Chinese tech tycoon Richard Liu of JD.com donates US$2 billion amid Beijing’s pursuit of ‘common prosperity’
- Richard Liu Qiangdong announced during the Lunar New Year holiday that he was donating 62.4 million class B shares to a third-party foundation
- Liu is one of several tech executives to make large charitable donations amid an ongoing campaign to rein in Big Tech and Beijing’s ‘common prosperity’ drive
On Wednesday, the third day of China’s week-long Lunar New Year holiday, JD.com said in an filing to the US Securities and Exchange Commission that it has been notified by its chairman Liu that “he will donate 62,376,643 Class B ordinary shares of the company to a third-party foundation for charitable purposes”.
The company did not elaborate on the details of the charity. Liu will remain as the single largest shareholder of JD.com following the donation.
Under Beijing’s forceful clampdown, China’s tech giants fell in line
Liu, who founded JD.com in 2004, has a net worth of US$15.9 billion, according to the latest figures from the Forbes Real-Time Billionaire List on Wednesday.
Compared with other Big Tech companies, JD.com has faced relatively little impact from China’s crackdown. The company, with US$100 billion in annual revenue, has not been hit by regulators’ antitrust crusade – as Alibaba and Meituan have – or new rules on cybersecurity and data protections, like ride-hailing platform Didi Chuxing.
Liu has been gradually stepping away from the limelight since August 2018, when he was briefly detained by police in the US following allegations that he raped a Chinese student at the University of Minnesota. The criminal charges were dropped after the prosecutors said that there was insufficient evidence.
Liu’s decision to step back is in line with his peers at other companies, who have also been retreating from the front lines. ByteDance’s Zhang and Pinduoduo’s Huang both left their roles as chairman last year. Zhang also stepped down as CEO, which Huang had done the previous year.