JD Founder Richard Liu Steps Down from the $92B Empire

JD.com Inc.’s billionaire founder Richard Liu has stepped down as chief executive officer of the company.

China’s No. 2 online retailer has been one of the few Chinese internet titans to avoid a direct hit from the sweeping champaign to rein in Big Tech as many tech companies are getting pinched by Beijing’s sweeping internet sector crackdown.

Xu Lei, who was recently promoted to president after more than a decade at the company, will now lead the e-commerce giant effective immediately.

Liu’s lieutenant joins JD’s six-member board while Liu remains chairman, the company said in a filing Thursday. Shares closed 3.2% lower in Hong Kong.

Many of China’s most wealthiest entrepreneurs have given up their leading positions at their companies over the years.

Xi Jinping’s administration has focused on arenas from e-commerce to gaming, seeking to curb the growing influence of internet firms.

ByteDance Ltd. founder Zhang Yiming stepped down as chairman last year, months after resigning as chief executive officer of the TikTok owner. Kuaishou Technology founder Su Hua gave his leadership to fellow co-founder Cheng Yixiao. And Colin Huang, who founded e-commerce upstart Pinduoduo Inc., dropped his CEO role in 2020 ahead of Beijing’s crackdown.

Liu had stepped back from day-to-day operations since he was accused of rape in 2018, a charge the billionaire has denied. The leadership reshuffle marks a further retreat from the online shopping empire he founded in Beijing in 2004.

JD’s market valuation has shrunk by nearly 45% from its peak last year to about $92 billion.

Liu will continue devoting his time to guiding the company’s long-term strategies while mentoring younger management, JD said in its statement.

The company added that he will also contribute to the revitalization of rural China — a priority of Xi’s “common prosperity” agenda.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.