Yu Donglai, founder of the rapidly growing supermarket chain Pangdonglai, participated in a high-level economic forum chaired by Premier Li Qiang on July 13, highlighting the company’s role in China’s consumer market amidst broader economic challenges. The retailer, based in Xuchang city in Henan province, has drawn attention for its ethical business practices and focus on high-quality products, particularly fresh produce.

Despite operating solely within Henan, with 14 outlets in Xuchang and Xinxiang, Pangdonglai has attracted shoppers from across the province and beyond, often seeing long queues at its stores. The chain is frequently compared to Sam’s Club, the US warehouse retailer owned by Walmart, due to its emphasis on quality goods. However, unlike Sam’s Club, Pangdonglai allows customers to purchase individual items without requiring membership fees.

At the forum, Yu Donglai, aged 60, represented the retail and consumer sectors along with executives from major state-owned enterprises, including Sinopec, Sugon, and Shandong Heavy Industry Group, as well as economists. The event underscored the government’s interest in boosting domestic consumption and economic growth. Tang Dajie, a researcher at the China Enterprise Institute in Beijing, noted the rarity of private commercial firms’ participation, suggesting this reflected the authorities’ focus on stimulating consumer demand.

Tang described Pangdonglai as exemplifying an innovative corporate governance model within the private sector, emphasizing humane and flexible management rather than prioritizing branding, profits, or logistics. However, he also noted that the company’s impact remains limited by its regional scope. Tang suggested that the government’s invitation to such enterprises signals a relatively open-minded approach toward corporate governance innovation.

Yu retired from his position as general manager in February and now serves as a consultant to Pangdonglai. He has previously indicated that the company would not pursue a public listing, positioning itself instead as an “enterprise school.” In line with this philosophy and in support of common prosperity policies, Pangdonglai announced earlier this year plans to convert nearly 4 billion yuan (approximately HK$4.6 billion) of its assets into shares, granting all employees dividend rights.