China’s local government deficits and debt are far worse than you can imagine. They are now targeting private enterprises. Xi is hostile toward private businesses, and local governments know this, so they treat entrepreneurs as if they want to strip them to the bone. The owner of Pang Dong Lai, Yu Donglai, has been targeted.

Yu Donglai distributed 4 billion RMB to employees in one go because the Zhengzhou government demanded that he donate the money to build the city’s central plaza.

Yu refused to hand the money over to the government. After years of experience, having seen corruption everywhere, he understood what was going on and chose to distribute the money instead.

Yu Donglai has already written a suicide note—not a will for distributing assets. He believes he is in danger and may be persecuted or even killed.

You can see this year’s 315 Gala strongly targeted Pang Dong Lai over product quality issues.

This is a sign of official action to come—first destroy your reputation.

You can refer to the earlier case of Sun Dawu in Beijing. If Yu Donglai does not leave or if there is no turnaround, his outcome could be very tragic.

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Profile of Yu Donglai:

Yu Donglai is from Xuchang, Henan, and is the founder of the well-known Chinese retail company Pang Dong Lai.

He is a highly controversial and somewhat legendary figure in China’s business world, with the following characteristics:
•“Ceiling” of the retail industry:
The company he founded is known for extreme customer service (such as free watch repairs, helping purchase medicine, unconditional returns, etc.), and is regarded as a benchmark in China’s retail industry. Many entrepreneurs, including Jack Ma and Lei Jun, have visited to learn from it.
•Unique profit distribution model:
Yu advocates “distribution according to work” and has repeatedly said that most of the company’s profits should be shared with employees. He promotes shorter working hours, more leave, and even introduced “unhappy leave,” challenging China’s widespread overtime culture.
•Distinct personal style:
He is very active on social media, speaks bluntly, and often expresses idealistic views, frequently discussing life, death, wealth distribution, and social issues.

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