JD.com founder ‘still running’ e-commerce group from overseas

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Richard Liu, the founder of e-commerce giant JD.com, quietly runs the Beijing-based company from London, the latest Chinese tech founder to remain involved after stepping down as CEO.

Liu has spent the past few years running JD.com from abroad, mostly in London, according to multiple people familiar with the matter. His direct reports regularly travel from China to meet with the billionaire, who also spends time in Dubai, Tokyo and Hong Kong, the people said.

They also said Liu, who is the company’s chairman, remained central to the company’s management, making important decisions on issues such as investment strategy and overseas expansion. He is also hunting for deals in the UK, considering a bid for British electronics retailer Currys.

“He still runs the company,” one of the people said.

His continued management of JD.com outside China comes at a time when the company is locked in a fierce market share battle with e-commerce rivals in the country, where it generates most of its revenue.

It also highlights the challenges of succession at Chinese technology companies whose founders are charismatic and well-known figures, even after they nominally hand over leadership.

Liu stepped down as CEO in April 2022, at a time when several Chinese entrepreneurs were fleeing executive roles amid Beijing’s tech crackdown. He was replaced by then-CEO Xu Lei.

The leadership change came months before Liu reached a settlement with a former University of Minnesota student who publicly accused the billionaire of rape in 2018, in a case that drew massive press attention in China and abroad. He has denied the accusations.

Just a year later, JD.com changed its management team again after newly appointed chief Xu “stepped down” from his position, citing “personal reasons,” according to a company statement.

Liu retains the title of company chairman, while current CEO Sandy Xu and other JD.com executives remain in Beijing.

“Sandy is the enforcer, making sure everything stays on budget,” said a person close to the company, while Liu continued to lead the company’s strategy.

Chinese e-commerce companies are increasingly looking overseas for growth as consumption in their home market falls. Liu and his wife, fashion influencer Zhang Zetian, own a property near London’s Central Park. He has been looking for investment opportunities in the U.K. for the past few months.

JD.com, which specializes in electronics and home appliances, has been facing increasing competition in the country from discount rival PDD Holdings. Goldman Sachs analysts estimated that JD.com was displaced by PDD last year as China’s second-largest e-commerce company by gross merchandise revenue, after Alibaba.

JD.com said: “CEO Sandy Xu leads the management team and oversees our daily operations.”

It added: “Mr. Liu is focused on long-term strategy in his role as chairman, and international growth is part of the company’s long-term strategy. Therefore, it is entirely appropriate for him and our management team to spend time in various markets outside of China, activating opportunities, building businesses and assembling the right teams.”

The company’s latest annual report said that “we rely on the expertise and experience of Mr. Richard Qiangdong Liu, our chairman, and our executive officers,” but did not mention Xu by name.

It is not uncommon for founders of Chinese technology companies to remain closely tied to their companies even after their executive duties officially end.

ByteDance founder Zhang Yiming continues to play an active role in the company after stepping down as chief executive in 2021. He relocated to Singapore during the Covid-19 pandemic but remains committed to its long-term strategy, according to people familiar with TikTok’s parent company. ByteDance declined to comment.

PDD founder Colin Huang stepped down as chairman of the company in 2021 but still plays an important role in shaping the company’s strategy, according to people familiar with the matter. PDD said Huang had “no executive responsibilities.”