With a $7.3 billion fortune and business operations spanning the globe, Richard Liu could have spent the last days of August anywhere in the world. The JD.com Inc. founder chose to spend his time taking classes in Minneapolis as a student at the University of Minnesota.
Why was one of China’s most successful and recognizable business figures hitting the books at all, much less so far from home in the Gopher State? That is part of the mystery surrounding Liu’s days in Minnesota, where he was arrested for alleged criminal sexual conduct as the long Labor Day weekend got underway. JD.com’s U.S.-traded shares fell 6.3 percent to $29.34 at 1:47 p.m. in New York.
Liu, 45, is a student in the university’s Carlson School of Management and was in Minneapolis to complete the American residency of a U.S.-China business administration doctorate program. The course takes place mainly in Beijing with a singular cohort of students: the average age is 50, and many are captains of industry. Co-led by Tsinghua University -- the alma mater of Chinese leaders including Xi Jinping -- its graduates include the executive manager of storied spirits-maker Kweichow Moutai and the head of fintech titan Ant Financial.
The Twin Cities program is one of scores that cater to a fast-rising Chinese demographic: senior executives. Unlike in the U.S., where luminaries such as Mark Zuckerberg and Bill Gates wear their college-dropout badges with pride, Chinese executives seek academic plaudits long after they cease to matter for their careers.
“If you have a better degree and better education you get more recognition,” said Wang Huiyao, founder of the Center for China and Globalization, a think-tank that advises the government. “China pays more attention to education.”
It’s not just about academic credentials. Many executives who grew up frustrated by overseas restrictions are indulging in travel freedoms. Others whose companies are exploring overseas markets hope to tap networks abroad and gain insight into their targets.
“For people like Richard Liu, it is not so much about knowing more people. It is surely for the purpose of widening his perspective, to learn new ideas, to get better understanding of the American society and market,” said Freeman Shen, an alumnus and Carlson board of overseers member who founded electric-vehicle startup WM Motor Technology Co.
Sri Zaheer, dean of the Carlson School of Management, said Liu’s course typically takes four years to complete. About halfway through, each cohort heads West for a summer residency in Minnesota where they work on applied dissertation ideas with mentors and meet the top executives of notable local companies. On the most recent visit, the faculty conducted classes on marketing and “developing critical thinking in a global context,” Zaheer said.
“They’re at a stage where they feel like they’ve maybe become successful before they’ve had a chance to actually think about why or how,” she said of the executives in the program. “They seem to want to reflect on their career. They’re also interested in taking their companies to become more global. And these are the kinds of things they feel like they haven’t quite gotten a handle on.”
But it’s not all work for the high-powered cohorts when they visit Minneapolis. An important part of the course involves giving Chinese executives a taste of America.