In a recent string of events, Chinese mainland entrepreneurs have been repeatedly encountering legal troubles. Zhao Long, chairman of Huichen Group, was recently detained on suspicion of violating disclosure regulations and withholding crucial information.
On July 17, Huichen Group (688500.SH) announced that on July 16, they received notification from Zhao Long’s family members, the actual controlling shareholder and chairman of the company, that the Haidian Branch of the Beijing Public Security Bureau issued a “Detention Notice” on July 16, 2026. Zhao Long was criminally detained for suspected violations of disclosure regulations and withholding important information.
Public records show that Zhao Long, born in February 1976, holds Chinese nationality and has no permanent residency abroad. From September 1999 to December 2008, he worked at Beijing Huicong International Information Co., Ltd., holding various positions such as researcher, research manager, director of IT research institute, deputy dean of the research institute, and dean of the research institute. In January 2009, he joined Beijing Huichen Zidao Information Co., Ltd., where he currently serves as the chairman and general manager.
In the year 2025, Zhao Long’s total pre-tax compensation amounted to 965,200 yuan.
In 2023, Huichen Group was fined 5 million yuan and issued a warning for financial fraud, with Zhao Long personally fined 3 million yuan.
In recent years, many Chinese private entrepreneurs have faced legal issues.
For example, Li Zhaoting, the former richest man in Shijiazhuang and the actual controller of Dongxu Group, was detained by the Shijiazhuang Police on February 13, 2026, over financial fraud issues within the Dongxu group.
Zhang Jun, the actual controller of Zuojiang Technology, was detained by the Xicheng Branch of the Beijing Public Security Bureau in January 2026 for suspected violations of disclosure regulations and withholding important information.
Zhang Jin, the former richest man in Guangzhou and the actual controller of the Xuesong group, was arrested in 2023 and sentenced to life imprisonment in February 2026, with the final judgment upheld in June. The collapse of the multi-billion-dollar Xuesong empire was linked to illegal public fund solicitation and fraud.
Zhuo Weilong, the actual controller of Zhuojin Group, was sentenced to one year in prison with a one-year probation on May 22, 2026, for violating disclosure regulations.
Dai Xuebin, the actual controller of Lanrun Group, was criminally detained by the Dazhou Public Security Bureau in May 2026.
Hu Xingrong, the actual controller of Duofu Group/ST Hailong, was arrested in July 2026.
Lin Xiucheng, the actual controller of Sanan Optoelectronics, was detained in March 2026, and subsequently his son-in-law (general manager) was also detained.
Wang Liping, the actual controller of Changzhou’s wealthiest man Hengli Hydraulics, was placed under supervision by the Jiangsu Provincial Supervision Commission in March 2026.
On the evening of September 28, 2025, Xinguang Optoelectronics announced that its major shareholder, actual controller, chairman, and general manager Kang Weimin was placed under supervision.
On August 22, 2025, Taihe Group announced that its chairman and general manager Huang Qisen was under supervision by the Xinmin City Supervision Committee of Liaoning Province for suspected illegal activities.
In July 2025, Liu Bing, chairman of Chengdu Fosenmei Home Furnishing Co., Ltd., was also placed under supervision.
Lu Yong, the actual controller, chairman, and CEO of Shiming Technology, was placed under supervision in July 2025.
On May 13, 2025, Hongxing Meikailong Home Furnishing Group announced that its director and general manager Che Jianxing was placed under supervision.
The “supervision” system was established by the Chinese Communist Party’s 2018 “Supervision Law” to replace the previous “shuanggui,” a form of extralegal detention. “Supervision” is seen as a detention method outside the legal system, primarily targeting ordinary citizens, especially private entrepreneurs.
Data from the CPC Central Commission for Discipline Inspection shows a nearly 50% increase in the national usage of the “supervision” system in 2024 compared to 2023. In 2025, the nationwide supervision reached 47,000 people, an increase of 9,000 from 2024, accounting for approximately a 24% growth.
On April 18, 2025, Juran Zhijia announced that its actual controller, chairman, and CEO Wang Linpeng was placed under supervision by the Jianghan District Supervision Committee of Wuhan. Wang Linpeng committed suicide by jumping off a building on July 27 after being released from supervision.
According to sources familiar with the matter, Wang Linpeng suffered mental breakdown, physical disability, and reached a point of unbearable suffering during his period of “supervision.”