Zhang Yiming Becomes China’s Richest Person As TikTok Parent Company ByteDance Thrives

Zhang Yiming Becomes China’s Richest Person As TikTok Parent Company ByteDance Thrives

CNN —

China has a new wealth leader, a position now held by the visionary entrepreneur who steered the rise of the widely popular, yet frequently scrutinized, social media app TikTok.

Zhang Yiming, 41, the dynamic co-founder of TikTok’s parent company ByteDance, achieved the top rank in the prestigious 2024 Hurun China Rich List published Tuesday, with his fortune soaring to an impressive $49.3 billion, as detailed by Hurun Inc, a well-regarded research and media organization that ranks the wealthiest individuals in China.

Zhang’s remarkable ascent in wealth comes on the heels of ByteDance experiencing a staggering 30% surge in global revenue last year, reaching a remarkable total of $110 billion, as reported by Hurun.

Since its launch in May 2017, TikTok has skyrocketed to unparalleled global fame, establishing itself as an era-defining social media platform that resonates deeply with youth across continents, while also serving as an inspirational model for other Chinese enterprises aspiring to penetrate US and international markets.

However, TikTok is also contending with a wave of mounting legal challenges in the US, a market in which it boasts nearly 200 million active users, as highlighted by Hurun.

The legislation enacted in April follows years of allegations aimed at TikTok regarding its connections to China, with concerns that such ties could jeopardize the privacy of American citizens by potentially allowing the Chinese government access to personal data. TikTok has vehemently countered these claims, which have emerged amid escalating tensions in the China-US relationship and growing national security anxieties surrounding Chinese tech giants. Additional allegations concerning child safety measures have also been firmly dismissed by TikTok.

Other nations have echoed similar national security worries; India has outright banned TikTok, while Western allies, including Britain, Canada, and Australia, have imposed restrictions on TikTok usage on government devices.

Nonetheless, these regulatory challenges have not significantly impacted TikTok’s escalating global allure among users, who continue to flock to the platform in droves, captivated by its innovative and engaging content.

Zhang, who holds a 20% stake in ByteDance, embarked on this entrepreneurial journey with his college roommate, Liang Rubo, establishing the company in Beijing in 2012. After navigating ByteDance into the echelons of major players in the Chinese tech landscape, Zhang stepped down as CEO in 2021.

ByteDance also owns and operates popular digital powers in China, such as the news platform Toutiao and Douyin, which serves as TikTok’s counterpart in the Chinese market.

Zhang’s ascendance to the pinnacle of the rich list edged out Zhong Shanshan, famously known as China’s “bottled water king,” who had held the top position for three consecutive years, yet still managed to secure the second spot.

Earlier this year, Zhong was met with a torrent of online backlash from nationalists who criticized him for perceived shortcomings in patriotism, a campaign that adversely affected the stock prices of his company.

In third place on the rich list is Pony Ma, the founder of Tencent, a multimedia titan that dominates the realm of messaging and payment services through its ubiquitous WeChat platform.

The total number of individuals featured on this year’s list stands at 1,094, reflecting a decrease for the third consecutive year. This list comprises those assessed to possess a minimum of 5 billion yuan (approximately $700 million) as of the end of August, encompassing individuals residing not only in mainland China but also in Hong Kong, Macao, and the self-governing territory of Taiwan.

Rupert Hoogewerf, chairman of the Hurun Report, attributed this decline to the challenging economic landscape faced by China’s economy and its stock markets.

China is currently grappling with significant economic issues, including a troublesome real estate crisis, soaring local government debt levels, and sluggish consumer spending, all of which have raised global apprehension regarding the stability and future of the world’s second-largest economy.

“The number of individuals on the list has decreased by 12% over the last year, dropping to just under 1100, and it showcases a staggering 25% drop from the high of 2021, when we identified 1465 individuals meeting the 5 billion yuan threshold,” Hoogewerf remarked in a statement.

“This transition also marks a shift where the past stalwarts, notably real estate moguls, are ceding ground to a newer wave of wealth creators encompassing fields like technology, renewable energy, consumer electronics—especially smartphones, e-commerce—particularly in the realm of cross-border transactions, consumer goods, and healthcare,” he highlighted.

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