In China, the word "national enterprise" (民族企业) has long been a origin of pride and association with heroic businessmen who built their businesses during the hard times of the end of the Qing dynasty and the Republic of China period. Today, however, being a "real Chinese company" is not only a substance of history, but besides a powerful marketing asset – and at the same time a trap. 1 false step could provoke accusations of deficiency of patriotism and lead to boycotts.
Wahaha, 1 of China's largest beverage producers, has late been in the eye of the media cyclone, whose reputation has been shattered after the discovery of the household scandal and abroad ties of heirs. This is simply a communicative that shows how much the Chinese reality has changed – where loyalty to the nation has become more crucial than business strategies.
From Heroes to Suspects: abroad passports and “fail”
Over the last decades Chinese entrepreneurs have frequently secured their future by gaining abroad passports or sending children to survey abroad. For companies planning to enter global markets registration in taxation havens specified as the Cayman Islands, it was standard. Today, however, these practices have become a political burden.
An example is Dong Mingzhu, CEO of Gree (Chinese householder giant), who announced in 2025 that her company would "not hire people who studied or worked abroad due to the fact that any of them might be spies." Although the authoritative media have distanced themselves from these words, they show how much the social climate has changed.
Nongfu Spring: the first victim of national anger
In 2024, Nongfu Spring, 1 of the largest bottled water producers, became the mark of attacks erstwhile netizens concluded that the packaging of her tea “Oriental Leaves” contained “Japanese motifs”. The case grew stronger erstwhile questions arose about the nationality of the founding son. Despite assurances that the company "will always be Chinese", Nongfu lost part of the marketplace and Wahaha – his longtime rival – was hailed as "a genuine Chinese alternative".
Wahaha: The fall of the national icon
In 2025, however, Wahaha was in a akin situation. Following the death of the founder, Zong Qinghou – known as “billionaire in canvas shoes” – a household scandal broke out. 3 of his illegitimate children sued the heiress, Zong Fula's daughter, demanding a $4.8 billion fortune-sharing.
The court papers revealed a network of luxury properties and abroad trusts, destroying the image of a humble patriot. Worse still, it turned out that Zong Fuli had had an American passport for years, although she formally renounced her citizenship in 2010. For many Chinese it is simply a shock – in a country where dual citizenship is banned, and Wahaha was seen as “a company of average people”.
Why does it matter?
– Nationalism as a Gun: In China patriotism has become a tool of competition – companies usage it to win customers, but besides to destruct rivals.
– Risk for business: Even many years of marketplace leaders can lose assurance in a fewer days if the community considers them "unpatriotic".
– New Reality: For abroad investors it is simply a signal that in China loyalty to the nation can be more crucial than financial results.
The Nongfu Spring and Wahaha stories show how fragile the reputation of even the largest companies in China is. In the social media era, all item – from packaging to private life of the owners – can become a origin of crisis. To the Chinese public it is not only a business issue, but besides a test of loyalty to the country.
Source:
- South China Morning Post – Zong household court reports
- People’s regular – comments on Dong Mingzhu’s statements
- Market analyses – Nongfu Spring and Wahaha shares
- Judicial papers from Hong Kong and Hangzhou
Leszek B. Glass
Email: [email protected]
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