LeEco meltdown: Shanghai freezes $182 million in assets - China’s latest business and technology news - SupChina

LeEco meltdown: Shanghai freezes $182 million in assets – China’s latest business and technology news


A court in Shanghai has “frozen $182 million in assets tied to the chairman of the Chinese technology company LeEco after one of its affiliates missed loan payments,” according to the New York Times (paywall). LeEco and its chairman, Jia Yueting 贾跃亭, are in the midst of a months-long downward spiral of risky loans and overly ambitious expansion plans. LeEco, which started as a small video-streaming company in 2004, had aimed to expand to a dizzying range of products, including drones, electric and self-driving cars, “smart” bikes, and VR headsets, while simultaneously launching an ambitious expansion program in the U.S.

For now, a spokesman for the company says it has enough collateral to cover immediate debts, but the long-term health of LeEco — and the government’s support of billionaires such as Jia — is certainly in question.

Jia may be remembered for his 2016 statements saying that Apple was “outdated” and “losing momentum.”


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Lucas Niewenhuis

Lucas Niewenhuis is an associate editor at SupChina who helps curate daily news and produce the company's newsletter, app, and website content. Previously, Lucas researched China-Africa relations at the Social Science Research Council and interned at the Council on Foreign Relations in New York. He has studied Chinese language and culture in Shanghai and Beijing, and is a graduate of the University of Michigan.

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