The mainland’s rising e-commerce giant, East Buy, which successfully transformed from the education and training industry to live streaming sales, is currently experiencing internal turmoil. Chairman Yu Minhong has taken decisive action by removing East Buy’s CEO, Sun Dongxu, and personally taking over the position. Yu Minhong has also publicly apologized to fans online and joined forces with the aggrieved party, Dong Yuhui, in a live broadcast, attempting to salvage the situation.
Due to the explosive growth of the live streaming sales industry and the prominent figures involved, such as New Oriental, Yu Minhong, and Dong Yuhui, who are all mainland influencers, this incident has become the headline in mainland public opinion in the past two days. Hu Xijin, a prominent figure in the public opinion arena, although retired from the position of editor-in-chief of the Global Times, remains active in the public discourse and naturally seized upon this topic.
Hu Xijin believes that New Oriental has already learned from this incident, and under the leadership of Yu Minhong, efforts are being made to remedy the situation. He hopes that this incident will not cause significant internal divisions within East Buy. He urges Dong Yuhui to recognize his role as the weaker party in this conflict, to use this role wisely, not to be oppressed or marginalized by Sun Dongxu and the team, and not to excessively pursue personal gains. Instead, he should prioritize the overall interests of the company and continue contributing to East Buy.
In Hu Xijin’s view, Dong Yuhui has built his image by appealing to sentiment and positioning himself as a cultural figure. Unlike another mainland live streaming influencer, Li Jiaqi, who relies purely on commercial traffic, Dong Yuhui cannot be too focused on wealth; he cannot chase after money. If Dong Yuhui excessively pursues personal gains, leading to a breakup with East Buy, his role as the underdog will quickly collapse, and his aura will dissipate. He risks being abandoned by his fans, causing significant losses for East Buy and Yu Minhong. Therefore, Hu Xijin does not recommend Dong Yuhui to take the path of “starting a new venture.”
In all fairness, Hu Xijin’s advice is well-intentioned, presenting a “three-good plan” for the benefit of East Buy, Yu Minhong, and Dong Yuhui. If Dong Yuhui chooses to go solo, as predicted by Hu Xijin, East Buy could plummet, and Yu Minhong would face public criticism and financial pressure to rebuild from scratch. Dong Yuhui, on the other hand, might encounter unpredictable market risks, such as the risk of losing his halo, entrepreneurial failure, or a fallout with new investors and partners.
However, hope is one aspect, and reality is another. Hu Xijin’s hope overlooks a fundamental reality—the human factor and the unique business nature of the live streaming industry, centered around intellectual property (IP) as a core competitive advantage.
The current crisis at East Buy originated from a lack of understanding of human nature and Yu Minhong’s recognition of this business attribute. Dong Yuhui has been marginalized within the team for at least three main reasons:
1. His sudden rise led to jealousy within the team, including Sun Dongxu. People often do not envy the wealth of strangers, but sudden fame and wealth among familiar people can provoke intense jealousy.
2. In the process, as Dong Yuhui’s core values and social status formed with millions of fans as a foundation, his attitude and behavior began to change. This exacerbated the disharmonious atmosphere with team members, including conflicts with Sun Dongxu.
3. The primary reason, and the most fundamental one, is that Yu Minhong (and Sun Dongxu, who executed his will) considered the company’s stability and attempted to reduce excessive reliance on the significant IP, Dong Yuhui. They sought to gradually “de-Dong Yuhui” the company. However, Sun Dongxu’s approach was poorly executed, and Dong Yuhui and his fans saw through the scheme, causing dissatisfaction and a riot. Yu Minhong had no choice but to pacify the situation using Sun Dongxu’s head.
Currently, there is a rift between Dong Yuhui and the team and Yu Minhong. Can this rift be repaired? If Dong Yuhui chooses to stay at East Buy, will his treatment meet his expectations? How much equity and managerial autonomy will Yu Minhong provide him? Will he sacrifice the entire team to accommodate Dong Yuhui personally?
Influenced by this incident, won’t Yu Minhong continue, in a more concealed and resolute manner, the process of “de-Dong Yuhui”? Won’t Dong Yuhui suffer even more? Throughout history and the business world, there has never been a dynasty or business entity that, having lost trust, could maintain close cooperation based solely on financial ties. No emperor or corporate leader, once overthrown by subordinates, could escape threats after turning their backs. Can Dong Yuhui and Yu Minhong be an exception?
Especially in the live streaming industry, where IP is the core value, so many individuals and organizations have extended an olive branch to Dong Yuhui. If he expresses willingness to join or go solo, his income will instantly multiply, and starting capital of tens of billions will flood in. Can he resist such a huge temptation?
From a basic human nature perspective, the answers to the above questions are not difficult to discern. In fact, observing the interaction between Yu Minhong and Dong Yuhui after the internal strife, it is evident that Yu Minhong has consistently stated that Dong Yuhui will not leave East Buy, while Dong Yuhui has not responded in kind. This includes the period when the two collaborated in a live broadcast, where the situation became quite clear.
Given this, Hu Xijin’s advice and recommendations may very well fall on deaf ears, and Yu Minhong’s crisis management may only temporarily stabilize the situation. Even if Dong Yuhui does not leave today, he may leave tomorrow—either voluntarily or involuntarily. In Chinese history, such scenarios are too numerous to count!