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Two famous Chinese businessmen detained by authorities… Concerns about violation of crackdown laws

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Chen Xiaojie, founder of live streaming platform Douyu
‘China’s Warren Buffett’ Warhua Pharmaceutical Society

The BBC reported on the 7th, citing the Financial Times (FT), that two Chinese technology startups and two famous businessmen, including an investment expert, were detained by the authorities.

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Chinese live streaming site Douyu (斗魚) announced that its founder and president Chen Xiaojie (陳少杰) has not been in contact for several weeks and his whereabouts are unknown.

In addition, Wohwa Pharmaceuticals, owned by Zhao Bingxian, known as China’s Warren Buffett, announced on the 6th that he is being detained and investigated by the authorities. Wohua Pharmaceutical did not reveal why Chairman Zhao Bingxian was detained, but said it was unrelated to the company and that it had not received official notification.

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Meanwhile, Douyu did not issue an official comment after the detention of founder Chen Xiaojie was reported in the media.

Citing anonymous sources, the FT reported on the 7th that Chen Xiaojie was arrested as part of an investigation into Douyu’s pornography and gambling content. Pornography and gambling are illegal in China. Sources said Chen Xiaojie had been out of contact for several weeks starting in October.

Douyu is a major streaming platform in China, with internet giant Tencent as its largest shareholder.

In addition to Chen Xiaojie and Zhao Bingxian, other financial and technology leaders have been detained by Chinese authorities this year, raising concerns about a broader crackdown by the Chinese government.

One of China’s most prominent billionaire bankers, Bao Fan of China Renaissance Holdings, disappeared in February and was later confirmed to be helping authorities with their investigation. Since then, he has not been seen in public.

Also in late 2020, one of China’s most prominent business leaders, Alibaba’s Jack Ma, disappeared from public view for three months after criticizing market regulators.

Source: Donga

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