When it comes to entrepreneurship, China’s successful private entrepreneurs should rank among the world’s most resilient.
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To thrive in an environment where they are treated as second-class citizens compared to state-owned enterprises, they must navigate significant challenges: limited access to markets and bank credit, unpredictable government policies, sudden and severe regulatory crackdowns, bureaucrats exploiting power for personal gain, frequent harassment from administrative agencies like health and fire safety departments, and societal and ideological pressures because of their wealth.
However, even the most resilient have their limits. Since April, at least five prominent business leaders in their 50s in Zhejiang, Hubei and Guangdong provinces have reportedly taken their lives by jumping to their deaths. This has sparked concern and soul-searching across China about how to support the beleaguered private sector and protect its entrepreneurs.
Among them, the death of Wang Linpeng, the 57-year-old billionaire chairman of Easyhome, China’s leading home furnishing company, has drawn significant attention. Not only is Easyhome a household name, the circumstances surrounding Wang’s death are particularly disconcerting.
According to company announcements and mainland media reports, Wang died by suicide on July 27, just days after being released by Hubei authorities. On April 17, Easyhome disclosed that Wang had been detained by anti-corruption investigators, with his company shares frozen. On July 23, just days before his death, the company announced that his detention had been lifted and he had resumed his duties.
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The reasons for Wang’s detention remain unclear. However, these tragedies have intensified concerns that local authorities, grappling with budget deficits, are still targeting private businesses through profit-driven law enforcement, effectively turning investigations into money-making operations.