Tag: #metoo

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What tech tycoon Richard Liu’s sexual misconduct case means for China’s #MeToo

One of the highest-profile sexual assault allegations against Chinese business tycoons ended abruptly this past weekend. Liu Qiangdong, the founder of Chinese ecommerce giant JD.com, also known as Richard Liu, has reached a settlement with Liu Jingyao, a former University of Minnesota student who alleged that the billionaire raped her in her apartment in 2018.

The announcement came in a joint statement from the two parties on Saturday, just two days before Mr. Liu was scheduled to face a civil trial in Minneapolis, during which the press would have been allowed to live tweet from the courtroom. The amount for the settlement wasn’t disclosed

The joint statement neither denied nor confirmed Ms. Liu’s claims, saying only that the incident between Mr. Liu and Ms. Liu (unrelated) “resulted in a misunderstanding that has consumed substantial public attention and brought profound suffering to the parties and their families.”

“Today, the parties agreed to set aside their differences, and settle their legal dispute in order to avoid further pain and suffering caused by the lawsuit.”

Some might see the result as yet another instance where powerful figures get to shun legal ramifications using their power and money. But others argue this is already a step forward for China’s beleaguered #MeToo movement. Mr. Liu has previously denied the rape allegations and could have used his financial prowess to defend his purported innocence through the trial. A settlement instead might suggest his silent admission of wrongdoings.

“It’s such a historic moment for the past four-year #Metoo movement in China, as the settlement remains significant for the results of struggle by Jingyao and feminists,” reads a blog post by the Free Chinese Feminist group. “The settlement also reconfirms the facts that have been denied by Liu Qiangdong and JD.com, and recognizes that Liu Qiangdong kept hiding the truth.”

The case has drawn widespread attention in China and many were waiting for the trial to uncover more details of the case against one of China’s wealthiest men, a scenario that would have been nearly impossible in China where sexual allegations have historically been silenced.

Online discussions about the #MeToo case at least seem to be allowed. On the microblogging platform Weibo, the hashtag for the settlement news has accumulated over 40 million views. That’s perhaps unsurprising given that Chinese censors are unlikely to side with an ecommerce boss at a time Beijing is reining in the unfettered power of the internet sector.

Mr. Liu, whose blunt speeches and marriage to an internet celebrity was often the topic of tabloid news, has largely retreated from public life since the case surfaced. In April, the 49-year-old executive stepped down as JD’com’s CEO after founding the online retailer, which is hailed as the Amazon of China, some 24 years ago. He remains the chairman of the firm’s board.

The four-year legal entanglement didn’t seem to wane investor confidence in JD.com. The company’s stock price has nearly doubled to $50 apiece from September 2018 when Mr. Liu first faced the sexual misconduct allegations, though the shares are still down 50% from a high point in February 2021. With a market cap of around $77 billion, JD.com is the 20th biggest company in China at the time of writing.

JD.com hasn’t fared too badly amid China’s tech clampdown overall. Most of the country’s internet giants have lost a substantial chunk of their market cap following a litany of regulations over monopolies, data practices, and more. Alibaba’s stock has shrunk 70% from a high in October 2020 and Tencent’s is down 66% from its peak in February 2021.

Shopify and China’s JD.com team up to capture cross-border sellers

What tech tycoon Richard Liu’s sexual misconduct case means for China’s #MeToo by Rita Liao originally published on TechCrunch

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China roundup: Alibaba’s sexual assault scandal and more delayed IPOs

Hello and welcome back to TechCrunch’s China roundup, a digest of recent events shaping the Chinese tech landscape and what they mean to people in the rest of the world.

A sexual assault case at Alibaba has sparked a new round of #MeToo reckoning in China. Industry observers believe this is a watershed moment for the fight against China’s allegedly misogynist tech industry. Meanwhile, social media operators are still undecided on how to deal with the unprecedented public uproar against the powerful internet giant.

In other news, more Chinese tech companies have delayed plans to go public overseas after Didi’s fallout with Chinese regulators over its rushed IPO, including Tencent’s music streaming empire and one of China’s highest-valued autonomous driving startups.

Call for justice

Just past midnight last Sunday, an Alibaba employee posted on the company’s internal forum a detailed account saying her manager and a client had sexually assaulted her on a business trip. She took the case public after failing to obtain support from her superiors and human resources.

The post quickly made its rounds through China’s social media platforms. People stayed up blasting Alibaba’s ignorance, toxic business drinking, and the pervasive objectification of women in the Chinese “tech industry,” which has grown so far-reaching that it’s just the contemporary corporate world.

A day later, on August 9, Alibaba swiftly fired the alleged perpetrator. Two managers resigned and the firm’s head of HR was given a “disciplinary warning.” Alibaba’s CEO Daniel Zhang said he felt “shocked, angry and ashamed” about the incident and called on the company to work with the police to investigate the case.

This is arguably the most high-profile #MeToo case embroiling a major Chinese tech company by far and one that seems to have beckoned the toughest response from the company involved. Alibaba is formulating company policies to prevent sexual assaults, which surprises many that the global tech behemoth didn’t already have those in place.

The case managed to garner widespread public attention in China thanks to social media. Within the first few hours, it seemed as though discussion around the incident was propagating organically and uncensored on microblogging platform Weibo, in which Alibaba owns a majority stake.

But people soon noticed that despite the severity of the event, it took days before the case climbed to the top of Weibo’s trending chart, a bellwether for the most talked about topic on the Chinese internet. The perceived delay recalls Weibo’s censorship of an extramarital affair involving Alibaba executive Jiang Fan last year.

Talang Qingnian, roughly “Surfing Youth,” a social media column under state paper People’s Daily, blasted in an article:

The slow buildup of discussion again raised suspicion over whether Alibaba has manipulated public discourse.

Ever since the Jiang Fan case, the country’s attitude has been very clear that capital must not control the media.

As the basic infrastructure for truthful news in China, Weibo should not be a tool for any stakeholder to manipulate public opinion.

The article fanned up more public outrage but was soon taken down, likely because its wording was too strong. The Chinese state media apparatus is vast and only a few outlets, such as Xinhua, consistently convey top-level leaders’ official opinions. It’s not uncommon to see the less authoritative state-affiliated publications back down on reports that have cause backlashes. Last week, an article from a state-affiliated economic paper removed a piece calling video games “spiritual opium,” a loaded description that had earlier tanked the stocks of Tencent and NetEase, and republished the article with a softer tone.

Smaller war chests

Regulatory uncertainties have always been flagged as a risk by Chinese companies seeking overseas listings, but it was largely up to foreign investors to decide whether they were worthwhile investments. China’s recent regulatory onslaught on its tech darlings, however, has become a real deterrent for Chinese firms’ IPO dream.

This week, reports arrived that NetEase Music, a popular music streaming service, and Pony.ai, an autonomous vehicle startup last valued at $5.3 billion, have respectively postponed their plans to list in Hong Kong and New York.

Beijing has become warier of its data-rich companies getting scrutinized by U.S. regulators. Last month, the U.S. securities regulator said Chinese companies that want to raise capital in the U.S. must provide information about their legal structure and disclose the risk of Beijing’s interference in their business.

Many Chinese tech firms have learned from Didi’s fallout with the government, which had reportedly told the ride-sharing company to hold off on its listing until it sorted out a data protection framework. Didi went ahead regardless, triggering a government probe into its data practice and tanking its shares, which now stand at $8 apiece compared to $16 around its debut in early July.

Beijing’s crackdown has affected every major player in China’s consumer tech sector, wiping as much as $87 billion off the net worth of the country’s tech billionaires, including Pony Ma of Tencent and Colin Huang of Pinduoduo, according to Financial Times. The government wants “hard tech” like semiconductors and clean energy, so it has made it clear to future entrepreneurs where they should allocate their energy. The new generation of startups is listening now.