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TEXXR

Chronicles

The story behind the story

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Sources: founder Richard Liu Qiangdong berated JD.com executives for poor performance and remains the undisputed decision maker despite quitting frontline roles

Ben Jiang / South China Morning Post :

South China Morning Post Ben Jiang

Context & Ripple Effects

The arc here runs through a staged retreat: Xu Lei was profiled as heir apparent back when Liu first pulled out of the spotlight, then JD formally named its first president as Liu stepped back from day-to-day operations, and in 2022 [[a:977678|Liu handed the CEO title to Xu Lei alongside other Chinese tech tycoons exiting top roles during the crackdown]].

This report punctures the optics of that sequence: sources describe Liu berating executives over poor performance and remaining the undisputed decision maker — meaning the titles changed but the operating reality did not.

First-order effects

  • JD.com's executive team now answers directly to a founder who holds no frontline role, making Xu Lei's CEO position effectively subordinate to Liu's judgment on performance.
  • Liu's continued grip resolves nothing about succession — the heir-apparent framing around Xu Lei coexists with a founder who has not actually relinquished control.

Second-order effects

  • Investors and partners reading JD's org chart will discount formal titles and price the company as founder-run, since the 2022 handover did not transfer real authority.
  • Other Chinese tech firms that staged similar founder exits during the crackdown face the same credibility test: their announced retreats will be judged against whether the founder truly stepped away.

Third-order effects

  • If the pattern holds, China's tech-crackdown-era leadership changes function as reputational repositioning rather than governance change, leaving founder control intact beneath new management structures — a structural gap between corporate form and actual decision rights.

The trend: Chinese tech founders' public withdrawals from frontline roles increasingly look like spotlight management, with real decision power staying with the founder.