In the 1980s, as China began to open up after decades of Maoist rule, a striking phrase echoed across the country: “To get rich is glorious.” This saying, though unofficial, became emblematic of the changing economic ethos under Deng Xiaoping, China’s paramount leader at the time. His pragmatic approach to economic reform was epitomized by another famous quote: “First you let some make money, then more will follow.” Deng’s leadership marked a dramatic shift for China, moving away from the collectivist ideologies of the Maoist years and embracing market-driven growth.
China in the late 20th century was a country undergoing profound change. Under Deng Xiaoping’s leadership, the nation embarked on its journey toward becoming the global economic powerhouse we know today. With his focus on economic pragmatism over strict ideological purity, Deng pushed for policies that encouraged private entrepreneurship, foreign investment, and market reforms. This was a bold departure for a nation that had, under Mao, pursued strict communist ideals of egalitarianism and collective ownership.
The road to riches was not paved equally for all, but some early entrepreneurs became symbols of China’s new economic opportunities. One of the first success stories was that of Nian Guangjiu, a farmer-turned-entrepreneur who founded the now-famous snack company Fool’s Melon Seeds. Nian rapidly ascended from poverty to becoming one of China’s wealthiest individuals, illustrating the possibilities Deng had opened up for the nation’s citizens.
Yet, Nian’s meteoric rise also hinted at the darker side of wealth in China. In 1989, he was accused of embezzlement, spent time in prison, and ultimately lost control of his company. His fall from grace serves as a cautionary tale for many entrepreneurs in China, highlighting how perilous the path to wealth can be under the shadow of political scrutiny. It was a clear reminder that while getting rich was possible, it came with risks, especially if one fell afoul of the Communist Party.
A New Class of Billionaires
Despite the pitfalls, the scale and speed of China’s economic growth were nothing short of staggering. In 1999, when Forbes produced the first-ever “rich list” for China, there was only one billionaire in the entire country: Rong Yiren, a Hong Kong businessman based on the mainland. At that time, the concept of a Chinese billionaire was still an anomaly in a country where economic equality had been a core tenet of its political philosophy.
By 2010, the number of billionaires had skyrocketed to over 60, marking the emergence of a new class of ultra-wealthy individuals. By 2020, that number had grown to 389, a striking contrast to the extreme poverty that had defined much of China’s Maoist years just a few decades earlier.
Fast-forward to 2024, and the Hurun Report, a leading wealth tracker, estimated that China now has the largest number of billionaires in the world at 814, surpassing the United States, which boasts 800. This massive accumulation of wealth in a country that once prided itself on communist ideals presents a paradox: China, once synonymous with communal living and egalitarianism, has become home to some of the richest people on Earth.
However, the rise of billionaires has also shone a spotlight on the deepening inequality in Chinese society. According to the Gini coefficient, a widely used measure of income disparity, China’s wealth gap had widened significantly by 2021. In fact, China ranked more unequal than both the U.S. and the U.K., two nations often criticized for their economic disparities.
Xi Jinping and “Common Prosperity”
When Xi Jinping assumed leadership of China in 2012, he sought to address the growing concerns over inequality and the societal tensions it created. His solution was the idea of “common prosperity” – an ethos that emphasized wealth distribution and more equitable economic growth. “Serve the people” and “common prosperity” became central slogans of his administration, as the government aimed to shift focus from the breakneck accumulation of wealth by a select few to more inclusive development that benefits the broader population.
Xi’s vision has been on full display in major cities like Beijing and Shanghai, where “common prosperity” is plastered across public spaces. Yet, achieving this balance is far from straightforward. China’s economy has been facing turbulence due to the residual effects of the COVID-19 pandemic and heightened tensions with the United States. The slowdown in economic growth prompted China’s central bank to announce a major stimulus package, which sparked a rally in the stock market but underscored the broader challenges the country faces.
For China’s wealthiest, this new era has brought both caution and uncertainty. The country’s crackdown on high-profile billionaires who challenge or criticize the government has sent a clear message: ostentatious displays of wealth and any suggestion that one is above the law will not be tolerated. As a result, the super-rich have had to navigate a far more precarious political and economic landscape.
The Exodus of the Super-Rich
In recent years, many of China’s wealthiest individuals have found themselves facing increasing scrutiny. Among the most notable cases is Jack Ma Yun, the founder of Alibaba, who became a global symbol of Chinese entrepreneurial success. After making critical comments about the government and its financial regulations, Ma disappeared from public view for several months, prompting speculation about his fate. While Ma eventually reemerged, his reduced public presence and the heavy regulations imposed on his business empire have caused other billionaires to take note.
This new environment has spurred an exodus of China’s super-rich. According to one report, 13,800 millionaires left China in 2023 alone, most of them moving to countries like the United States, Canada, and Singapore. For many, the decision to leave China is driven by a mix of political and economic concerns. With increasingly stringent capital controls and restrictions on moving assets out of the country, wealthy individuals are seeking to protect their fortunes by relocating abroad.
Still, the exodus should not be overstated. It remains possible to be rich in China, but it is far more advisable to stay under the radar, be publicly loyal to the Communist Party, and invest in industries favored by the government. For those who navigate these complexities, great wealth is still attainable.
Billionaires in Favorable Sectors
One such example is Wang Chuanfu, the founder of BYD, a leading electric vehicle manufacturer. As China pushes toward greener technologies, businesses like BYD are in a favorable position, receiving government support for their strategic and environmental importance. Over the past few years, Wang’s wealth has doubled, reaching an estimated $20 billion. Based in Shenzhen, he remains one of the few high-profile billionaires who has managed to thrive under Xi Jinping’s administration.
However, the current richest person in China is not involved in cutting-edge technology or high-tech manufacturing. Zhong Shanshan, the founder of Nongfu Spring, a bottled water company, holds this title. Zhong’s fortune, derived from one of the simplest products – bottled water – underscores the reality that wealth in China is not confined to the tech sector.
China’s wealth landscape continues to evolve under the watchful eye of the government. While the country remains home to hundreds of billionaires, the political and economic dynamics have shifted dramatically from the early days of Deng Xiaoping’s reforms. Ostentatious displays of wealth are no longer celebrated, and the country’s super-rich must balance their success with political loyalty.
For entrepreneurs and billionaires in China, the future is likely to be shaped by government priorities. High-tech industries, green technologies, and other sectors aligned with Xi Jinping’s vision of China’s future will remain favorable for wealth generation. However, the days of unfettered capitalist expansion are over. The pursuit of wealth is now tempered by the need to align with the Communist Party’s goals of common prosperity.
As China continues to grapple with economic challenges and geopolitical tensions, the rich will need to tread carefully. Getting rich may still be possible, but in today’s China, the path to glory is fraught with political and social complexities that require a keen understanding of the country’s shifting priorities.
