In China, being one of the richest people in the country isn’t the dream it might be elsewhere. Unlike in the West or India, where billionaires bask in public attention and enjoy their massive wealth, China’s top tycoons are shying away from the limelight. The reason? China’s political climate under President Xi Jinping, where the government’s ‘Shared Prosperity’ campaign has aimed the ultra-rich, making it dangerous to hold the title of “the richest.”
A Game of Hot Potato Among China’s Wealthiest
Last month, Colin Huang, the founder of e-commerce company PDD, briefly became China’s richest man. However, his reign at the top of the rich list didn’t last long. Just days after this news made headlines, PDD lowered its profit estimates, leading to a steep decline in its stock price. As a result, Huang lost $14 billion overnight, quickly losing his position to Shanshan Zhong, the founder of beverage giant Nongfu Spring. But Zhong’s time in the top spot was just as short-lived. His company also released a bleak financial outlook soon after, and he too slid down the list.
This rapid change at the top has sparked conversation on Chinese social media, with many speculating that China’s richest tycoons are deliberately avoiding staying at the top of the rich list to escape scrutiny and potential government action. This sentiment reflects a larger shift in national thinking, as China’s super-rich increasingly try to avoid drawing attention to their wealth.
From “Get Rich” to “Shared Prosperity”
The story of China’s uneasy relationship with wealth dates back to the late 1970s when Deng Xiaoping, China’s leader after Mao Zedong, introduced reforms that encouraged economic growth. Deng famously said, “To get rich is glorious,” encouraging a shift from Maoist ideology that was previously hostile toward wealth creation.
However, there was always an unwritten rule: while getting rich was acceptable, becoming too rich wasn’t. Even as China’s economy boomed, its wealthiest individuals’ fortunes were modest compared to those in smaller countries like Mexico, India, and Nigeria. In the early 2000s, it became clear that billionaires who amassed wealth above $10 billion often found themselves targeted by the government. Many, like those accused of corruption, faced legal troubles that seemed more politically motivated than evidence-based.
The Fear of Being the Government’s Next Target
Today, the fear among China’s wealthiest businesspeople is very real. Since Xi Jinping came to power in 2012, his anti-corruption campaign has focused on the elite, particularly those in public office. As China’s economy slowed down, this crackdown extended to private business, especially targeting tech giants.
One of the most prominent examples of this is Jack Ma, the founder of Alibaba. Once China’s wealthiest man, Ma gave a critical speech about the Chinese government in 2020, which led to an immediate crackdown on Alibaba. The company’s stock price plummeted, Ma fell down the rich list, and he largely disappeared from public life. This marked the beginning of Xi’s ‘Shared Prosperity’ campaign, a government initiative aimed at reducing wealth inequality by reining in the country’s billionaires.
A Chilling Effect on Business and Investment
The growing pressure on China’s ultra-rich has had a noticeable effect on the country’s private sector. Wealthy individuals are leaving China in increasing numbers. In 2022 alone, over 15,000 millionaires left China — more than any other country. For comparison, 4,300 millionaires left India during the same period.
Entrepreneurs are also becoming increasingly cautious about growing their wealth too fast. The private sector, once a key driver of China’s rise as an economic superpower, is now shrinking in influence. Since 2021, China’s stock market has been in decline, and government-owned companies now make up nearly 50% of total market capitalization. Personal wealth in China has also dropped significantly, with the number of billionaires falling by 35% over the past three years. Meanwhile, in the rest of the world, the number of billionaires has grown by more than 10%.
The Contrast with America and India
The situation in China stands in stark contrast to countries like the U.S. and India, where being a billionaire comes with far fewer risks. In America, top tycoons like Elon Musk and Jeff Bezos have used their wealth to launch ambitious ventures, including private space programs. In India, billionaires like Mukesh Ambani can openly display their wealth, from billion-dollar weddings to grand real estate projects.
But in China, becoming too wealthy has become a liability. The country’s richest businesspeople are learning that it’s safer to quietly maintain their wealth rather than top the rich list, where they risk drawing unwanted attention from the government.
A Cautious Future for China’s Billionaires
As the Chinese government continues to promote its ‘Shared Prosperity’ agenda, the country’s wealthiest individuals are increasingly opting to stay out of the public eye. With the crackdown on the ultra-rich showing no signs of slowing down, China’s tycoons are likely to keep a low profile, focusing on preserving their fortunes rather than chasing higher ranks on the billionaire list.
In the new era of Xi Jinping’s China, being the richest person in the country may no longer be a badge of honor — but a burden to be avoided at all costs.
