Zhang Yiming Emerges as Chinas Newest Billionaire US Government Still Seeking to Ban TikTok from America
ByteDance, the parent company of TikTok, has seen its founder Zhang Yiming rise to the top of the Hurun Rich List. According to a CNN report, the 2024 Hurun China Rich List released on Tuesday estimates Zhang’s net worth at $49.3 billion, pushing the founder of China’s bottled water giant Nongfu Spring, Zhong Shanshan, into second place and making Zhang the new richest person in China.
Zhang Yiming’s wealth increase is primarily attributed to the significant growth in global revenue for TikTok, which has gained widespread popularity among young people worldwide, becoming a formidable competitor to Instagram. Hurun’s data shows that TikTok has reached 200 million users in the United States. Despite ongoing controversies and lawsuits in the U.S., even figures like Trump and Kamala Harris have opened accounts to interact with the American public, making TikTok an essential platform for creators and small businesses.
TikTok Faces Pressure to Sell
ByteDance has consistently stated that TikTok operates as an independent international company and is unrelated to Douyin. However, the functionalities within both apps are largely similar. In 2024, according to Statista’s Brand Value report, TikTok’s brand value soared to $84 billion, surpassing Instagram and WhatsApp to become the most downloaded mobile application, with a market valuation reaching $200 billion.
A significant consensus emerged between the Democratic and Republican parties in the U.S. last year, focusing on efforts to either force TikTok out of the U.S. or compel American buyers to acquire it as a U.S. company. In March of this year, President Biden signed a bill giving TikTok 12 months to divest from its Chinese parent company, with the deadline fast approaching. Regardless of whether Trump or Harris wins the next presidential election, TikTok will have to confront this dilemma.
TikTok claims that 60% of ByteDance’s shares are held by global institutional investors, including Susquehanna International Group, Carlyle Group, and General Atlantic, while 20% are owned by ByteDance employees, and the remaining 20% is held by founder Zhang Yiming.
Wealthy Individuals Flee Amid Economic Decline
While Zhang Yiming ascends to the top of the Hurun Rich List, many other wealthy individuals in mainland China have also “ran” amid the country’s severe economic downturn, leading to a mass exodus of affluent individuals overseas.
Rupert Hoogewerf, chairman and chief researcher of the Hurun Report, noted that due to the difficult year faced by China’s economy and stock market, the Hurun China Rich List has experienced unprecedented shrinkage for three consecutive years.
The Hurun China Rich List ranks individuals based on net assets in U.S. dollars, revealing a significant reduction in the wealth of Chinese billionaires. This year, the total wealth of listed entrepreneurs amounted to $3 trillion, a 10% decline from the previous year.
According to a report by investment immigration firm Henley & Partners, uncertainties stemming from the real estate crisis, AI chip regulations, geopolitical tensions, and overall economic decline led to 13,800 high-net-worth individuals leaving China last year, with most migrating to the United States, Canada, and Singapore. These individuals, known as HNWIs, are defined as those with assets of at least $1 million, while the wealthiest among them typically possess between $30 million and $1 billion.
