Why Southeast Asia Might Be the Promised Land for Chinese Tech

There’s an old Chinese saying which states that frequent relocations will kill a tree but make a person rich. For centuries, Southeast Asia has been a destination for Chinese people searching for a better life, especially during the mass migrations that began in the 18th century. However, these days there’s a new wave of Chinese arriving in the region, who differ from the merchants and laborers that preceded them, or even more recent white-collar immigrants: Over the past few years Chinese tech entrepreneurs have been setting up shop in Southeast Asia, looking to “Nanyang” (南洋, the South Seas) as a new land of opportunity.


As a region boasting a population over 650 million with over 400 million internet users and high levels of mobile connectivity, its large potential customer base and growth trajectory increasingly make Southeast Asian an attractive destination for Chinese tech entrepreneurs looking to ride the next wave of growth.


Hank Wang, an ex-Ant Financial employee, decided to relocate his whole family to Jakarta at the beginning of 2021 and set up an MCN (multi-channel network) agency serving what he sees as the largest opportunity to emerge in Southeast Asian ecommerce in recent years: the launch of TikTok Shop. Since 2021, the region’s TikTok users have been able to shop directly in the app, mimicking the user experience of more traditional locally popular ecommerce platforms like Lazada and Shopee.


“Indonesia is by far the biggest market in terms of potential, so our logic was to launch in this market to get a certain level of scale first before we move onto other countries,” Hank explains.


Quick to capitalize on TikTok’s investments into the region, he predicts that this is a time in which the app will need to build a vibrant ecosystem around its social commerce model in order for it to become successful. Hank’s business model leverages the competitive edge China has in its supply chain and manufacturing capabilities and the knowledge gap in Indonesia around livestreaming to provide a new model of doing business for brands in the country.


Since relocating to Indonesia, Hank has encountered a large community of Chinese entrepreneurs, many of whom relocated from Shenzhen or Shanghai to set up new businesses in Jakarta, often centered around consumer tech and appliances. Statistics from Bank of China Indonesia show that over the past five years bank accounts opened in their local Indonesian entity by Chinese companies have risen from 700 to over 3000, reflecting the trend of Chinese entrepreneurs diving into Indonesia’s rising consumer market.


Most notable among the Chinese consumer brands that have enjoyed a high degree of success in this market are Simplus and Skintific, which are both targeted at and built specifically for the young Southeast Asian consumer, but have their supply chains and manufacturing entirely located in China.


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Hank (far right) at work with his team in Jakarta. Image courtesy Hang Wang.


“I think the new generation of brands is no longer about exporting what’s successful in China to an overseas market, but instead leveraging on the key unique advantages China has to offer but building it inherently for the local market,” reflects Hank. In the last two years of his entrepreneurship journey, he has also started to reevaluate his original model of building for scale and speed while hoping to attract venture capital. Rather, he is now more focused on building a sustainable cash flow positive business.


Standing firmly with the thesis of “building it local” rather than “exporting it local” is Li Jing, who was the lead architect of Tencent’s fintech brand WeBank before co-founding Sirius Technologies, a digital transformation solution for banks and financial institutions.


“From day one, our target market has been global, and our team has been global. We believe the experiences and lessons we took from building WeBank in China can solve universal problems around banking solutions and digital infrastructure in most emerging markets.”


Along with his co-founders, in 2021 Jing chose to set up his company in Thailand, attracted by friendly relocation and taxation policies offered by the Thai government. To promote foreign investment in Thailand, companies that qualify for a Thailand Board of Investment program may enjoy significant tax waivers and multiple visa permit issuances with no stringent requirements around local ownership of the company. Since launching, Sirius Technologies has already found initial success providing its solutions to one of Thailand’s largest credit card companies — Krungthai Card — and it continues to scale across Southeast Asia and even into Latin America.


Many other Chinese tech entrepreneurs like Jing, who are building SaaS (Software as a Service) products, chose Southeast Asia as their first test market, prior to launching in a much more expensive Western market. When marketing SaaS products, it’s common to see Chinese founders take a “service-led” approach, as product customization and on-demand customer care can be necessary to stay competitive in China. However, whether the right localized approach is more service- or product-led is something each business owner must iterate and test within the region.


The region however, also presents unique challenges for Chinese entrepreneurs, who are more familiar with operating in a large homogenous market in terms of culture, language, and business etiquette. Southeast Asia’s fragmentation, wide range of different work cultures, and varying ease of doing business mean that Chinese entrepreneurs operating in the region also need to become significantly more strategic about market expansion efforts and resource allocation. Finding success in one country through local partners often means picking the “right” families to collaborate with, but this can come at the expense of potentially alienating other important players in the economy.


So, while the future definitely looks bright for Chinese tech in Southeast Asia, ultimately, it comes down to each entrepreneur’s ability to assemble the right team to forge ahead in the region. Like anywhere else, their employees are their real competitive advantage, making the magic happen.


Banner image by Haedi Yue.

Dune 2 is So Popular in China that Denis Villeneuve is Getting Free Hot Sauce

Dune: Part Two is proving to be a major hit in Chinese cinemas, sparking excitement rarely felt for foreign films in China these days. Director Denis Villeneuve has even turned up in Beijing for promotional events, where Chinese fans presented him with gifts of the iconic hot sauce Lao Gan Ma (老干妈) and the spice blend Shi San Xiang (十三香), referencing a meme that’s swept across Chinese social media and hails the two products as “the Chinese version of the Spice Melange,” the most valuable substance in the Dune universe.

RADII has you covered for meme translations, as we do.


The warm exchange between Villeneuve and his Chinese fans encapsulates the sweeping success of Dune: Part Two across Chinese cinemas. In its opening weekend alone, the film boasted an impressive gross of over 140 million RMB, amassing a total of over 266 million RMB over just 11 days of screening.


Per box office tracker Maoyan’s data, Dune: Part Two soared to the second spot in China’s national box office rankings, edging out many previously popular domestic films and trailing only slightly behind Taiwan crime thriller The Pig, the Snake and the Pigeon — a remarkable feat for a Hollywood production. Notably, on its first Monday, March 11, Dune: Part Two captured nearly 40% of the day’s total ticket sales, doubling the performance of the Taiwanese action film.


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Dune’s remarkable success as showcased by data on Maoyan.


Beyond its impressive box office numbers, the film seems to also be resonating with cinephiles. With a stellar 9.1 rating on Maoyan and an exceptional 8.3 on Douban, it has outperformed many locally-produced films. In reviews posted on Douban, humorous comments like “In the end, the female lead cries and takes a taxi away” and “Sandworms, the Fremen’s high-speed rail,” along with effusive praise like “Incredibly stunning! […] It’s the Lord of the Rings plus Star Wars trilogy of our era!!!” speak to how warmly the film has been received in China.


Moreover, Dune: Part Two has brought Timothée Chalamet greater exposure in China than ever before. His soaring popularity was highlighted in a recent interview where he expressed gratitude for the affectionate nickname Chinese fans bestowed upon him: Tian Cha (甜茶, Sweet Tea). The nickname is a clever piece of wordplay, transliterating “Tim” into “Tian” and Chalamet into “Cha,” while reflecting perceptions of the star’s personality as “sweet.”


In an era where Chinese audiences have grown increasingly distant towards Hollywood offerings, the remarkable success of Dune: Part Two sets a high bar that upcoming releases like Kung Fu Panda 4 and Godzilla x Kong: The New Empire may find challenging to match.


Banner image: Denis Villeneuve and Dune: Part Two producer Tanya Lapointe enjoy traditional candied hawthorns on their visit to Beijing. Image via Weibo.

Young Chinese Studying Abroad Return Home to 4,000 RMB Salaries

For decades, Chinese families have considered sending their children to study abroad a surefire shortcut to gaining wealth and cementing their social status. This phenomenon actually even predates China’s Reform and Opening Up, with many upper class students having headed overseas in the first half of the 20th century, before a 30-year interregnum. And while Chinese students aren’t going to stop flocking to foreign schools and universities any time soon, rising unemployment and dropping salaries for returning students mean the trend is starting to subtly change.


Studying abroad is still popular: Last year, students who originally planned to study at universities in China but later decided to study abroad increased from 112,000 to 563,000.


However, 2023 employment data for Chinese graduates who studied abroad shows that a foreign degree does not necessarily make finding desirable employment any easier. The annual salary for graduates who studied abroad fell from 268,200 RMB in 2020 to 204,500 RMB in 2023. Within China, the lowest paying jobs for student returnees paid as little as 4,000 RMB (around 556 USD) a month — an extremely low amount even for an entry-level white collar job.


This shift may be caused in part by falling demand for overseas returnees at multinational corporations in China. For high-paying positions in finance and technology, companies are more interested in graduates from China’s prestigious “Project 985” or “Project 211” universities (the country’s leading universities, which receive government support and often have a strong focus on engineering). And students who position their language skills as a key strength are also facing a dead end: With AI on the rise, demand for translation and editing is also decreasing.


The drop in salaries is certainly shocking, but it does speak to other factors besides a cooling economy. For example, while a degree from a relatively prestigious foreign university might look good on paper, many are actually academically easier to gain acceptance to than leading Chinese schools like Peking or Tsinghua University. One Chinese netizen shed light on the situation: “Students who cannot beat the Gaokao [China’s university entry exam] do not have the potential. They think studying abroad can give them an edge in competitive industries.”


Yet the pressures of China’s university admissions system might be the exact reason Chinese parents continue to send their children abroad. Students who cannot beat the Gaokao are attending universities in Hong Kong, Singapore, and Thailand in increasing numbers. Schools in China’s Special Administrative Regions and Southeast Asia are increasingly popular for their relatively low prices and commonalities with Chinese culture, making them an attractive proposition for those who cannot afford schools in the US and Europe, are unable to obtain visas, or are concerned about safety.


It seems that Chinese parents remain committed to building a better future for their children, but how that future is defined — whether by high salaries, or less stressful academic environments and a better work-life balance — is changing.


Banner image via Sohu.

5 Things To Do at ComplexCon Hong Kong

Street culture media empire Complex Networks’ annual festival ComplexCon is touching down in Hong Kong for the first time next week, from Friday, March 22, to Sunday, March 24, at the AsiaWorld-Expo center. While a big part of the draw is definitely the international artists and established brands coming through — from Atlanta trap star 21 Savage and conscious rapper Lupe Fiasco to hip hop’s hatters of choice Kangol and art book legends Taschen — what makes it an even more special event is how musicians, artists, and designers from Hong Kong and around the region are getting a chance to show off their stuff on the same major platform. Here are RADII’s picks for the weekend:

1. Listen to the Past, Present, and Future of Chinese Hip Hop

As mentioned above, 21 Savage and Lupe Fiasco’s sets on the final night of the festival — plus a packed lineup of Korean stars led by Simon Dominic the day before — are definitely a big deal for Hong Kong music fans. But it’s Friday’s show that has really caught our attention, for how it brings together different generations of Chinese-language hip hop. The night sees the return of Hong Kong’s pioneering 3CORNERZ, the trio of actor and CLOT founder Edison Chan, LMF’s MC Yan, and Chef. Repping the younger generation in Hong Kong is Novel Fergus, who’s been building a dedicated fan base over the past few years with dark, moody hip hop that revels in local culture and all the poetic complexities of Cantonese. Rounding out the bill is Lexie Liu, who was widely recognized as one of the most creative artists to emerge from China’s rap show mania a few years back, and whose style has intriguingly been evolving towards futuristic electro-pop since then.

2. Hear the O.G.s Share Their Wisdom

The ComplexCon(versations) section of the festival features creatives talking shop about their practices, and a major highlight is undoubtedly the lecture on Saturday by Hiroshi Fujiwara, “the godfather of contemporary streetwear,” who is said to have brought hip hop to Japan back in the 1980s. And if you need more than one godfather, don’t worry! There’s a chat later the same day featuring “the godfather of Hong Kong street culture” Eric Kot, the radio DJ turned comedian, actor, and more, who introduced his city to A Bathing Ape. Also in the panel is actor/rapper JBS Brian, who founded one of Hong Kong first skate shops, 8FIVE2, back in 1999. All in all, it promises to be a fascinating look at the birth of streetwear in Hong Kong.


Also worth checking out the next day is the talk “Beyond K-Pop: The Rise of K-Culture and Where It’s Taking Us,” which hopefully will break down the secret sauce behind Korean culture’s meteoric rise around the globe.

Eric Kot rose to prominence as part of the comedy rap duo Softhard, and this Rei Kawakubo- and Yohji Yamamoto-referencing jam from 1991 should make it clear he’s been a fashion killer since back in the day.

3. Indulge in Some Retail Therapy

Part of Complex’s M.O. is as a consumer guide, so it’s no surprise that there are going to be some good shopping opportunities at ComplexCon. Brands run by many of the performers and panelists mentioned above have goods for sale in the Complex Marketplace: Edison Chan’s CLOT, Hiroshi Fujiwara’s fragment design, JBS Brian’s 8FIVE2, and Eric Kot’s ASIAACTAGAINSTAIDS. There will also be a handful of up-and-coming brands from the Chinese mainland, such as Randomevent, the king of collabs in Chinese streetwear. Some exclusive merch at the festival that grabbed our eyes comes from Yardbird — which is actually a yakitori restaurant. The Michelin-starred eatery brought a new, hip energy to Hong Kong’s dining scene when it opened in 2011, and it’s still going strong.

4. Feast Your Eyes on Art

Complex Marketplace also features artworks by the who’s who of that indefinable section of the art world that exists between white cube galleries and fashionistas’ sneaker collections. Arguably leading the charge is Daniel Arsham, but he’s joined by Japanese graphic artist Verdy, who is artistic director of this edition of ComplexCon and already made a big splash in China last year with a McDonald’s collab. Other highlights including Chinese-born, London-based designer Feng Chen Wang, comic- and graffiti-inspired Korean artist SAMBYPEN (also featured in the “Beyond K-pop” panel), and Fukuoka’s KYNE, who has smoothly transitioned from graffiti into fine art.

5. Stuff Your Face

Wandering around a convention center for a couple of hours is sure to get you hungry and thirsty, so ComplexCon has you covered. The event’s food vendors showcase flavors from the kitchens of Hong Kong’s minority communities along with the other international flavors that have arrived in the city more recently, from Bengal Brothers’ Kolkata-style kathi rolls, to Italian cocktails from the highly-rated Bar Leone and Singaporean snacks from Uncle Quek. Yardbird even indirectly makes a second appearance through a seafood bar from Flagrant Sauce, a hot sauce brand connected to the restaurant’s team.

Tickets available via Complex Chinese.


Banner image by Haedi Yue.

Flora Weil: From Ancient Star Charts to Desert Terraforming

On the edge of the Taklamakan desert in the early 20th century, a Daoist monk paused his work on ancient Buddhist murals to light a cigarette. His smoke revealed a small, unnoticed gap in the wall. After digging through the sand, he uncovered a cache of manuscripts, spanning a millennium of Central Asian history in a dozen languages, some long lost like Songdian.


Among the 50,000 scrolls, a 7th-century star chart stood out as the first discovery of its kind — primarily because these types of celestial atlases were used by the Tang dynasty to steer significant political affairs, and the royal family treated them with the reverence and secrecy we now ascribe only to nuclear codes. Most importantly for everyday life, these astronomical maps were the main device used to plan agricultural seasons and prepare for droughts.


Today, Gansu faces a drought and environmental crisis that could only be grasped through the mysticism of a star prophecy. The region’s drying reservoirs, rising heat, and spreading desertification portend the future of many similar regions across the world, from the American Southwest to the Middle East’s Fertile Crescent. In recent years, Gansu has reemerged in international headlines with seasonal regularity, whenever spring sandstorms originating in the Gobi Desert sweep across Northern China and cover Beijing, Seoul, and Tokyo in sand.


Flora Weil landed in Gansu 1500 years after the first star charts were written to investigate another, more geoengineered kind of planetary model. The designer/engineer/artist’s project Design in Rising Winds seeks to understand what new forms of design can emerge from a region that has been recomposed so meticulously by anti-desertification schemes and climate migration programs.


Flora Weil Mogao Caves

Flora Weil, Design in Rising Winds: Research on Ancient Star Maps and Cloud Divination, 2024.


Weil has spent more than a year investigating the transformations taking place throughout Gansu on a grant from Hong Kong’s M+ museum — Asia’s biggest contemporary art institution — and Design Trust, an NGO established to support innovative design projects. When she arrived in Gansu in 2023, the province was in the midst of a pivotal year. First, the majority of its reservoirs had run dry and crops all across the province began to die. Second, the anti-sandstorm campaign designed to halt the desert’s growth reached a 40-year milestone for its artificially-planted trees quota. On paper, this initiative fully eradicated one of China’s major deserts, the Babusha.


When Weil and a coterie of environmental professionals embarked on a month-long trip through Gansu I joined them to try to understand what has made China’s deserts unique, and how the global response to environmental uncertainties are upending the domains of economics, technology, and design.

Gansu’s Planetary Emergence

In the global imagination, it might seem like Gansu stands on the periphery of world events. If judging only by GDP, this isolated desert province is one of China’s poorest regions. Its spectrum of exports mirrors the banal complexity of the global economy: integrated circuits, solar panels, coal, apples, and cement. Gansu’s Provincial Museum in Lanzhou luxuriously dedicates half a floor to the Longhai railway: the very first project of China’s original five-year plan and definitely not a destination point in your FTWeekend vacation guide.


But beneath the surface of historic marginalia lies the planet’s most ambitious climate adaptation project. For the last 40 years, China’s Ministry of Forestry has undertaken the “great green wall” initiative that has covered 70 million hectares of desertifying land with trees. Two deserts — the Kubuqi in Inner Mongolia and Babusha in Gansu — have been fully wiped off the face of the earth, ostensibly a success of mythological proportions. But the desert storms have continued. Some years are considerably worse than others, and none of the experts understand why.


Nonetheless, digital “great green wall” boosters have started to emerge. Over the last few years, Ant Forest has become China’s most popular reforestation app. Through Alipay, a billion and a half users can collect points for sustainable behavior, like taking the metro or foregoing disposable utensils for food delivery. These points can be spent on one of 20 different varieties of desert shrubs to be planted in rural Gansu. Alipay hires locals to go into the desert, plant, and monitor the user’s choice of sandstorm-fighting tree in a strange game of environmental Tamagotchi. Ant Forest has successfully gamified saving the planet, giving urbanites an emotionally convenient way to think about the climate.


Flora Weil Ant Forest

Flora Weil, Design in Rising Winds: Research on Ant Forest and Desert Afforestation, 2024.


We drove through hundreds of kilometers of dead sunflowers (one of the many fallen victims to the ongoing drought) in Central Gansu’s Wuwei, searching for an Ant Forest. None of the residents knew where it was, and there were no decipherable signs for it except a single glaring notice — an upbeat and marketing-approved description on the navigation app Gaode Map. Through sand dunes, abandoned homes, and a makeshift landfill stood a collection of forlorn shrubs. The ground was still covered in the plastic from the containers used to haul in the plants. We may have been unlucky, but this was an indicative sample of the growing digital sand economy.


During one of the 10-hour long drives through the psychedelically monotonous landscape, I asked Weil why she got interested in Gansu. A moment and another field of dead sunflowers later, she responded: “Hmm… I think I’m interested in things that hold contradictions. This world drew me in because it seemed to never quite hold still both in reality and in my imagination. It’s a place where scientific knowledge is unstable, where failure and success don’t really make sense.”


The majority of Gansu’s desert engineers are based at the Cold and Arid Regions Environmental & Engineering Research Institute (CAREERI) of the Chinese Academy of Sciences. The institute’s main laboratory in Lanzhou is home to the world’s largest man-made aeolian tunnel, designed to simulate wind patterns throughout the planet. The desert scientists (as they affectionately call themselves) are trying to figure out how the planet’s winds form, what causes sandstorms, and how to design storm-resistant infrastructure


During one of our meetings with CAREERI’s experts, Professor Xian Xue — head of the plant bacteria lab — cheekily asked Weil, “It seems like you are developing a whole new design principle, no?” The answer may be more extreme than she would expect: Gansu exemplifies the future of all modern design, spanning infrastructure, computation, and economics.

Flora Weil’s Path From System Design to Worldmaking

Flora Weil’s practice emerged from engineering and design, and now stretches to other, blurrier disciplinary spaces. Born and raised in Paris to Chinese immigrants, she studied at Smith College’s all-female engineering program, where she developed an interest in system design and thermodynamics. She then received a double Master’s in Innovation Design Engineering from the Royal College of Art and Imperial College, where she created a series of speculative machines for resource collection in a world defined by atmospheric optimization. For the final capstone, she designed an open-source alternative navigation device inspired by the polarized vision of insects.


As an artist, she first got exposed to the art world at Tomas Saraceno’s studio in Berlin, where she learned to design nature-technical interventions with spiders in the Arachnid Research Lab. Recently, she co-founded an interactive media studio and research platform called “Nephila,” named after a species of spider she used to breed. Through the studio, she produces experimental technology and design projects, the most recent of which is “Worlding as Research,”which focuses on prototyping open-source tools that turn world-making methods into forms of strategic research.


Yet Design in Rising Winds is Weil’s most ambitious project so far, weaving together her interest in the design and engineering of ecosystems with everyday life. She also revels in the uncertainty.


“Before I visited Gansu, I was reading Jerry Zee and Jesse Rodenbiker, learning about China’s ecological plans and the historical importance of the Hexi Corridor. I was already bewitched,” she reflects. “The people I got the chance to spend time with on site confirmed that what I was always most interested in was finding ways of being that co-exist with, and perhaps thrive from, the contradictory conditions of life.”


Flora Weil Fieldwork

Flora Weil, Design in Rising Winds: Research on Ecological Migration and Rural Aesthetics, 2024.


Weil’s project focuses on Gansu due to its global environmental implications, relocating the province from periphery to center stage. The sand blown from Gansu every spring not only covers the Beijing skies in apocalyptic orange, but even makes its way to Korea and Japan. The sands, while inherently local in origin, are transnational in their lack of boundaries, powered by the million-year-old geochemical rhythm that existed before the current manifestation of nations and will persist when they are long gone.

The Design of Control and Cybernetics

The fundamental logic of China’s techno-environmental paradigm — spanning digital services, economic incentives, urbanization schemes, wind tunnels, and sand fighting shrubs — can seem mundane to the modern observer. The main assumption being that the environment and social systems can be optimized though scientific and governmental intervention. But the way this assumption emerged and gets manifested is far from accidental, and is uniquely local.


Flora Weil Earth System

Flora Weil, Design in Rising Winds: Research on Earth System Technologies, 2024.


At its partially visible base, Weil’s project is about exploring how state power is expressed through ecology in the extreme of the desert: from ancient irrigation works and Cold War missile testing to solar panels and afforestation. This logic is permeated by the work of 20th century systems scientists like Qian Xuesen and Norbert Wiener who established the field of complex systems modeling and control — cybernetics — that viewed society, environment, and economics through the lens of engineering. The planet became just a complex mathematical problem to be managed with the right set of levers. In this context, understanding the flight of Gansu’s sands is a window to the modern history of China’s technology and environmental governance.


From interest rate management to Covid infection forecasts, cybernetics is the modern logic of governance in every corner of the world. In Gansu, every poetic and tragic implication of this desperate attempt at control is laid bare. Weil’s Design in Rising Winds dissects the desert’s hidden lessons of all these inherent tradeoffs and complexities. It reveals how mechanistic forms of ecological governance don’t always produce mechanistic or controlled outcomes. Instead, there is a great deal of indeterminacy in the processes involved and those who live within this changing landscape navigate its limits with subversion and creativity. The project neither endorses nor admonishes, but takes the sand as it is: ever present, uncontrollable, and locked in an eternal dance with our borders, cities, phone apps, and legal structures. Ultimately, the sand is the final designer.


Banner image: Flora Weil, Design in Rising Winds: Research on Sonic Sand Dunes Produced by Microscopic Resonance Chambers, 2024. All images courtesy the artist.

An Ice Cream Empire’s Meltdown: Zhong Xue Gao’s Dramatic Fall from Grace

Zhong Xue Gao, a would-be upmarket Chinese ice cream brand often referred to as “the Hermès of Ice Creams,” is currently experiencing a dizzying fall from grace. The brand, also sometimes called “Chicecream” in English, has seen its prices plummet, falling from RMB 60 (around USD 8) to a mere RMB 2.5 on a certain online shopping platform.


Ice cream consumers, taken aback by this drastic price drop, have felt a sense of betrayal, pondering the vast profit margins that the company must have previously enjoyed. The price reduction, however, is just the tip of the iceberg. In recent years, Zhong Xue Gao has been embroiled in controversies ranging from accusations of exploiting customers to facing serious financial and legal trouble.


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Zhong Xue Gao’s debut flavor Ecuador Pink, which retailed for RMB 66 and sold out in 15 minutes in 2018. Image via Sina.


The company’s woes began to surface publicly around December 2023, when the equity of seven of its subsidiaries was sequentially frozen by courts across various regions, locking up nearly RMB 38.8 million in assets. These subsidiaries were involved in a wide range of activities, from food manufacturing and sales to logistics and wholesale.


Legal challenges soon followed. One subsidiary, Zhong Xue Gao Food (Shanghai) Co., Ltd., was compelled by the Shanghai Jiading District People’s Court court to fulfill overdue legal obligations amounting to RMB 817,000, while another was fined over RMB 1.12 million by the Shanghai Yangpu District People’s Court.


The human cost of these financial troubles has been significant. The company’s workforce has dwindled from over 2,000 employees at its peak to just around 100. Some former employees are owed back pay, and despite negotiations, have yet to receive full wages dating back to last fall, nor the entirety of their severance packages.


Even at the zenith of its popularity, Zhong Xue Gao was beset with controversies. Beyond its “the Hermès of Ice Creams” nickname, the brand was also dubbed the“the Ice Cream Assassin” for its wallet-killing prices.


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“The Ice Cream Assasin Kills No More” reads a headline from popular news outlet Toutiao. Image via Weibo.


Back in 2022, the company faced significant public scrutiny when videos surfaced online showing its ice cream not melting when exposed to fire. This bizarre incident led experts and regular consumers alike to question the safety of Zhong Xue Gao’s products.


Now, it seems Zhong Xue Gao is finally melting under the intense pressure of its controversies and financial woes. Though the brand didn’t do itself any favors along the way, its predicament also seems to speak to a number of larger factors and issues: increasingly health conscious consumers, limited budgets, and the failure of new brands which have sought to sell themselves through a “luxury” image and price point, rather than more organically building such a reputation through high-quality products.


Banner image via Sina.