"Can You Do Business When You're Scared?"... Suddenly Losing Contact and Disappearing Chinese Company Executives

Increasing Cases of Disappearances After Losing Contact
Confirmed Detentions by Regulatory Authorities
Chilling Effect on Chinese Business... "Need for System Reform"

Recently, cases of executives at Chinese companies going missing and losing contact have been increasing.

On the 9th (local time), the US Wall Street Journal (WSJ), citing sources, reported that Chen Xiaojie, CEO of DouYu, a Chinese live streaming company listed on Nasdaq, has been out of contact since last month.

The company, in which Chinese tech giant Tencent holds a 38% stake, did not confirm Chen CEO's whereabouts but stated only that "business operations are continuing normally."

Although Chen CEO's whereabouts have not been confirmed, foreign media reported that his disappearance occurred after Chinese regulatory authorities began investigating DouYu.

Earlier, Chinese internet regulators announced that they had launched an investigation into the company regarding content regulations, including pornography, targeting internet streaming platforms.

Douyu homepage of Chinese streaming company.
[Photo by Douyu homepage screen capture]

Additionally, Zhao Bingxian, chairman of Wanhua Pharmaceutical, listed on the Shenzhen Stock Exchange, was confirmed to have been detained by authorities after losing contact.

The company recently disclosed that Chairman Zhao has been detained by authorities and requested cooperation with the investigation.

Earlier, in September, it was revealed belatedly that Xu Jiayin, founder of Chinese real estate developer Hengda (Evergrande), was detained and under investigation.

In February, Bao Fan, a financial magnate and chairman of China Renaissance, disappeared and has not appeared in public. All means of contact, including his mobile phone and social media accounts, have been cut off, and he has not reported to work. Foreign media speculate that he is likely detained as part of the Chinese government's anti-corruption investigation.

Such cases of company executives losing contact or being detained are increasing, casting a chill over the business environment in China.

Foreign media explained, "With the successive disappearances of businesspeople and China's intensified crackdown, the Chinese business community is engulfed in a cold wave," adding, "This is contributing to an unusual outflow of capital."

Professor Chen Zhuo of the University of Hong Kong said, "Many in the business community have now learned their lesson, and some are no longer willing to invest in new ventures," forecasting, "Without substantial institutional reforms toward the rule of law, meaningful economic recovery will be difficult to achieve or sustain."

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