In a recent development, another private entrepreneur has run into trouble, as Wang Liping, the founder of Hengli Hydraulic Company and the richest man in Changzhou, Jiangsu, has been placed under detention.
On March 20, Hengli Hydraulic announced that its actual controller and chairman, Wang Liping, had been detained. The company stated that this matter would not have a significant impact on its production and operations.
Hengli Hydraulic, a publicly listed company founded and controlled by Wang Liping, started from scratch and is headquartered in Changzhou, Jiangsu. It is dedicated to the research and manufacturing of hydraulic components and systems, earning the reputation as the “king of hydraulics.”
In the first three quarters of 2025, Hengli Hydraulic achieved a revenue of 7.79 billion yuan, a 12.31% year-on-year increase, with a net profit attributable to the company of 2.087 billion yuan, up by 16.49% compared to the previous year.
In the 2025 Hurun Rich List, the Wang family ranked 54th with a wealth of 86 billion yuan, up from 76th place the previous year, securing the title of “richest in Changzhou.”
The specific reason for Wang Liping’s detention has not been disclosed by Hengli Hydraulic.
“Detention” is a form of extrajudicial detention by the Chinese Communist Party, with an increasing number of Chinese entrepreneurs being caught up in it. The British magazine The Economist revealed last year that Chinese entrepreneurs are mysteriously disappearing at an alarming rate, with almost one person being arrested every week.
Previously, the Central Commission for Discipline Inspection would use the extralegal “shuanggui” method (to detail the accused at a specified time and place), and under Xi Jinping’s administration since 2018, this has transitioned to the “detention” system implemented by the Supervision Commission. The new detention regime equally grants the power to individually detain suspects, lacking independent oversight mechanisms. However, the scope of enforcement of detainment is broader than “shuanggui,” covering officials, civil servants, managers of public schools, hospitals, sports organizations, cultural institutions, state-owned enterprises, and even ordinary citizens suspected of being corrupt.
The Spanish NGO Safeguard Defenders stated that “detention” is similar to Residential Surveillance at a Designated Location (RSDL), both involving secret locations for solitary confinement, with a maximum duration of up to six months. But “detention” operates completely outside the legal system, depriving individuals of their right to hire a lawyer. While many of the victims may not be party members, their treatment appears to fall under party affairs.
Wang Linpeng, Chairman and CEO of China Evergrande Home New Retail Group, tragically died by jumping off a building on July 27, 2025. Just four days before, he had been released from “detention” by the local Supervision Commission. An informant told Da Ji Yuan that during his period of detention, Wang Linpeng had been tortured to the point of mental breakdown, physical disability, and a state worse than death.
According to analysis by The Economist, one of the reasons for the detention of numerous business owners is that many local governments are deeply in debt. Investigators can seize the assets of entrepreneurs (and their companies), a practice referred to as “distant ocean fishing” by authorities.
In recent years, the Chinese Communist Party has also been sending out mixed signals supporting private enterprises. China expert Wang He told Da Ji Yuan that this demonstrates the thuggish nature of the CCP regime. It alternates between pulling and hitting, lacking judicial independence. Despite claiming to support private enterprises, its ultimate behavior reveals a more severe crackdown on businesses.