Zong Qinghou
{{Short description|Chinese businessman (1945–2024)}}
{{Cleanup|reason=conflicting places of birth|date=February 2024}}
{{Family name hatnote|Zong|lang=Chinese}}
{{Use dmy dates|date=February 2024}}
{{Infobox officeholder
| name = Zong Qinghou
| image = Zong_Qinghou.png
| native_name = {{nobold|宗庆后}}
| native_name_lang = zh
| birth_date = {{Birth date|1945|10|11|df=y}}
| birth_place = Suqian, Jiangsu, China
| death_date = {{Death date and age|2024|02|25|1945|11|16|df=y}}
| death_place = Hangzhou, Zhejiang, China
| occupation = Businessman
| title = Delegate to the National People's Congress
| party = Chinese Communist Party
| spouse = Shi Youzhen
| children = Zong Fuli ({{zh|s=宗馥莉|labels=no}}; Kelly Zong, daughter){{Cite news |author=Chen Ziyan |date=7 February 2017 |title=Who Are China's Most Powerful Businesswomen? |url=https://www.chinadaily.com.cn/china/2017-02/07/content_28124034_3.htm |work=China Daily |page=3 |access-date=29 February 2024}}{{Cite web |title=Forbes profile: Zong Qinghou |url=https://www.forbes.com/profile/zong-qinghou/ |work=Forbes |access-date=18 March 2022 |archive-date=24 June 2020 |archive-url=https://web.archive.org/web/20200624024212/https://www.forbes.com/profile/zong-qinghou/ |url-status=live }}{{Cite web |title=Kelly Zong |url=http://www.forbesasiaconferences.com/forbeswomenforum2012/speaker/kelly-zong |archive-url=https://web.archive.org/web/20121029235912/http://www.forbesasiaconferences.com/forbeswomenforum2012/speaker/kelly-zong |archive-date=29 October 2012 |url-status=dead |publisher=Forbes Forum: Asia's Power Business Women |date=1 March 2012 |access-date=29 February 2024 }}
| term_start = 2002
| term_end = 2018
| module = {{Infobox Chinese|child=yes|order=st
| s = {{linktext|宗|庆|后}}
| t = {{linktext|宗|慶|後}}
| p = Zōng Qìnghòu
}}
}}
Zong Qinghou ({{zh|s=宗庆后}}; 11 October 1945 – 25 February 2024) was a Chinese billionaire businessman, and the founder, chairman and CEO of the Hangzhou Wahaha Group, China's leading beverage company.{{Cite news |title=Danone set to sue Wahaha over breach of contract |date=11 April 2007 |work=South China Morning Post |location=Hong Kong |page=B3}} As of March 2022, his net worth was estimated at US$8.7 billion.
Biography
Zong was born on 11 October 1945,{{cite web |script-title=zh:宗庆后：解剖"娃哈哈"20年 | website=dfzjsh.com | date=6 March 2019 | url=http://www.dfzjsh.com/xy/ShowArticle.asp?ArticleID=536 | archive-url=https://web.archive.org/web/20190306111654/http://www.dfzjsh.com/xy/ShowArticle.asp?ArticleID=536 | archive-date=6 March 2019 | url-status=dead | access-date=25 February 2024}}{{cite web |author1=Ci Yuzhou |script-title=zh:《宗庆后：万有引力原理》|trans-title=Universal Gravitation: Zong Qinghou's Business Law|year=2015 |publisher=Red Flag Publishing House |url=http://www.hongqipress.com/bookabstract/201610/t20161010_1964159_5.shtml}} into a poor family in Zhejiang,{{Cite book |last1=Marquis |first1=Christopher |url= |title=Mao and markets the communist roots of Chinese enterprise |last2=Qiao |first2=Kunyuan |date=2022 |publisher=Yale University Press |others=Kunyuan Qiao |isbn=978-0-300-26883-6 |location=New Haven |oclc=1348572572 |author-link=Christopher Marquis}}{{Rp|page=75}} and he had little formal education. Because of the family's poverty, Zong had to drop out of middle school.{{Rp|page=75}} Zong was part of the sent-down movement and worked in Zhoushan{{Rp|page=75}} at a salt farm. In his spare time, Zong read and studied communist texts including The Collected Works of Mao Zedong and How the Steel was Tempered by Nikolai Ostrovsky.{{Rp|page=75}}
In 1979, Zong returned home upon the retirement of his mother, who was a school teacher.[http://unn.people.com.cn/BIG5/41495/41500/3037676.html "娃哈哈"的新童話] {{webarchive |url=https://web.archive.org/web/20080425095207/http://unn.people.com.cn/BIG5/41495/41500/3037676.html |date=25 April 2008 }}(轉載自証券日報) People's Daily, {{in lang|zh}} He eventually returned to Hangzhou, and only found menial work at a local school due to the low level of his education. In 1987, he targeted a minigrocery in a school in Shangcheng District, Hangzhou, selling milk. Zong headed the embryonic Wahaha business, which distributed fizzy soft drinks, ice and stationery. Together with two retired schoolteachers, he borrowed the sum of CNY 140,000, to start producing milk drinks for distribution.{{Cite web |last=Kong |first=Dimsumdaily Hong |date=25 February 2024 |title=China's leading beverage mogul and founder of Wahaha Group, Zong Qinghou, passes away at the age of 79 |url=https://www.dimsumdaily.hk/chinas-leading-beverage-mogul-and-founder-of-wahaha-group-zong-qinghou-passes-away-at-the-age-of-79/ |access-date=26 February 2024 |website=Dimsum Daily |language=en-US |archive-date=25 February 2024 |archive-url=https://web.archive.org/web/20240225071002/https://www.dimsumdaily.hk/chinas-leading-beverage-mogul-and-founder-of-wahaha-group-zong-qinghou-passes-away-at-the-age-of-79/ |url-status=live }}
Zong obtained independence from an early government partner by stressing his links with Danone. With his autocratic style and workaholic ethic, he built Wahaha into the largest beverage manufacturer in the People's Republic of China.{{Cite news|work=South China Morning Post |location=Hong Kong |title = Danone and Wahaha vie for the last laugh |date = 11 June 2007 |page = B3}}
The WHH joint venture entered into with Groupe Danone involved the inward investment of US$70 million in five joint venture companies in exchange for 51% Groupe Danone ownership in each company. The trademark agreement signed on 29 February 1996 gave the JVs the exclusive rights of production, distribution and sales of products under the Wahaha brand.{{cite press release | url=http://www.danone.com/wps/portal/jump/DanoneCorporateIntl.Press.Commun2004PressReleases?ref=CMS.DanoneCorporateIntl.Press.2006PressReleases.Trimestre1.CP_100407 | publisher=Danone Group | title=Groupe DANONE confirms being in negotiations with its Chinese partner in beverages, Mr. Zong | date=10 April 2007 | access-date=11 April 2007 | archive-date=27 May 2007 | archive-url=https://web.archive.org/web/20070527000608/http://www.danone.com/wps/portal/jump/DanoneCorporateIntl.Press.Commun2004PressReleases?ref=CMS.DanoneCorporateIntl.Press.2006PressReleases.Trimestre1.CP_100407 | url-status=dead }} Collaboration has grown into 39 joint venture entities by 2007.
In 2007, the relationship turned sour. Danone had accused Wahaha of "secretly operating a set of parallel companies that mirrored the joint venture's operations with virtually identical products and siphoned off as much as $100 million from the partnership." Danone and Wahaha reached a settlement and dissolved their partnership. Zong resigned as chairman of the joint ventures on 5 June 2007.{{cite press release | url=http://www.danone.com/wps/portal/jump/DanoneCorporateIntl.Press.Commun2004PressReleases?ref=CMS.DanoneCorporateIntl.Press.2006PressReleases.Trimestre1.CP_120607 | publisher=Danone Group | title=current developments regarding Wahaha dispute | date=12 June 2007 | access-date=21 June 2007 | archive-date=27 September 2007 | archive-url=https://web.archive.org/web/20070927210545/http://www.danone.com/wps/portal/jump/DanoneCorporateIntl.Press.Commun2004PressReleases?ref=CMS.DanoneCorporateIntl.Press.2006PressReleases.Trimestre1.CP_120607 | url-status=dead }}
Forbes named Zong as China's richest man in 2010.[http://www.chinadaily.com.cn/m/hangzhou/e/2010-03/12/content_9583215.htm "Zong Qinghou tops Forbes' mainland rich list"] {{Webarchive|url=https://web.archive.org/web/20100317041450/http://www.chinadaily.com.cn/m/hangzhou/e/2010-03/12/content_9583215.htm |date=17 March 2010 }} China Daily, 12 March 2010 He was ranked as China's richest man in 2012 and second-richest in 2013, according to the China Rich List, published by Hurun Report.[http://hurun.net/EN/HuList.aspx Rich List 2013] {{Webarchive|url=https://web.archive.org/web/20140831000018/http://hurun.net/EN/HuList.aspx |date=31 August 2014 }}, Hurun Report, China Rich List, 5 August 2014
Personal life
File:娃哈哈集团创始人董事长宗庆后逝世 曾勉励年轻人创业需要吃苦精神.webm, China News Service. ]]
Zong served as a delegate to the Chinese National People's Congress from 2002 to 2018.{{Cite web |date=25 February 2024 |title=Zong Qinghou, Chinese billionaire founder of Wahaha beverage group, dead at 79 |url=https://www.scmp.com/business/china-business/article/3253122/zong-qinghou-billionaire-founder-chinese-drinks-giant-wahaha-group-dies-79 |access-date=25 February 2024 |website=South China Morning Post |language=en |archive-date=25 February 2024 |archive-url=https://web.archive.org/web/20240225060002/https://www.scmp.com/business/china-business/article/3253122/zong-qinghou-billionaire-founder-chinese-drinks-giant-wahaha-group-dies-79 |url-status=live }}
Zong was married to Shi Youzhen ({{zh|s=施幼珍|labels=no}}), and they had one child, a daughter, Fuli (Kelly) Zong ({{zh|s=宗馥莉|labels=no}}). Shi was purchasing manager at Wahaha.Russell Flannery, [https://web.archive.org/web/20070630190417/http://www.forbes.com/markets/2007/06/18/wahaha-zong-wu-markets-equity-cx_rf_0618markets49.html "How To Lose In China"], Forbes, 18 June 2007. Retrieved 21 June 2007. Zong once held permanent resident status in the United States, which he had obtained to make it easier for him to travel to the country and look after his investments there.{{cite news|url=http://www.worldjournal.com/view/aChinanews/21863284/article-%E5%AE%97%E6%85%B6%E5%BE%8C%EF%BC%9A%E5%B7%B2%E7%84%A1%E7%B6%A0%E5%8D%A1-%E4%B8%8D%E6%9C%83%E7%A7%BB%E6%B0%91%E6%B5%B7%E5%A4%96|script-title=zh:宗慶後：已無綠卡 不會移民海外|trans-title=Zong Qinghou: I have no green card and will not emigrate|work=World Journal|date=4 March 2013|access-date=4 March 2013|archive-date=8 May 2013|archive-url=https://web.archive.org/web/20130508235331/http://www.worldjournal.com/view/aChinanews/21863284/article-%E5%AE%97%E6%85%B6%E5%BE%8C%EF%BC%9A%E5%B7%B2%E7%84%A1%E7%B6%A0%E5%8D%A1-%E4%B8%8D%E6%9C%83%E7%A7%BB%E6%B0%91%E6%B5%B7%E5%A4%96|url-status=live}} His daughter attended Pepperdine University in Southern California and was naturalized as a U.S. citizen, but later moved back to China and in 2007 began the procedure to renounce her U.S. citizenship.{{cite news|url=http://finance.sina.com.cn/review/20070720/10533805164.shtml|script-title=zh:宗庆后女儿为啥不早点放弃美国国籍|trans-title=Why Zong Qinghou's daughter didn't renounce U.S. citizenship sooner|work=China Business Times|date=20 July 2007|access-date=4 March 2013|archive-date=14 October 2013|archive-url=https://web.archive.org/web/20131014053057/http://finance.sina.com.cn/review/20070720/10533805164.shtml|url-status=live}}{{cite journal|url=https://www.federalregister.gov/articles/2010/11/10/2010-28316/quarterly-publication-of-individuals-who-have-chosen-to-expatriate-as-required-by-section-6039g|author=Angie Kaminski, Internal Revenue Service|title=Quarterly Publication of Individuals, Who Have Chosen To Expatriate, as Required by Section 6039G|journal=Federal Register|volume=75|page=69160|date=10 November 2010|access-date=4 March 2013|archive-date=12 October 2013|archive-url=https://web.archive.org/web/20131012080532/https://www.federalregister.gov/articles/2010/11/10/2010-28316/quarterly-publication-of-individuals-who-have-chosen-to-expatriate-as-required-by-section-6039g|url-status=live}} Zong gained wide support as he played the role of "David" against a French "Goliath" gobbling up Chinese companies. However, with the revelation of his green card in 2008, public perceptions changed and his reputation suffered.Ma Wenluo, [http://www.chinastakes.com/story.aspx?id=455 "The Great Green Card Debate in Greater China"], Chinastakes.com, 23 June 2008. Retrieved 3 July 2008. In 2013, he stated that because he did not re-enter the U.S. for several years, his status was thus deemed abandoned.
Zong stated that he lived on less than $6,000 per year, attributing his thriftiness to the teachings of Mao Zedong.{{Rp|page=97}} Zong also emphasized cost-cutting measures in his approach to business, describing cost control as a key element in Wahaha's operations.{{Rp|pages=97–98}}
Zong Qinghou died on 25 February 2024, at the age of 78.{{cite news |last= |first= |date=25 February 2024 |script-title=zh:娃哈哈创始人宗庆后病逝 |trans-title=Zong Qinghou, the founder of Wahaha Group, passed away |url=https://www.zaobao.com.sg/realtime/china/story20240225-1470234 |language=zh |work=Lianhe Zaobao |location= |access-date= |archive-date=25 February 2024 |archive-url=https://web.archive.org/web/20240225041848/https://www.zaobao.com.sg/realtime/china/story20240225-1470234 |url-status=live }}
=Tax evasion allegations=
Zong claimed to have been paid a salary of €3,000 and €100,000 annual allowances plus a bonus worth 1% of the annual profit of the joint ventures, totaling 70 million yuan of income every year.Wang Zhenghua, [http://www.chinadaily.com.cn/cndy/2008-04/15/content_6616433.htm "Drinks magnate probed over tax"] {{Webarchive|url=https://web.archive.org/web/20150104190514/http://www.chinadaily.com.cn/cndy/2008-04/15/content_6616433.htm |date=4 January 2015 }}, China Daily, 15 April 2008. Retrieved 3 July 2008
Caijing reported in April 2008 that Zong was being investigated for allegedly evading taxes amounting to some ¥ 300 million. An investigator had alleged that Zong "...earned far more than this and hasn't fully reported the tax for years". Caijing implied there may have been less than transparent payments through a web of Hong Kong-registered accounts of Zong, Shi, daughter Fuli, and the former Party secretary of Wahaha, Du Jianying. Zong had apparently paid more than 200 million yuan in back taxes in October 2007, after the investigation kicked off. However, the magazine suspected Zong still owed millions more.
Honorary titles
- National Excellent Entrepreneur
- National Excellent Manager
- Model of Patriotism to Support the Armed Forces
- Outstanding Builder of Socialism with Chinese Characteristics
- The First Chinese Entrepreneurs Entrepreneurship Prize
References
{{Reflist}}
{{Authority control}}
{{DEFAULTSORT:Zong, Qinghou}}
Category:Hangzhou Wahaha Group people
Category:Businesspeople from Hangzhou
Category:Businesspeople in the drink industry
Category:Chinese chief executives
Category:Delegates to the 12th National People's Congress
Category:Delegates to the 11th National People's Congress
Category:Delegates to the 10th National People's Congress
Category:Billionaires from Zhejiang
Category:Politicians from Hangzhou
Category:People's Republic of China politicians from Zhejiang
Category:20th-century Chinese businesspeople
Category:21st-century Chinese businesspeople