends.

Rarely do Chinese entrepreneurs publicly criticize the government due to potential repercussions. During a visit to eastern China, the businessman openly criticized a popular e-commerce site for disrupting pricing structures, claiming it hurts China’s brands and industries. “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 remarked. The e-commerce site has experienced significant growth due to its competitive pricing strategies.

Further remarks targeted the government’s lack of intervention in the industry, expressing, “The government has not intervened in this industry orientation, and I think the government has been negligent in its duty.”

These comments come amidst a broader economic slowdown in China. Consumers are increasingly budget-conscious, impacting spending on essentials from groceries to electronics. Brands, including Western ones targeting premium markets, are offering discounts and special deals.

His comments emerge after a turbulent period, having faced nationalist criticisms earlier this year. These pressures affected the company’s stock value and sales. The campaign significantly reduced the market capitalization of his company and temporarily displaced him from the top of China’s rich list, though he now holds a net worth of $52.2 billion.