What the controversy surrounding a prominent influencer reveals about the current state of China’s economy.

Li Jiaqi, known as the “Lipstick King,” is among China’s most accomplished salespersons.

Authored by Kelly Ng and Fan Wang in Singapore.

One of China’s most prominent social media personalities is facing criticism for brushing off a young follower’s complaint about expensive cosmetics as “unimportant.”

One of China’s most popular online personalities, Li Jiaqi, faced criticism for dismissing a young follower’s complaint about the high cost of makeup, suggesting they hadn’t worked hard enough if they couldn’t afford a 79 yuan ($11; £9) eyebrow pencil. This comment struck a chord with many Chinese youth who are grappling with joblessness in a struggling post-pandemic economy. While Li, a 31-year-old livestreamer, has since apologized, his remarks continue to generate debate.

“People were hurt not by the 79 yuan price tag, but by your attitude and your judgments about us,” commented one Weibo user, a sentiment echoed by thousands.

Li’s remarks came at a time when China’s economy had been facing a series of challenges over the past six months. Youth unemployment reached a record high, with over one in five 16-to-24-year-olds unemployed as of July. Additionally, officials had decided to temporarily halt the publication of unemployment data. The property sector, once a pillar of China’s wealth, was on the verge of a crisis, leading economists to lower their growth forecasts, many falling below the government’s target of about 5%.

Li, who gained fame in 2017 through online sales sessions on Taobao, is one of China’s most successful online salesmen. He markets various products, from food to cosmetics and homeware, reportedly selling millions of dollars’ worth of items nightly. Despite once being dubbed the “Lipstick King” for selling 150,000 lipsticks in five minutes, Li has seen a decline in his follower count since his controversial comments.

Critics argue that Li’s celebrity status has desensitized him to the struggles faced by millions of young Chinese. The backlash also reflects the widespread disillusionment among the country’s youth, with one tweet stating, “In social media comments responding to the Li Jiaqi incident, I saw a China that’s collapsing.”

The controversy began during a livestream sales pitch for a Florasis eyebrow pencil when Li responded to a viewer’s comment about the pencil being too expensive. He defended the price, chastised the viewer for their complaint, and suggested they hadn’t received a pay raise because they hadn’t worked hard enough.

Unemployment affects over 20% of young Chinese individuals aged 16 to 24.

“It’s been the same price all these years! This is driving me crazy,” he exclaimed, ending his outburst, which also surprised his co-host, as seen in a widely-shared clip of the incident.

Criticism quickly erupted online following the livestream, leading to the emergence of various hashtags on Weibo. A significant portion of Li’s vast following comprises young Chinese women who have also been adversely affected by the economic slowdown.

Many users shared their struggles in making ends meet and expressed frustration that their salaries didn’t reflect their hard work. One user remarked, “The lack of pay increase isn’t due to our lack of effort. I haven’t received a raise in three years, and the prices of everything have skyrocketed… Nowadays, I only buy essential items, and I no longer participate in major sales.”

State media also joined the conversation, with CCTV criticizing Li. They stated in a commentary on their website, “Many internet celebrities and anchors were humble before they made money, but became very arrogant after earning money… and are bound to be disliked.”

Li has a history of controversy. In June of the previous year, he displayed a tank-shaped ice cream cake on his show just hours before the anniversary of the Tiananmen Square crackdown.

Even after decades, all references to the Tiananmen protests or their aftermath remain a censored and sensitive topic in China. Li’s broadcast of the tank-shaped cake was abruptly cut, and he disappeared for three months before making a return to the screen in September of that year.

A significant portion of Li Jiaqi’s extensive follower base consists of young Chinese women.

Following the recent controversy, Li Jiaqi issued a written apology on Monday morning, acknowledging that his comments were “inappropriate.” He expressed, “I am well aware that everyone’s work is tough… I’m really sorry that what I said failed you all.”

Later that day, he revisited the issue during a livestream, stating that it was “not [his] place to judge” anyone on the Internet.

However, the uproar did not subside. Li’s remarks continued to circulate widely on Tuesday, prompting many individuals to call for a boycott of his livestream channel. A Weibo user using the handle Baixiwen expressed, “We do not expect Li to be empathetic to our situation.”

“Many of us work just as hard as [Li] does. We are simply not fortunate enough to attain his level of success. For many people, financial hardship is not a choice,” wrote another Weibo user.

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