TikTok Founder Becomes China’s Richest as ByteDance Profits Surge

• Oct 30, 2024

Zhang Yiming, co-founder of TikTok’s parent company ByteDance, has become China’s wealthiest individual, with a personal fortune of $49.3 billion, as estimated by the Hurun Research Institute’s latest rich list. Despite stepping down from an executive role in 2021, the 41-year-old still holds about a 20% ownership stake in ByteDance, a company that has seen explosive success globally with its popular social media app, TikTok.

TikTok’s rapid rise has made it one of the world’s most widely used social media platforms, despite some nations’ concerns over its ties to the Chinese government. ByteDance and TikTok have consistently asserted their independence from state influence, yet the U.S. government has intensified its scrutiny. In fact, the U.S. recently announced plans to ban TikTok by January 2025 unless ByteDance divests its ownership, reflecting ongoing security concerns.

ByteDance’s profitability has surged, driving Zhang’s wealth up by 43% since 2023. Last year alone, ByteDance’s profits soared by 60%, cementing Zhang’s position at the top of China’s wealth ranking. Rupert Hoogewerf, head of the Hurun Research Institute, noted that Zhang is the 18th new Number One on China’s rich list in the past 26 years. “In comparison,” he added, “the U.S. has only had four people at the top over a similar period: Bill Gates, Warren Buffett, Jeff Bezos, and Elon Musk.” Hoogewerf’s comment reflects both the dynamic nature of China’s economy and the increasing influence of tech entrepreneurs like Zhang.

Zhang’s ascent to the top of China’s rich list showcases ByteDance’s massive impact, despite its challenges. In addition to TikTok’s global success, ByteDance has ventured into other areas like AI technology, online education, and gaming, diversifying its reach and solidifying its place as one of the most influential tech companies worldwide.

As TikTok’s popularity grows, so does Zhang’s wealth, underscoring ByteDance’s powerful position in the global tech market. However, potential regulatory changes, especially in the U.S., could impact ByteDance’s future. The company’s resilience in navigating these challenges will be critical in determining its continued growth and influence in the tech industry.