Xu Lei, who was recently promoted to president after more than a decade at the company, takes the helm of the e-commerce titan effective immediately. Liu’s lieutenant joins JD’s six-member board while Liu remains chairman, the company said in a filing Thursday. Its shares slid as much as 2.9% in early Hong Kong trading.

Some of China’s richest entrepreneurs have relinquished the reins of their companies in the past two years, after Xi Jinping’s administration trained its sights on arenas from e-commerce to gaming, seeking to curb the growing influence of internet firms. 

ByteDance Ltd. founder Zhang Yiming stepped down as chairman last year, months after resigning as chief executive officer of the TikTok owner. Kuaishou Technology founder Su Hua ceded leadership to fellow co-founder Cheng Yixiao. And Colin Huang, who founded e-commerce upstart Pinduoduo Inc., dropped his CEO role in 2020 ahead of Beijing’s crackdown. 

Liu himself had gradually stepped back from day-to-day operations since he was accused of rape in 2018, a charge the billionaire has denied. The leadership reshuffle marks a further retreat from the online shopping empire he founded in Beijing in 2004. 

JD was one of the few Chinese internet titans to avoid a direct hit from the sweeping campaign to rein in Big Tech. In fact, it has benefited from the crackdown by adding new and returning brands like Starbucks and Estee Lauder to its platform, after antitrust watchdogs fined larger rival Alibaba Group Holding Ltd. for antitrust violations and forced it to revamp practices around merchant exclusivity.

But the company has been caught in a broader Chinese tech selloff and economic slowdown. JD’s market valuation has shrunk by nearly 45% from its peak last year to about $92 billion.

Liu will continue devoting his time to guiding the company’s long-term strategies while mentoring younger management, JD said in its statement. He will also contribute to the revitalization of rural China — a priority of Xi’s “common prosperity” agenda.