JD.com CEO Richard Liu hands over reins of presidency for his e-commerce empire as crackdown on tech titans drags on

Richard Liu Qiangdong said he is giving up more responsibility at the e-commerce giant he founded to focus on rural development

He is the latest tech entrepreneur to give up a leadership position amid Beijing’s crackdown on the sector and a call to contribute to ‘common prosperity’

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Richard Liu, CEO and founder of Chinese e-commerce giant JD.com, speaks before ringing the opening bell at the Nasdaq Market Site building in New York on May 22, 2014. JD announced on Monday that Liu is stepping down as president of his company, but retaining his CEO and chairman positions. Photo: Reuters

Published: 7:00pm, 6 Sep 2021Updated: 1:36pm, 21 Sep 2021

Richard Liu Qiangdong, the billionaire founder of China’s e-commerce platform JD.com, has given a frontline management position to one of his subordinates to spend more time on long-term strategies and rural development, the company said in a statement.

The Beijing-based online retail giant announced on Monday that Xu Lei, the chief executive of JD Retail, was promoted to president of JD to run “day-to-day operations”. He will continue to report to Liu, who remains chairman and CEO.

Liu’s move comes after other Chinese tech billionaires have recently stepped down from top positions or shunned the limelight amid Beijing’s regulatory clampdown on the sector. By prioritising the development of rural areas, Liu appears to be answering a recent call from Chinese authorities for the wealthy to contribute to “common prosperity”.

Even before the recent regulatory storm, Liu had been keeping a low profile since 2018, when he was briefly detained by police in Minneapolis, Minnesota, over allegations of raping a female student attending the University of Minnesota. The criminal charges against him were eventually dropped, but a civil lawsuit from the student remains ongoing.

Richard Liu was recorded accompanying a University of Minnesota student who later alleged the JD.com founder raped her. Police eventually dropped charges against Liu, saying there was not enough evidence to prove guilt beyond a reasonable doubt. Photo: Minnesota police

Despite the allegations, Liu has remained the undisputed boss of his business empire.

The CEO will now devote more time to “formulating the company’s long-term strategy”, “mentoring younger management”, and “contributing to the revitalisation of rural areas,” the company said in a press release.

JD.com CEO Richard Liu hands over reins of presidency for his e-commerce empire as crackdown on tech titans drags on

Richard Liu Qiangdong said he is giving up more responsibility at the e-commerce giant he founded to focus on rural development He is the latest tech entrepreneur to give up a leadership position amid Beijing’s crackdown on the sector and a call to contribute to ‘common prosperity’

Richard Liu Qiangdong said he is giving up more responsibility at the e-commerce giant he founded to focus on rural development

He is the latest tech entrepreneur to give up a leadership position amid Beijing’s crackdown on the sector and a call to contribute to ‘common prosperity’