The times no longer reward those who run fast; power has returned to the rule makers.

Who is the richest Chinese person, CZ?🤔

Zhao Changpeng (CZ) is the founder of Binance. In 2022, he became the richest Chinese person with a net worth of $94 billion. The Binance platform has 120 million users and daily trading volumes reach as high as $65 billion. But fortunes change, and now CZ is facing unprecedented regulatory pressure and geopolitical challenges.

Recently, CZ's business activities have become particularly cautious, and he is also making efforts to align with 'political correctness.' He collaborated with the Veterans Association to donate $2 million to establish an education fund for military families, which is clearly a gesture to appease the American political establishment. Moreover, the BNB treasury company, which he directly oversees, chose to partner with a small nicotine e-cigarette company called VAPE, raising political considerations that are truly thought-provoking 🤫.

In-depth Analysis: The 'Difficult Survival' of Chinese Entrepreneurs in the U.S. 💼

1. The Political Survival Dilemma

Currently, Chinese entrepreneurs are finding themselves in increasingly complex situations in the global market, especially in the U.S. The CEOs of American tech giants are not only required to innovate and create value for shareholders but also endure a 'purity test' regarding their stance on China. For Chinese entrepreneurs like CZ, this test is even more stringent. They must find a balance between business interests and political correctness, which often means compromising their original business models. CZ has shifted from being a free cryptocurrency pioneer to needing to please the American political system; this transformation is, in fact, a passive politicalization process.

2. Listing Strategies Under Regulatory 'Guidance'

The so-called 'guidance' is actually the comprehensive crackdown by U.S. regulatory agencies on the cryptocurrency industry, particularly on cryptocurrency platforms controlled by Chinese entities. 27% of businesses have indicated that they have already or plan to move some operations out of China, compared to only 19% in 2024, indicating a deteriorating global business environment for China. CZ's decision to go public is likely a reluctant move under regulatory pressure, seeking to increase transparency through public listing in exchange for leniency from regulatory authorities. However, such 'transparency' often means dilution of control and loss of business freedom. From Binance's global dominance to now relying on various political maneuvers to survive, this exposes the vulnerabilities of Chinese enterprises in the Western-dominated financial system.

3. Systematic Discount on Valuations of Chinese Enterprises

What is even more concerning is that Chinese enterprises are facing systematic valuation discounts in the global market. The BNB treasury company managed by CZ has a market value of only $5.308 billion, yet its daily trading volume surpasses that of traditional financial institutions valued at $112.04 billion. This huge valuation discrepancy reflects the market's bias and distrust towards companies controlled by Chinese people. Although Chinese entrepreneurs have excelled in technological innovation and business efficiency, company valuations are still negatively impacted by political factors. This valuation discount not only affects the financing capabilities of enterprises but also limits their strategic development space. CZ's choice to go public is likely an attempt to narrow this valuation gap through recognition from Western capital markets, but the cost is accepting more external constraints and political operations.

4. Implications of the Return of Power to Rule Makers

"The return of power to those who set the rules" is a profound statement. In the golden age of globalization, innovators like CZ could rise rapidly thanks to their technological advantages and market sensitivity. But the situation has changed; the Trump administration intensified restrictions on business prospects in China, with 29% of companies holding a pessimistic view of their business in China over the next five years, a historical high for this survey. This indicates that Western governments are regaining control over the rules of the business game, and Chinese entrepreneurs need to reposition themselves under these new rules. CZ's choice to go public is essentially a form of political surrender; he must accept comprehensive scrutiny and control from the Western regulatory system to survive under the new rules.

5. Strategic Transformation Pressure on Chinese Entrepreneurs

CZ's predicament is not an isolated case, but a common challenge faced by the Chinese entrepreneur community. Although Chinese entrepreneurs are active in the AI startup scene, with companies like Scale AI valued at $29 billion and World Labs founded by Fei-Fei Li receiving significant attention, these success stories often require more political maneuvering and localization strategies. Chinese entrepreneurs need to find a balance between technological innovation and political correctness, which often means compromising on their original business models and the Western political system. CZ's listing strategy could very well become a template for other Chinese entrepreneurs to follow, but the cost of this template is the politicization of entrepreneurial spirit and the constraints on business innovation.

Conclusion and Prospects 🔮

Overall, CZ's path to going public is filled with politicized 'guidance' and passive strategic adjustments. He has transformed from a freewheeling cryptocurrency innovator to an entrepreneur who relies on political maneuvering to survive, reflecting the severe challenges faced by Chinese enterprises in the current geopolitical environment. The so-called 'guidance' is essentially the comprehensive reshaping and control of Chinese enterprises by the Western regulatory system.

Looking ahead, Chinese entrepreneurs will face a more complex political survival environment. They must make difficult choices between business success and political correctness, which often requires fundamental changes to their original business models. CZ's choice to go public may temporarily alleviate regulatory pressure, but in the long run, this politicized business strategy will limit the innovation capacity and global expansion potential of Chinese enterprises. Indeed, times have changed; power has returned to the hands of those who control the rules, and Chinese entrepreneurs must learn to redefine success under these new game rules.