Zhang Yiming, co-founder of ByteDance, TikTok’s parent company, has become China’s wealthiest individual, with a fortune now estimated at $49.3 billion, according to the Hurun Research Institute. The 41-year-old’s wealth surged by 43% from 2023, driven by ByteDance’s strong global performance. Zhang, who stepped down from an active role in the company in 2021, still holds around 20% of ByteDance’s shares.
TikTok’s Global Success Amid Regulatory Pressure
TikTok has risen to one of the world’s most popular social media platforms, despite mounting regulatory scrutiny over its Chinese ownership. The US government has expressed concerns about potential data-sharing with the Chinese state and plans to ban TikTok by January 2025 unless ByteDance divests its ownership. Both ByteDance and TikTok assert their independence from the Chinese government, but pressure continues to mount, particularly in the US.
Despite these challenges, ByteDance recorded a 60% increase in profits last year, further bolstering Zhang’s wealth. Hurun’s Rupert Hoogewerf noted Zhang as the 18th person to become China’s wealthiest in 26 years, highlighting the rapid shifts in Chinese economic leadership compared to the US, which has had only four top billionaires in the same period.
China’s Tech Leaders and Economic Struggles
Zhang isn’t the only tech billionaire on Hurun’s China Rich List. Tencent’s Pony Ma ranked third with a wealth of £44.4 billion. However, many of their competitors struggled this year as China’s economy slowed, with just 30% of the list’s entrants seeing an increase in wealth. In contrast, around 70% saw declines, causing the Hurun list to shrink for the third consecutive year.
The economic slowdown affected industries like green energy, with major setbacks for solar panel, lithium battery, and electric vehicle makers. These industries faced increasing competition, a surplus in production, and concerns over potential tariffs, leading to significant declines in net worth for sector leaders.
Shifts in Chinese Wealth
The recent Hurun data underscores China’s evolving economic landscape. Hoogewerf remarked that 2024 has been a strong year for smartphone brands like Xiaomi, while green energy companies faced a difficult market. Solar panel makers saw their wealth plunge by as much as 80% since 2021, while battery and EV manufacturers experienced declines of up to 50% and 25%, respectively.
The Hurun China Rich List currently features fewer than 1,100 individuals, a drop of 12% from the previous year, highlighting both the economic challenges within China and the resilience of a few high-performing sectors.
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