Besides the real estate sector, 2021 has also been an overwhelming year for Chinese tech companies.
On Dec. 29, Bloomberg reported that the total net worth of China’s top 10 technology tycoons fell by nearly $80 billion, almost a quarter of their total assets.
Colin Huang, the founder of the e-commerce company Pinduoduo, suffered the most significant asset loss. Pinduoduo, once a potential competitor of Alibaba, has had its share values fall by nearly 70%. As a result, Colin Zheng lost $42.9 billion, about two-thirds of his total fortune.
Meanwhile, the founder of Xiaomi, Lei Jun, has had his $14.5 billion of assets disappear this year, ranking second on the list of those tech moguls who took the most significant loss. Alibaba’s Jack Ma, unavailable since the CCP crackdown, had to forgo $12.6 billion of his fortune.
Then there is Cheng Wei, founder of ride-hailing Didi Global, whose 2021 was a year of massive upheaval when the CCP investigated it for its data sharing in the United States.
During June’s debut in the U.S. market, Didi Global quickly saw its share prices soaring to $95 billion, promising Cheng $6.7 billion in stakes. Soon enough, the CCP stepped in and forced the company to delist from the United States, and its values nosedived 60%. Cheng’s fortune was reduced to $1.7 billion.
2021 has also been a threatening year for small and medium-sized businesses in China, the backbone of China’s economy. South China Morning Post reported that in the first 11 months of 2021, 4.37 million of these enterprises went bankrupt. In addition, China had more unlisted companies than newly registered firms for the first time in 20 years.
About the CCP’s cold attack that has impaired its economy, James McGregor, Chairman of Greater China of Encore Global Investment Consultants, said it was to gain control.
According to NTDTV, McGregor said, “The CCP government hopes that these people will be under their control. You [Foreign investors] can’t naively think that you have a residence ability. You can only do business in China with permission, regardless of whether the CCP may benefit from you or not.”