Richard Liu will also spend more time mentoring younger management and contributing to the revitalisation of rural areas, JD said in a statement

China’s JD.com said on Monday founder and chief executive Richard Liu will switch his focus to the e-commerce giant’s long-term strategy, creating the new role of president to run the company’s day-to-day operations.

The move comes as several other founders of China’s tech companies have gradually relinquished the top roles, such as at Alibaba and Bytedance, although Liu will retain his title as chief executive and his board seat.

Xu Lei, currently CEO of JD’s biggest division, will take over the new role of president. Xu has taken on a more prominent public role at the company in recent years.

Liu will also spend more time mentoring younger management and contributing to the revitalisation of rural areas, JD said in a statement.

Looking to the future, the correct long-term strategic design, the growth and development of young talents, and the healthy and coordinated development of various business units will continue to be the driving force for JD, in doing the hardest and most challenging, but right and most valuable things for the industry, Liu said in the statement.

According to the company’s 2020 annual report, Liu owns nearly 80% of JD’s voting power, and some investors have previously raised concerns his tight control, coupled with the lack of an obvious successor, had posed a management risk.

Xin Lijun, who previously headed up JD Health, will take over from Xu as JD Retail’s chief while Jin Enlin will become JD Health’s new CEO.

Following Xu’s promotion, Liu will retain his board seat and position as CEO of JD.com, a company spokesperson confirmed.

Chinese authorities have also launched a wave of new industry regulations and penalties since late 2020, many of which have targeted the internet sector in particular.