JD.com CEO Richard Liu cleared in US but Chinese e-commerce giant still faces challenges ahead

Although Chinese billionaire and JD.com chief executive Richard Liu Qiangdong has been cleared of felony rape charges in the US, many analysts say China’s second-biggest e-commerce company faces a challenge to win back the trust and confidence of investors after its shares nearly halved in value in 2018.

US prosecutors announced last Friday that their investigation turned up insufficient evidence to follow through with charges against the 45-year-old founder of Beijing-based JD.com. Liu was arrested in Minneapolis, Minnesota, on August 31 after a woman accused him of rape while he was attending a university business programme in August. Liu was released the next day and returned to China hours later.

“It was determined there were profound evidentiary problems which would have made it highly unlikely that any criminal charge could be proven beyond a reasonable doubt,” according to a statement released by Minnesota’s Hennepin County Attorney’s office.

Liu would have faced a prison sentence of up to 30 years if he was charged and convicted. JD.com has said Liu was falsely accused. The company’s shares plunged nearly 16 per cent in two days of trading on the NASDAQ exchange after Liu’s arrest before falling further.

“We are pleased to see this decision,” JD.com said in a statement on its website.

Liu made the first direct response to the decision on Saturday morning.