Controversy Surrounding China’s Wealthiest Man Was Coordinated Attack: Analysis

During the CCP's two sessions, China's richest man, Zhong Shanshan, faced a collective online backlash from nationalists like the Little Pinks, potentially becoming the next target of the CCP's crackdown. The picture shows him gesturing during a speech at a press conference in Beijing on May 6, 2013. STR/CNS/AFP

News Analysis

China’s wealthiest citizen, Zhong Shanshan, is the founder and chairman of Nongfu Spring, a bottled water company headquartered in Hangzhou, Zhejiang Province. Mr. Zhong recently found himself at the center of a controversy ignited by online nationalists, known as Little Pinks, who accused him of favoring Japan while disrespecting China. This uproar, eclipsing even the attention given to the Chinese Communist Party’s (CCP) Two Sessions, has drawn concerns about the CCP’s involvement in orchestrating distractions to quell dissent and exert control over private enterprises.

Criticism of Mr. Zhong surfaced online after Zong Qinghou passed on Feb. 25. Mr. Zong was the founder of the Hangzhou Wahaha Group, China’s largest food and beverage producer. He was said to have mentored Mr. Zhong during his youth and initial business ventures, which was not true, according to Mr. Zhong. Mr. Zhong was then accused of failure to acknowledge the support he received from Mr. Zong, likening his actions to the unappreciative snake that bit the farmer who saved its life in the fable “The Farmer and the Snake.”

Subsequently, online comparisons were made between the patriotic packaging of Mr. Zong’s Wahaha products and the disparaging imagery associated with Mr. Zhong’s Nongfu Spring packaging, claiming that the latter “insulted China and catered to Japan.” As the unpatriotic attacks surged, the Little Pinks launched a coordinated campaign against Mr. Zhong, urging boycotts of Nongfu Spring products.

As of March 12th, the closing price of Nongfu Spring rose by 1.43 percent on the Hong Kong Stock Exchange. However, since Feb. 28, its stock price fell by 4.8 percent over ten trading days, causing its market value to evaporate by over $2.56 billion.

Orchestrated By The CCP

Analysts believe the CCP had a hand in the attacks against Mr. Zhong and used them as diversion tactics to redirect public focus amidst various unfortunate events during the Two Sessions, including explosions of a city Government Building and a police station building in Jiangsu province and a security breach at Zhongnanhai. The CCP aims to preserve its legitimacy amid mounting economic and political challenges by manipulating public discourse and fostering distractions.

Former Beijing lawyer Lai Jianping recently told The Epoch Times that the invisible hand of the CCP is stirring up the whole trend behind Mr. Zhong’s incident. “This is a typical diversionary tactic employed by the CCP. Whenever they face a crisis, they create distractions to shift attention.”

He highlighted the CCP’s penchant for manufacturing public opinion during crises, emphasizing the carefully orchestrated nature of events like the Nongfu Spring incident. Under the CCP’s tight control, any public opinion at any time is not spontaneously generated by the public but is guided by an invisible hand, inciting and inflaming, with groups like the Little Pinks serving as easily manipulated pawns.

Political commentator Li Yanming, in an interview with The Epoch Times, said, “The signs of manipulation by the CCP in the Nongfu Spring incident are very obvious, it’s a double-edged move.”

He underscored the CCP’s historical pattern of creating and exploiting contradictions to navigate crises. He said currently, the CCP not only faces the most serious economic downturn since the “reform and opening up” but also the biggest political crisis since its establishment, with “officials being corrupt without exception, and the army being made restless by the party leader.” Facing diplomatic tensions with the free world, internal dissatisfaction, and social unrest, the CCP resorts to intensifying societal control and tightly manipulating public opinion to maintain its grip on power.

Mass Movements in China: A Resurgence of Autocratic Rule

According to Mr. Lai, the recent online backlash against Nongfu Spring underscores the perceived necessity for autocratic rule under the CCP leader.

Throughout the CCP’s history, movements to consolidate power, notably exemplified by Mao Zedong’s actions since 1949, especially during the Cultural Revolution, have been a recurring theme. “Once a movement starts, the Chinese people become preoccupied with their affairs; they have no time, energy, or courage to reflect on the country’s political life,” said Mr. Lai. Consequently, such movements serve to bolster the rulers’ sense of security.

Mr. Lai suggests that the CCP’s “Eliminate the Three Evils” campaign echoes the tactics of the Cultural Revolution, serving to fortify the rule of the CCP leader. The three evils refer to Nobel Prize-winning author Mo Yan, Tsinghua University, and Nongfu Spring. By instigating mass movements, attention is diverted away from pressing political and economic issues, thereby mitigating dissatisfaction with government policies and the Two Sessions.

Mr. Li pointed out the parallels between the widespread criticism of Mr. Zhong and the mass criticism tactics employed during the Cultural Revolution. Despite lacking physical arenas characteristic of that era, online spaces have become effective platforms for mass criticism, enabled by precise and refined operations.

Former Chinese Premier Wen Jiabao warned in 2012 that without political reform, the gains of economic reform would be lost, and the Cultural Revolution would reoccur. The current situation seems to validate his words.

China’s Wealth Redistribution: The Ongoing Suppression of Billionaires

In China, a peculiar trend emerges where billionaires who dominate the rich list for three consecutive years within a decade often find themselves targeted for scrutiny and suppression. Figures like Mou Qizhong, Huang Guangyu, and Xu Jiayin have exemplified this pattern, and now Mr. Zhong, who held the title of China’s richest person from 2021 to 2023, finds himself under similar pressure.

Mr. Li contends that Nongfu Spring, under Mr. Zhong stewardship, inevitably becomes a target for CCP suppression as it grows stronger. “The CCP accomplishes dual objectives by controlling public opinion and harvesting the gains of private enterprises,” he remarks.

Speculating on Nongfu Spring’s future, Mr. Li foresees parallels with Alibaba under Jack Ma’s leadership, facing a barrage of CCP scrutiny, infiltration, and potential domination. Despite Mr. Zhong’s efforts to maintain a low profile and concerns about equitable prosperity, including resigning as a legal representative from numerous subsidiary companies in the past year and making wealth separations, he remains ensnared by the “curse” of wealth and influence.

Mr. Li asserts that the CCP’s fundamental ideology is rooted in communism, which inherently involves the appropriation of others’ wealth, particularly during economic crises. The CCP’s tactics of suppressing private enterprises and seizing social wealth are increasingly brazen and reminiscent of mafia tactics.

Mr. Lai adds that besieging Mr. Zhong serves multiple CCP objectives, including extracting funds from the private sector through forced donations amid fiscal challenges. Furthermore, allowing private enterprises to flourish poses a threat to CCP control, necessitating measures to stifle their growth.

“In the face of societal pressure orchestrated by the CCP, Zhong Shanshan will inevitably yield to avoid calamity,” Mr. Lai asserts. “This tactic of ‘attacking the rich and redistributing their wealth’ coerces donations from the wealthy elite under the threat of public backlash.”

Mr. Li contends that under CCP rule, private enterprises are destined to serve as instruments of state control, subject to manipulation and coercion.