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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 Koetse is the editor-in-chief of www.whatsonweibo.com. She is a writer and consultant (Sinologist, MPhil) on social trends in China, with a focus on social media and digital developments, popular culture, and gender issues. Contact at manya@whatsonweibo.com, or follow on Twitter.

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1 Comment

1 Comment

  1. Avatar

    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 Digital

“Daddy Ma, Are You OK?” – Jack Ma’s Situation Discussed on Chinese Social Media

Public sentiments on Jack Ma have shifted, but the fans still defend their idol.

Manya Koetse

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Chinese tech superhero Jack Ma has become a hot topic on international social media this month since he has been missing in action for weeks, while Alibaba is facing an anti-monopoly investigation. Ma seems to have fallen out of favor, not just with authorities but also with many Chinese web users.

This month, the alleged ‘disappearance’ of Alibaba founder Jack Ma made headlines in various English-language media, from Reuters to CNN and the Financial Times.

The direct reason for speculation about Jack Ma’s whereabouts was his absence at Africa’s Business Heroes, a talent show he helped create in which Ma was part of the finale judge panel. According to FT.com, the final – which won’t be broadcasted until spring – took place in November.

Although an Alibaba spokesperson explained Ma’s absence from the show as a “schedule conflict” that made it impossible for the tech tycoon to participate, many Twitter users directly tied his ‘suspected missing’ to a critical speech he gave at the Shanghai Bund Finance Summit on October 24 of 2020.

In this speech, Ma made critical remarks on how China’s financial market is regulated and supervised. Kevin Xu at Interconnected provides an English translation of this speech here.

On November 3rd, two days before Alibaba’s fintech subsidiary Ant Group was set to raise around $37 billion with the biggest initial public offering of all time, Chinese regulators abruptly suspended the process. A report by the Wall Street Journal claimed that Chinese President Xi Jinping personally made the decision to halt the IPO of Ant Group after years of rising tensions between Ma and the government.

Pressure on Jack Ma and Alibaba further increased in December when Chinese regulators launched an anti-monopoly investigation into Alibaba and the Ant Group.

Alibaba announced the investigation of its company on its official Weibo channel on December 25 of 2020.

On December 25, People’s Daily also reported the anti-monopoly investigation. The state newspaper hosted a hashtag page about the matter on Sina Weibo (#人民日报再评阿里巴巴被调查#) which garnered over 240 million views. They wrote:

Large Internet platform companies should take the lead in strengthening industry self-discipline, in further enhancing their sense of social responsibility, and in safeguarding a favorable Internet economic ecosystem. The Internet industry has never been, and should never become, a place that is outside the law for anti-monopoly. Regarding platform economy, reinforcing anti-monopoly regulations is never a “winter” for the industry – it is just a new starting point for better and healthier development.”

Although Chinese official media have since not reported much on the issue, and have not published about Ma’s alleged ‘disappearance’, Ma’s whereabouts and his situation has become a much-discussed topic on various Chinese social media platforms.

 

Jack Ma in Short

 

Being among the top 20 richest people in the world, Jack Ma is world-famous as the founder of Alibaba, a multinational tech company specializing in e-commerce that was founded in 1999.

Jack Ma, whose Chinese name is Ma Yun 马云, was born in Hangzhou in 1964 to a family of low status. His life story has been retold in many books. Ma was bullied at school, had poor math skills, and flunked the entrance exam twice before he was accepted into the Hangzhou Teacher’s Institute, where he graduated in 1988 with a Bachelor of Arts in English.

Ma had been interested in English since he was a young boy. He would cycle to the main hotel in his city to connect with foreign tourists, acting as their local tour guide in return for English classes. The name ‘Jack’ was given to him by one of the tourist friends he made at that time.

image via kknews.cc

Ma went on to become an English teacher and barely even touched a keyboard before he traveled to the US in 1995 as an interpreter. It was during this trip that he was first introduced to the internet, after which he became inspired to set up his own commercial web site in China – a web site named ‘China Pages’ for Chinese businesses.

Although that business flopped, Jack Ma founded Alibaba in 1999, which would turn into an internet giant influencing virtually all corners of China’s digital world. The Alibaba Group now operates numerous businesses, including Taobao, TMall, AliExpress, and the Ant Group.

Ma’s success is a source of inspiration to many, and his ‘crazy Jack’ energetic behavior and willingness to make fun of himself has only made him and his story all the more captivating.

A younger Ma in one of his fun song-and-dance appearances – as Snow White.

Ma officially stepped down as Alibaba’s CEO in 2019 but is still the company’s largest individual shareholder.

 

“What’s up with Ma Yun?”

 

Until recently, Jack Ma was one of the more popular Chinese celebrities on social media. Jack Ma quotes, memes, videos, or stories would frequently go viral.

As one of the most respected and powerful entrepreneurs of China, bookstores have entire sections dedicated to Jack Ma and his role as a business magnate, the richest man of China, and also as a welldoer and an inspiring influential.

Books about Jack Ma.

Whatever Ma would say or do would go trending, with many people praising what he did, what he said, or where he went.

In 2017, the meeting between US President Trump and Alibaba’s Ma was a big topic of discussion, with many Chinese web users taking pride in Ma’s meeting with Trump, calling him the perfect ambassador to China in their dealings with Trump. “Ma Yun [Jack Ma] for president!” was a much recurring phrase.

It is a phrase you won’t read as much, if at all, on Chinese social media these days anymore. The silence surrounding Jack Ma recently has led to speculation and reflections on his current situation.

On Chinese search engine Baidu, the search prediction reflects web users’ confusion over his whereabouts; upon searching for ‘Ma Yun’ in the first week of January, the first five automatic predictions are the following:

– Jack Ma fled abroad
– Did Jack Ma really flee abroad?
– Jack Ma sentenced to prison
– Jack Ma disappeared
– Jack Ma Shanghai Bund speech

On Douyin (the Chinese TikTok), the first sentence to come up when searching for Ma Yun, is “What’s up with Ma Yun?”

On Weibo, where Jack Ma has over 26.4 million followers on his official account, there have not been any new posts since October 17. But Ma’s last post, which talks about an educational event, is still attracting new comments every few minutes.

“Daddy Ma, come on, ok? We’re rooting for you,” one commenter writes.

“We haven’t seen you in a long time, Brother Ma,” some write: “When will you come back into the public arena?”, with others saying: “Teacher Ma, what happened?”

But besides the messages from those who seem concerned about the well-being of the tech tycoon, there are many angry ones.

Some blame Ma for praising the ‘996’ work system (working from 9am-9pm, 6 days a week). In 2019, Ma called the 12-hour working day a “blessing,” causing much controversy online. Because the death of a young employee at Pinduoduo was also linked to her long working hours, the ‘996’ work system is a hot topic this week, with many condemning how Chinese tech companies are exploiting their employees and revisiting Ma’s 2019 comments.

Others also turn to Jack Ma’s Weibo page to complain about the shutdown of Alibaba’s music streaming app Xiami. Although Xiami only holds a small percentage of China’s music streaming market – apps such as QQ Music and KuGou are more popular – there are still many people who have been using the app for years and hate to see it go: “Why can’t you give it another chance, why can’t you take care of our Xiami!?”

And then there are those commenters who, in light of the recent developments and anti-monopoly investigations, call Ma a “greedy capitalist” and a “bloodsucker.” “Maybe he’ll be punished,” one person writes: “Is that a ‘blessing’ too?” “I went from being a fan to a hater,” another commenter writes, with others calling him an opportunist.

 

Changing Sentiments on Social Media

 

Jack Ma used to be an idol for many young people in China, but now it seems they have started to oppose him. On the Chinese video sharing site Bilibili, mainly used by younger generations, comments appearing in some videos featuring Ma are filled with anger and scolding.

This shift in Ma’s popularity among young people was recently also explained by young Chinese vlogger Yu He in this video, who argues that young people do not adore Jack Ma in the same way older Chinese people do.

Ma’s vision of working really hard, praising the ‘996’ work culture, and “everybody can be successful if you really try hard” was an inspiration to previous generations, but many post-90s people in China today – who are struggling in a highly competitive job market – do not have a lot of faith in Ma’s work philosophy when their everyday lives are not about working to live, but about living to work. To them, Ma’s ideas about working around the clock to get further in life do not make sense, as some feel they are working themselves to death while others get rich.

There is also anger over consumer lending platform Huabei, a product of Alibaba’s Ant Group. Huabei previously encouraged users to spend more money in its ads, and its platform makes it very easy to spend money first and pay it back later – even for those who might not oversee the long-term consequences of excessive debt.

The question of why Jack Ma seems to have fallen out of favor with many Chinese people is also a topic of discussion on question-and-answer platform Zhihu.com.

One popular analysis by the e-commerce account Zhiser claims that Jack Ma used to be supported by the ordinary people because he made it possible for so many of them to make money through the Taobao marketplace platform, which started in 2003. Alibaba’s Alipay online payment platform made it possible for common people to conveniently transfer money without extra fees.

But over recent years, Zhiser argues, Alibaba’s business strategies have changed in such a way that its own profits are maximized and small sellers are negatively impacted.

With the arrival and growth of Alibaba’s Tmall, where only brand owners or authorized dealers can open an online store & where transaction commissions are much higher, the traffic of small sellers on the Taobao marketplace has been reduced. Alibaba’s activities are increasingly focused on benefiting the bigger companies – and itself -, while small entrepreneurs are increasingly struggling to be noticed and make money.

Without the means to open their own Tmall shop, without the capital to afford advertisement and paid promotions for their shops, the small sellers are watching helplessly how the big boys dominate the platform algorithms and take the money, Zhiser explains.

Alibaba is now also increasingly focusing on the fruit & vegetable market. There’s Alibaba’s Hema Fresh supermarket brand, for example, with big plans to open hundreds of stores nationwide in the upcoming years. The rise of Alibaba’s fresh food businesses directly impacts the livelihood of ten thousands of ordinary Chinese who have their own small vegetable shops or street stalls – exactly those people who are already in vulnerable social groups.

Although the rise of Alibaba was once a great opportunity for common people, the changing business strategies have now resulted in Jack Ma getting more enemies, including small entrepreneurs, small sellers and buyers, offline shops, offline vendors, etc.

For them, the ‘Alibaba dream’ of using the power of the Internet and technological advancement to enable small businesses and young people to share the benefits of free trade has lost credibility.

“These years, Jack Ma has played the role of the destroyer rather than the savior,” the author writes. His article received over 10,500 endorsements.

Zhiser’s article reflects a perspective that surfaces in many places. “We believed him, that he really was making things better for us,” another blogger writes.

Others think that Jack Ma was true about his intentions and dreams when he was a teacher and then started his business, but changed when he became surrounded by money-driven big investors, causing him to become alienated from his former ideas and philosophies, losing touch with China’s younger generation, the small shop owners he promised to serve and the ordinary people.

 

“He changed China, he changed the world”

 

Despite the recent criticism of Ma, many people still defend and support him. There are even those who criticize him but still express their admiration for him.

Regarding the criticism coming from post-90s generations, one Chinese web user commented:

You have no idea what it was like before Jack Ma came around. You’re too young to know. If you want to go back [in that time], I suggest you go live on the moon.”

Discussing the changing sentiments regarding Ma, Zhihu author Qing Rui writes:

Jack Ma is a great entrepreneur of this era. He changed China, he changed the world. A lot of nonsensical people scold him for damaging China’s real economy, while he’s actually worked hard to improve the efficiency of the business sector, which has not only greatly boosted the real economy, but also greatly improved the living standards of the Chinese people.”

It is a sentiment shared by many, who express that they think the recent shift in views on Ma is uncalled for, or reminding people of the positive effect Ma and his businesses have had on China’s development.

“Those who scold Jack Ma are brainless idiots,” some write.

“How is it possible for the public opinion on Daddy Ma shifting 180 degrees? It’s like throwing stones at someone who fell down,” one Weibo user from Shenyang writes.

Although perhaps less crowded than before, online ‘Ma Yun Fanclubs’ are still active. One Weibo fan writes: “Let’s all hope our favorite idol Ma Yun will smoothly sail through this crisis!”

As for the ‘disappearance’ of Jack Ma that has previously been reported – although Ma has not been out in public, it is highly unlikely that he is actually missing.

CNBC reported on January 5 that the Chinese billionaire is lying low, according to a person familiar with the matter.

When famous Chinese actress Fan Bingbing got caught up in a tax evasion scandal in 2018, her ‘disappearance’ also made headlines in international media. After months of silence and wild rumors, the actress returned to social media with a public apology. She was ordered to pay taxes and fines worth hundreds of millions of yuan.

Meanwhile, Jack Ma’s Weibo page is still receiving dozens of new messages. In between the “evil capitalist” scoldings, there are some who really hope Ma will come back to public life soon: “We’ll support you, teacher Ma, don’t give up!”

 

By Manya Koetse

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China Digital

Pinduoduo Employee’s Suicide Intensifies Online Debate on Company’s Working Culture

For the second time this month, Pinduoduo makes headlines for the death of an employee.

Manya Koetse

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The suicide of a Pinduoduo staff member is trending today on Chinese social media, where discussions on tough ‘996’ working schedules (working 9am-9pm, 6 days a week) have been ongoing since the sudden death of another employee.

The staff member named Tan (谭) reportedly jumped from the 27th floor of an apartment building in his hometown of Changsha in Hunan province, where he had arrived that same day. The incident occurred around 0:30 AM 12:30 pm on January 9.

Pinduoduo published a statement about the death of their employee, expressing their condolences. They also said they were awaiting the results of the ongoing investigation into the death of Tan.

Meanwhile, the company stated they would immediately open a special channel within their office system for psychological support and consultation.

Tan had been working at Pinduoduo since July of last year as a technology development engineer. He was unmarried.

Pinduoduo is China’s largest interactive online shopping platform. The company has been under fire on social media recently, with stories coming out on the company’s overwork culture that is putting an enormous strain on its employees.

The death of a 22-year-old female staff member, who suddenly collapsed after a long day of work on December 29, is still being investigated. Although no official cause of death has been given, her death has been linked to Pinduoduo’s extreme working culture.

“A Second Foxconn?”

Since Pinduoduo is making headlines again for another employee death, people on Weibo are now mentioning the electronics manufacturer Foxconn (富士康). Foxconn attracted major media attention after a series of employee suicides in 2010 and 2012 linked to low pay and poor working conditions.

On Weibo, many commenters wonder if Pinduoduo is becoming a second Foxconn.

Meanwhile, more staff members are speaking out about Pinduoduo’s working culture. The stories of former employees of the company’s community group buying unit Duoduo Maicai (多多买菜) were shared by Sohu News. They talk about 12-hour workdays and “supersize” work weeks (超级大小周) where staff would work 13 days in a row, then get one day off, or not getting days off at all. They also speak of requirements to minimally work 300 hours per month.

Despite the waves of criticism on Pinduoduo, there are also online voices who praise the company for bringing out a clear and honest statement right after the death of their employee and opening up a support channel for staff members.

Update January 11:

In an updated statement released to the media, Pinduoduo states that their employee had applied for leave from his supervisor on January 8 at 8:37 a.m., without giving a reason. He reportedly passed the probationary period and was a high achiever who received an average 80 out of 100 assessments at the company.

The company also states that when their support team flew to Changsha to provide assistance to the family, they learned that the employee already booked his return flight for January 9 from Changsha to Shanghai.

 
By Manya Koetse, with contributions by Miranda Barnes

 

For information and support on mental health and suicide, international helplines can be found at www.befrienders.org.

 

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.

©2021 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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