Nationalist Backlash: China's Wealthiest Businessman Under Fire for Alleged Lack of Patriotism
Zhong Shanshan, the wealthiest entrepreneur in China, is currently under fire from nationalist groups who claim he lacks patriotism. This ongoing campaign has impacted the stock prices of his beverage company and poses a threat to its sales.
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China’s richest man, Zhong Shanshan, is currently under attack by nationalists. They are criticizing him for allegedly lacking patriotism. This campaign has caused a drop in the share price of his beverage company and may also affect its sales.
Zhong and his company Nongfu Spring, the largest bottled water producer in China, are currently facing backlash from online activists. There have been calls for a boycott of Nongfu, which have even caught the attention of state media outlets known for their patriotic stance. This comes at a time when Beijing is encouraging support for private businesses to help boost the economy.
The criticism stems from the recent passing of Zong Qinghou, the founder of Wahaha Group, a major competitor of Nongfu. Zong was a respected nationalist figure who gained recognition for his successful business dispute against French food company Danone around 20 years ago.
His passing led to unflattering comparisons to Zhong and resulted in criticism ranging from perceived Japanese influences in Nongfu Spring product packaging to the American citizenship of Zhong's son - a non-executive director and potential successor in the company.
A Weibo user named "Internationale" expressed disbelief over the fact that Zhong Shuzi, who is set to inherit his father's vast wealth and become the future wealthiest man in China, holds American citizenship.
Online critics have noticed similarities between the carp-shaped designs on Nongfu Spring's brown rice tea drink label and Japan's traditional carp flag koinobori windsocks. They have also shared images and videos online connecting a temple on the label of one of their green tea drinks to Tokyo's Sensoji.
According to a Weibo user named "Internationale," having love and patriotism for one's country is more important than wealth. He stated, "A person without feelings for his country ... no matter how rich he is, is not as good as an ordinary person with a Chinese heart."
Chinese online users accused Nongfu's tea drink of featuring carp-shaped windsocks, which some say look like Japan's traditional carp flag koinobori.
Chinese online users accused Nongfu's tea drink of featuring carp-shaped windsocks, which some say look like Japan's traditional carp flag koinobori.
The nationalists have also highlighted the fact that prominent US investment funds, including Vanguard and BlackRock, are major shareholders of Nongfu Spring.
Another Weibo user commented that the son will eventually manage the company as an American national, but as a Chinese, they only support national brands.
Online boycott calls have been spreading rapidly. In a video, a small shop was shown replacing all its Nongfu bottled water with Wahaha's. Another video captured a supermarket returning a Nongfu freezer displaying its drinks to the company. The viral video on the Douyin platform has received over 300,000 likes.
The online campaign has negatively impacted Nongfu's share price. Since the end of February, its Hong Kong-listed shares have dropped by almost 5%, resulting in approximately $3 billion being shaved off its market capitalization, as calculated by CNN.
Similarly, Zhong has experienced a $2 billion decrease in his personal wealth since March 1, according to Bloomberg's Billionaires Index. Despite this loss, he remains the wealthiest individual in China with a current net worth of $64.5 billion, as reported by the Index.
Calling for calm
Zhong has sought to set the record straight about his reported rivalry with the founder of Wahaha, but has been unable to calm tempers online.
After Mr. Zong's passing, there were many false accusations against me and Nongfu Spring circulating online. This is not what Mr. Zong would have wanted," Zhong shared on March 3 via his company's WeChat account.
He urged netizens not to be swayed by certain online influencers who were attempting to create conflict between the two companies.
“Whether Wahaha or Nongfu Spring, we always insist on the same thing — producing good products for the people,” he said.
CNN has reached out to Nongfu Spring for comment.
However, his statement did not succeed in halting the boycott demands. The patriotism being shown has led state media to come to the defense of privately owned businesses.
During the initial week of March, Zhejiang Daily, the official newspaper of the Communist Party in the eastern region of Zhejiang, released an opinion piece and editorial on WeChat. They encouraged internet users to refrain from criticizing private companies and business owners.
Zhejiang province is where you can find some of China's top private companies like Alibaba (BABA), Geely Auto, Nongfu Spring, and Wahaha.
According to Wei Jiang, former chancellor of Zhejiang University of Finance and Economics, Zong and Zhong are exceptional private entrepreneurs. He mentioned that private enterprises are currently encountering tough challenges and need to be safeguarded.
The editorial in the newspaper emphasized Beijing's commitment to supporting the private sector. It mentioned that the current economic climate is becoming more challenging, transitioning from a positive to a negative trend. Despite this, the editorial stressed the importance of encouraging and supporting private enterprises that are operating within the law. It highlighted the need for all sectors of society to promote the creation of wealth, increased tax revenue, and more job opportunities by not engaging in actions that discourage those in the private sector.
China’s nationalists have recently targeted Nongfu Spring. Additionally, they have been criticizing Mo Yan, the Nobel literature laureate, for supposedly insulting the People’s Liberation Army and China's revolutionary leader Mao Zedong in his novels. They also accuse him of "beautifying" the Japanese army, which invaded China.
Many global and Chinese brands have been caught in the crossfire over the years.
People harvesting cotton at a field in Hami, in China's far west Xinjiang region, in 2011
People harvesting cotton at a field in Hami, in China's far west Xinjiang region, in 2011
Stringer/AFP/AFP/Getty Images
In 2022, Li Ning, a sportswear manufacturer founded by a well-known athlete, faced criticism for releasing new designs that were said to resemble hats worn by Japanese soldiers in World War II. This controversy led to a boycott, causing a significant drop in the company's sales and share price. Within just two days, $2 billion was erased from the company's market value.
In March 2021, several Western brands like H&M, Nike, and Adidas were boycotted by nationalist consumers. The reason behind this boycott was these brands' decision to not use cotton produced in Xinjiang, a western region.
The United States has prohibited the import of cotton products from Xinjiang due to worries that they may have been made using forced labor, although Beijing has refuted these allegations.
In 2012, China experienced anti-Japanese demonstrations following a territorial dispute between the two countries regarding the Diaoyu Islands, known as the Senkaku Islands in Japan.
Protesters were reported to have smashed Japanese cars and vandalized shops selling Japanese goods, as stated by state media. This resulted in a decrease in monthly sales for Japanese carmakers like Toyota and Honda in China.
Reporting on this incident was done by Hassan Tayir.
Editor's P/S:
The recent nationalist backlash against Zhong Shanshan, China's richest man, highlights the complex and often contradictory nature of patriotism in modern China. While the government encourages private businesses to boost the economy, it also faces pressure from nationalists to prioritize Chinese-owned companies. This tension is likely to continue as China's economy grows and its role in the world expands.
The boycott campaign against Nongfu Spring is a reminder that even successful businesses can be vulnerable to nationalist sentiment. Companies that are perceived as being too close to foreign interests or lacking in patriotism may find themselves targeted by online activists. This can have a significant impact on their sales and reputation. As a result, companies need to be careful to balance their global ambitions with the need to maintain a positive image in their home market.
