Globelink Founder Xu Jiadong Investigated for Embezzlement

Published: 12/29/2025
Cross-Border Tong Embezzlement Gearbest
Xu Jiadong, the former chairman of Cross-Border Tong, is under investigation for suspected embezzlement. The company's performance continues to decline, and rumors suggest its brand Gearbest will be sold to Pinduoduo. This once-giant of cross-border e-commerce faces multiple challenges. Its future direction and the sustainable development of the entire industry are attracting significant attention. The investigation and potential sale highlight the difficulties faced by Cross-Border Tong and raise questions about the stability of the sector.
Globelink Founder Xu Jiadong Investigated for Embezzlement

The once-thriving cross-border e-commerce industry faces turbulence as former CrossBorder CEO Xu Jiadong faces investigation for alleged misconduct during his tenure.

CrossBorder, previously known as Globalegrow, announced on December 3, 2023 that Xu Jiadong, who served as chairman and general manager until May 2021, is under investigation by the Wanbolin Branch of Taiyuan Public Security Bureau for suspected job-related crimes. The company stated Xu allegedly engaged in activities that harmed corporate interests during his leadership, though specific financial amounts and other involved parties remain under investigation.

The company's financial performance has deteriorated significantly, with first-half 2023 revenue plunging 35.88% year-over-year to 3.39 billion yuan ($476 million) and profits shrinking to 82.86 million yuan ($11.6 million).

From Industry Leader to Troubled Enterprise

CrossBorder's decline marks a dramatic reversal for what was once China's cross-border e-commerce pioneer. At its peak in 2018, subsidiary Global Easy Buy achieved 12.4 billion yuan ($1.74 billion) in revenue with 248 million yuan ($34.8 million) net profit. The parent company's market capitalization reached 38 billion yuan ($5.3 billion) during its heyday, with annual revenue hitting 21.5 billion yuan ($3 billion) and profits of 623 million yuan ($87.5 million).

The company's business empire previously rested on two pillars: Global Easy Buy and Patuoxun, operating well-known brands including Zaful and Gearbest. However, Zaful has since spun off as an independent operation, while industry rumors suggest Gearbest may be acquired by Pinduoduo - developments that highlight CrossBorder's operational and strategic challenges.

Industry Implications

CrossBorder's troubles serve as a cautionary tale for China's cross-border e-commerce sector following years of rapid expansion. The case raises questions about corporate governance and sustainable growth strategies in an industry that boomed during the global e-commerce acceleration but now faces increasing regulatory scrutiny and market saturation.

The investigation into former leadership adds further uncertainty to CrossBorder's future as it grapples with declining performance, executive scandals, and potential asset sales. Industry observers will closely monitor whether the company can stabilize operations and regain its competitive position.

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