The Chinese government recently summoned Wang Xing, founder of the food delivery company Meituan, to a meeting and cautioned him to remain out of the public eye after he published a controversial poem that rattled markets and ignited a social media uproar. Beijing officials called Wang Xing following the publication of a thousand-year-old poem by the food delivery mogul, which many interpreted as an implicit criticism of the government, as reported by Bloomberg, citing individuals familiar with the matter who said officials warned him to stay out of view, at least temporarily.
The Tang dynasty poem, which describes the burning of books during China’s first emperor, was widely seen as anti-establishment and led to a $26 billion drop in Meituan's shares over two days. The company's CEO later clarified that his post targeted "the shortsightedness of the sector in which the company operates," while some investors linked the incident to the criticisms made by Alibaba Group Holding Ltd. founder Jack Ma against Chinese regulators last year, resulting in an unprecedented crackdown on China's internet sector.
Initially, Meituan's shares more than halved their gains in afternoon trading but recovered to finish up 3.7% on Friday.
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Similar to e-commerce giant Alibaba, Meituan is under investigation by the state's antitrust authority for alleged monopolistic behavior, which some analysts estimate could result in fines exceeding $700 million. One source indicated that officials refrained from taking stricter actions against Wang, as they did not want to give the impression that even minor infractions could lead to severe consequences. The incident occurred less than two months before the Chinese Communist Party prepares to celebrate its centenary on July 1, a politically sensitive time in the country.
Since then, the entrepreneur has remained under the radar, and when Wang published a statement clarifying his intentions on May 9, he suddenly ceased posting on his Fanfou account, a social media platform he created before Meituan. Prior to this controversy, he updated his account at least several times a week. The billionaire—known for being relatively shy and media-averse even before the incident—has not been seen or heard publicly after a brief appearance on Meituan's quarterly earnings call in May. His contribution of a $2.3 billion stake in the food delivery giant to charity—one of the largest single charitable acts during the pandemic—was disclosed through a company press release to the Hong Kong Stock Exchange rather than through a personal announcement.
Beijing is now focusing its efforts on a broader investigation announced in April to determine whether Meituan violated antitrust laws through practices such as coercive exclusivity arrangements. Company executives reported last month that they have formed a dedicated team to work with the officials conducting the investigation, pledging strict compliance with the new guidelines.
Wang's fate contrasts sharply with that of Jack Ma, founder of Alibaba, whose business empire has faced ongoing scrutiny from regulators. The financial giant Ant Group Co. was forced to cancel what could have been a record initial public offering, while Alibaba faced a $2.8 billion fine for antitrust violations, the largest penalty of its kind ever imposed. Jack Ma is also reportedly under pressure to divest some of his media assets, and the prominent entrepreneur has been seen in public only a few times.
