'TikTok Legend' ByteDance Chairman Zhang Yiming Resigns... More Chinese Founders Leaving

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Zhang Yiming, the founder of ByteDance, the parent company of TikTok, has stepped down from his position as chairman. Analysts suggest that this trend of major corporate founders resigning from chairman roles is spreading amid increasing regulatory pressure from the Chinese government on domestic companies.

On the 3rd, Bloomberg reported that Zhang resigned from his position as chairman of ByteDance.

Zhang had already stepped down from his role as CEO in May.

According to sources familiar with the matter, Zhang plans to entrust the company to professional management and remain involved in ByteDance’s long-term strategy.

The news of Zhang’s resignation comes as the Chinese government intensifies regulatory pressure on its major corporations.

Due to this regulatory pressure, ByteDance’s ongoing plans for an initial public offering (IPO) have reportedly encountered setbacks.

ByteDance began preliminary preparations for an IPO in April, but the process has been delayed due to the Chinese government’s strengthened corporate regulations.

In particular, just two days after Didi Chuxing, China’s largest ride-sharing company, successfully listed on the U.S. stock market in June, the Chinese government launched an antitrust investigation into Didi, causing its stock price to plummet.

Furthermore, the Chinese government is emphasizing the principle of “common prosperity (共同富裕),” aiming for wealth distribution among all citizens, and is stressing the social responsibilities of large corporations. As a result, founders who have amassed significant wealth through rapid corporate growth are stepping down from frontline management roles under the pretext of fulfilling social responsibilities.

In fact, when explaining his resignation as CEO in May, Zhang stated, “I have not yet achieved sufficient results in the area of social responsibility,” which is interpreted as government pressure playing a role in his decision to step down.

Another Chinese video platform company, Kuaishou’s founder Su Hua, also announced last week that he would relinquish his CEO position. Additionally, Liu Qiangdong, chairman of JD.com, one of China’s two largest e-commerce companies, declared in September that he would resign from all board positions and focus solely on the company’s long-term strategic planning.

This content was produced with the assistance of AI translation services.