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Baidu Scandal Brings Business Ethics to the Forefront

Chinese search engine Baidu is under scrutiny after the death of a 21-year-old cancer patient. Many netizens blame Baidu for offering advertised space to fraudulent doctors. At the core of the Baidu Scandal lies the question: to what extent is Baidu responsible for the health of Chinese netizens?

Manya Koetse

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China’s biggest search engine Baidu is under scrutiny after the death of a 21-year-old cancer patient who was allegedly given false hope for getting better because of Baidu’s paid search results. Many netizens blame Baidu for offering advertised space to fraudulent doctors. At the core of the online discussion lies the question: to what extent is Baidu responsible for the health of China’s netizens?

Wei Zexi (魏则西) was a 21-year old student suffering a rare form of cancer called synovial sarcoma. After several unsuccessful treatments, he turned to search engine Baidu. Through one of Baidu’s paid results, Wei found a treatment at the Beijing Armed Police Corps No. 2 Hospital (武警二院) he thought could help him. According to CRI News, his friends and family came up with the 200,000 RMB (31,000US$) for the treatment, that later turned out to be ineffective and highly contested. Wei Zexi has since passed away last month.

The Wei Zexi Incident

The matter became trending on Sina Weibo on May 2 under the hashtag of ‘The Wei Zexi Incident’ (#魏则西事件#), with thousands of netizens blaming Baidu for offering a platform to shady health care providers.

According to the Wall Street Journal, the treatment that was advertised on Baidu was promoted as “the world’s most advanced”.

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The family of Wei Zexi is heartbroken after the student’s death. Chinese media posted multiple pictures of the day of Wei Zexi’s funeral.

 
Before Wei Zexi died, he posted his story on China’s popular Q&A website Zhihu on February 26. In his post, he strongly criticized the hospital that treated him, and also condemned Baidu for providing them a platform. The post attracted many reactions in late February, and resurged now that news of Wei’s death became trending.

Chinese news site The Paper spoke to Wei’s mother, who told them that Wei had not posted his critique to make money, but for the sake of warning others not to rely on Baidu for medical information.

Paid Search

Baidu (百度, literally meaning: ‘hundred times’) is China’s equivalent to Google – which is blocked in mainland China. Although there are multiple search engine services in China, such as Sogou or 360, Baidu is the market leader. Similar to Google’s ‘Adwords’, Baidu makes big money by offering different kinds of advertising, including so-called Paid Search.

For Paid Search, advertisers can choose keywords that potential customers may use to search the products or services they offer. Their ads are then displayed at the top of the ‘related search’ result lists.

When searching for ‘the flu’ on Baidu, for example, search results will include an ad for Vicks and different links to medical clinics selling medicine or providing treatment. In Wei’s case, when he searched for his rare type of cancer, he got different sites promoting the treatment at the Beijing hospital. Only when one takes a closer look it says in small characters that it concerns a link that is ‘promoted’ (Paid Search).

zhihu

It is different for Google Adwords, that has stricter policies about the promotion of healthcare and medicine on Google services:

googlehealthcare

Baidu’s social responsibility

This is the second time this year that Baidu is under scrutiny for its business ethics when it comes to advertising and medical information.

According to an online survey by Sina News, nearly half of China’s netizens (47.5%) think that Baidu should not allow medical care institutions to advertise on its search engine pages. 38.4% of the surveyees say that Baidu should inspect the quality of hospitals that appear in their search results. Only 2.8% of participants say that Baidu had no responsibility in the matter.

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Many Weibo netizens vent their frustrations about Baidu and hope for a return of Google to China: “If Google would come back to China, I would never use Baidu again,” one netizen says. Other commenters remark: “Compared to Baidu, I have more trust in Google,” and: “Let Google come back!”

There are also netizens who think it is unfair that Baidu gets all the blame for fraudulent hospitals. “Why is Baidu being targeted for something that our administration system should be responsible for?”

Drop in stocks

For Baidu, the scandal is not over yet; its CEO will be summoned by Chinese authorities for further investigation of Baidu’s business ethics. The Baidu scandal has also affected the company’s stocks, that dropped almost 8 per cent after the incident.

baidu drop

For many netizens, the ‘Wei Zexi Incident’ has gone beyond Baidu, and is now about the limitations of China’s internet in general. As one netizen says: “People used to say, ‘we don’t need Google – we’ve got Baidu, we don’t need Facebook because we have Weibo, we don’t need YouTube, we’ve got Youku – it’s ok, it’s not like we could die for using China’s own internet!’ But apparently, we can die for using it.”

– By Manya Koetse

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Featured image: by Weibo user Duanzi.

©2016 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

Manya is the founder and editor-in-chief of What's on Weibo, offering independent analysis of social trends, online media, and digital culture in China for over a decade. Subscribe to gain access to content, including the Weibo Watch newsletter, which provides deeper insights into the China trends that matter. More about Manya at manyakoetse.com or follow on X.

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1 Comment

1 Comment

  1. Rob

    May 4, 2016 at 1:24 am

    Baidu has issues; it is absolutely China-biased, and while the advert system may not be as strict, the same procedure would show up in the list of options and alternatives no matter what.

    What Wei is not doing is taking responsible for his own short-comings, and what should be at the fore here is the lack of effective researching and critical thinking skills taught to students. I had to institute researching and citation as a course for my freshmen because it did not exist and no one taught it until maybe their 4th year; this is certainly lacking in education.

    On top of this, many Chinese medical practices are questionable in general; there are doctors who promote C-sections even knowing that natural birth is preferred and has fewer complications because it is more profitable; other doctors are promoting a pharmacological solution to problems that do not need them because it is more profitable; doctors take bribes to arrange for treatments (a friend who severed his patellar ligament in Beijing had to pay 2000 RMB in gas cards to just to get into a hospital bed, even though he had insurance to cover all the expenses of the surgery and hospital stay). This to me is less an issue of Baidu and more an issue of a profit-driven, eminently corrupt, and generally ignorant medical system (and I say this as someone with a medical background who has had to use the system in Beijing both for myself and with friends).

    Wei was foolish; where was his due diligence? Yes, I get that he was dying and looking for solutions, but how may solutions did he look for? Did he check this procedure with other doctors at other hospitals? Or, like many of my students, did he simply jump on the first answer he found and followed it through to its natural result?

    If anything, this shows shortcomings in both medicine and education. Let’s stop pointing the finger at Baidu (it’s a shitty carpenter who blames his tools) and start pointing the finger where it belongs.

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China Brands, Marketing & Consumers

House of Wahaha: Zong Fuli Resigns

In the year following her father’s death, Zong Fuli dealt with controversy after controversy as the head of Chinese food & beverage giant Wahaha.

Manya Koetse

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It’s a bit like a Succession-style corporate drama 🍿.

Over the past few years, we’ve covered stories surrounding Chinese beverage giant Wahaha (娃哈哈) several times — and with good reason.

Since the passing of its much-beloved founder Zong Qinghou (宗庆后) in March 2024, the company has been caught in waves of internal turmoil.

Some context: Wahaha is regarded as a patriotic brand in China — not only because it’s the country’s equivalent of Coca-Cola or PepsiCo (they even launched their own cola in 1998 called “Future Cola” 非常可乐, with the slogan “The future will be better” 未来会更好), but also because its iconic drinks are tied to the childhood memories of millions.

Future Cola by Wahaha via Wikipedia.

There’s also the famous 2006 story when Zong Qinghou refused a buyout offer from Danone. Although the details of that deal are complex, the rejection was widely seen as Zong’s defense of a Chinese brand against foreign takeover, contributing to his status as a national business hero.

After the death of Zong, his daughter Zong Fuli, also known as Kelly Zong (宗馥莉), took over.

🔹 But Zong Fuli soon faced controversy after controversy, including revelations that Wahaha had outsourced production of some bottled water lines to cheaper contractors (link).

🔹 There was also a high-profile family inheritance dispute involving three illegitimate children of Zong Qinghou, now living in the US, who sued Zong Fuli in Hong Kong courts, claiming they were each entitled to multi-million-dollar trust funds and assets.

🔹 More legal trouble arrived when regulators and other shareholders objected to Zong Fuli using the “Wahaha” mark through subsidiaries and for new products outside officially approved channels (the company has 46% state ownership).

⚡️ The trending news of the moment is that Zong Fuli has officially resigned from all positions at Wahaha Group as chairman, legal representative, and director. She reportedly resigned on September 12, after which she started her own brand named “Wa Xiao Zong” (娃小宗). One related hashtag received over 320 million views on Weibo (#宗馥莉已经辞职#). Wahaha’s board confirmed the move on October 10, appointing Xu Simin (许思敏) as the new General Manager. Zong remains Wahaha’s second-largest shareholder.

🔹 To complicate matters further, Zong’s uncle, Zong Wei (宗伟), has now launched a rival brand — Hu Xiao Wa (沪小娃) — with product lines and distribution networks nearly identical to Wahaha’s.

As explained by Weibo blogger Tusiji (兔撕鸡大老爷), under Zong Qinghou, Wahaha relied on a family-run “feudal” system with various family-controlled factories. Zong Fuli allegedly tried to dismantle this system to centralize power, fracturing the Wahaha brand and angering both relatives and state investors.

Others also claim that Zong had already been engaged in a major “De-Wahaha-ization” (去娃哈哈化) campaign long before her resignation.

In August of this year, Zong gave an exclusive interview to Caijing (财经) magazine where she addressed leadership challenges and public controversies. In the interview, Zong spoke more about her views on running Wahaha, advocating long-term strategic growth over short-term results, and sharing her determination to not let controversy distract her from business operations. That plan seems to have failed.

While Chinese netizens are watching this family brand war unfold, many are rooting for Zong after everything she has gone through – they feel her father left her in a complicated mess after his death.

At the same time, others believe she tried to run Wahaha in a modern “Western” way and blame her for that.

For the brand image of Wahaha, the whole ordeal is a huge blow. Many people are now vowing not to buy the brand again.

As for Zong’s new brand, we’ll have to wait for the next episode in this family company drama to see how it unfolds.

By Manya Koetse

(follow on X, LinkedIn, or Instagram)

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2025 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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China Animals

China Faces Unprecedented Donkey Shortage Crisis

“We have plenty of cattle and horses in China now — just not enough donkeys” (“目前我国牛马都不缺,就缺驴”).

Manya Koetse

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China is facing a serious donkey shortage. China’s donkey population is far below market demand, and the prices of donkey-related products continue to rise.

Recently, this issue went trending on Weibo under hashtags such as “China Currently Faces a Donkey Crisis” (#我国正面临缺驴危机#).

The Donkey Branch of China’s Livestock Association (中国畜牧业协会驴业分会) addressed this issue in Chinese media earlier last week, telling China News Weekly (中国新闻周刊): “We have plenty of cattle and horses in China now — just not enough donkeys” (“目前我国牛马都不缺,就缺驴”).

China’s donkey population has plummeted by nearly 90% over the past decades, from 11.2 million in 1990 to just 1.46 million in 2023.

The massive drop is related to the modernization of China’s agricultural industry, in which the traditional role of donkeys as farming helpers — “tractors” — has diminished. As agricultural machines took over, donkeys lost their role in Chinese villages and were “laid off.”

Donkeys also reproduce slowly, and breeding them is less profitable than pigs or sheep, partly due to their small body size.

Since 2008, Africa has surpassed Asia as the world’s largest donkey-producing region. Over the years, China has increasingly relied on imports to meet its demand for donkey products, with only about 20–30% of the donkey meat on the market coming from domestic sources.

China’s demand for donkeys mostly consists of meat and hides. As for the meat — donkey meat is both popular and culturally relevant in China, especially in northern provinces, where you’ll find many donkey meat dishes, from burgers to soups to donkey meat hotpot (驴肉火锅).

However, the main driver of donkey demand is the need for hides used to produce Ejiao (阿胶) — a traditional Chinese medicine made by stewing and concentrating donkey skin. Demand for Ejiao has surged in recent years, fueling a booming industry.

China’s dwindling donkey population has contributed to widespread overhunting and illegal killings across Africa. In response, the African Union imposed a 15-year ban on donkey skin exports in February 2023 to protect the continent’s remaining donkey population.

As a result of China’s ongoing “donkey crisis,” you’ll see increased prices for donkey hides and Ejiao products, and oh, those “donkey meat burgers” you order in China might actually be horse meat nowadays. Many vendors have switched — some secretly so (although that is officially illegal).

Efforts are underway to reverse the trend, including breeding incentives in Gansu and large-scale farms in Inner Mongolia and Xinjiang.

China is also cooperating with Pakistan, one of the world’s top donkey-producing nations, and will invest $37 million in donkey breeding.

However, experts say the shortage is unlikely to be resolved in the short term.

The quote that was featured by China News Weekly — “We have cows and horses, but no donkeys” (“牛马有的是,就缺驴”) — has sparked viral discussion online, not just because of the actual crisis but also due to some wordplay in Chinese, with “cows and horses” (“牛马”) often referring to hardworking, obedient workers, while “donkey” (“驴”) is used to describe more stubborn and less willing-to-comply individuals.

Not only is this quote making the shortage a metaphor for modern workplace dynamics in China, it also reflects on the state media editor who dared to feature this as the main header for the article. One Weibo user wrote: “It’s easy to be a cow or a horse. But being a donkey takes courage.”

By Manya Koetse

(follow on X, LinkedIn, or Instagram)

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2025 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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