A Chinese entrepreneur who has been openly critical of China’s zero-covid policy is a rarity in his industry. He has openly questioned his peers about business as usual, and called on them to speak out against it. He is one of the few Chinese entrepreneurs who is publicly criticizing the government’s policy, which has locked down hundreds of millions of people over the past few months. Not only have the people in China been locked out, but their companies are also losing revenues and jobs.
The Chinese entrepreneur class is experiencing the worst financial crisis in decades, with the zero Covid policy shutting down cities and keeping would-be clients at home. In the wake of the crisis, Zhou Dangle, a technology entrepreneur and venture capitalist, has questioned his fellow business leaders’ business practices and called for more transparency. His outspokenness has created unease among his associates and has prompted some to tell him to quit. Zhou’s outspokenness has also created unnecessary dangers.
Beijing Stone Group
The founders of the Beijing Stone Group are renowned for introducing a modern concept of business to China. Their company, founded in 1984, quickly grew from a two-room office into a massive conglomerate with more than 40 subsidiaries spanning the People’s Republic, Australia, Japan, and the United States. Despite the nebulous legal status of the Beijing Stone Group, their companies have become some of the most successful and profitable in the world. The group has even established offices in Hong Kong and Singapore.
Didi Kuaidi’s founder has said that the company has a responsibility to protect passengers in three ways: by improving its safety standards, ensuring the reliability of its drivers, and reducing the chance of accidents. But while the firm may have a responsibility to protect passengers, it is not free of risk. Its data-driven approach means that the firm processes over 250 million routing requests every day and collects 50 terabytes of data.
China’s subsidies have exploded in recent years, with some companies receiving as much as five times the amount of what they are worth. These subsidies are often given by regional governments to help struggling businesses keep jobs and the economy humming. For instance, midtier automaker JAC Motors received $55 million in subsidies from August to November, ostensibly to promote the production of environmentally friendly vehicles. However, such subsidies are mainly used to keep companies that otherwise might have ceased production, resulting in excess capacity and inefficient management.