Posted on 10/03/2002 8:41:22 PM PDT by HAL9000
SHENYANG, Oct. 4, Kyodo -Chinese authorities arrested Yang Bin, the newly appointed Dutch-Chinese governor of a new special economic zone in North Korea on Friday morning, South Korea's Yonhap News Agency reported, quoting a Chinese official.
Although the reasons for his arrest have yet to be announced, diplomatic sources in Beijing said the arrest is related to tax evasion, stock speculation and illegal real estate development, Yonhap reported.
Yang was arrested at 5 a.m. in Shenyang, northeastern China, immediately before departing for North Korea, Yonhap said in the report from the Chinese capital.
One of China's richest tycoons, Yang was officially named chief executive of the Sinuiju Special Administrative Region by Pyongyang last month.
Yonhap quoted the diplomatic sources as saying that Chinese authorities Thursday ordered those who are in charge of exits from China to stop Yang's departure for Sinuiju.
He was reportedly ordered by tax authorities in Shenyang to pay back taxes on real estate.
Yang, who holds Dutch citizenship, had been expected to turn Sinuiju, an impoverished city near China's northern Liaoning Province, into a Hong Kong-styled capitalist enclave.
He is also chairman and executive director of the Hong Kong-listed Euro-Asia Agricultural (Holdings) Co., a Shenyang-based Chinese orchid grower and exporter.
In 2001, Forbes magazine ranked Yang as the second richest man in China, with an estimated 7.5 billion yuan (about $906 million) in personal assets.
An intriguing possibility has been suggested by a Korean newspaper. It says that there could be a power struggle under way in China between the young generation headed by Hu Jing-Tao and the old guards headed by Jiang Zemin. So far Jiang's group has no legitimate excuse to continue to hold onto power because Chinese law specifies that nobody over 70 can be appointed to top positions. Jiang himself is 76 years old.
Now we have this Yang Bin fellow who is connected to many shady business dealings in China. On top of that, he is now helping N. Korea to play China off Russia, complicating Chinese efforts to develop the depressed N. East China by diverting foreign investment to N. Korea. China rather wants N. Korean special economic area to be near DMZ, the southern part of N.Korea. This way the development of such zone does not compete with Chinese N. East development. This also complicates geopolitical situations of China. China prefered the current format of both Koreas and USA and China as major players in Korean peninsula. Now N. Korea appears to drag in Russia and Japan as additional players. China does not like that. Finally, N. Korea did not clear with China about their new plan to develop this new economic zone. China feels it is losing control on N. Korea.
Yang Bin has also connections to many princelings and Hu Jing-Tao. So it is my opinion that the above mentioned threats to Chinese interests and Yang Bin's connection to shady dealings can be used to attack these younger generation leaders impatiently waiting in the wing. This way old generation can eliminate these young challengers and continue to rule.
It will remain to be seen if this will turn out to be true. But the highly public and provocative way China is handling Yang Bin case runs counter to supporting Chinese position of pushing N. Korea into some kind of economic reform ASAP. There is something which is worth a great deal more to Chinese leadership than economic reform of N. Korea.
As a whole, you better believe it. I could not tell you for 100% that Yang Bin is in on crooked stuff, but when in doubt make something up, thats the CCP motto.
His arrest has probably MUCH more to do with the above political situation than any real crime of any seriousness.
You are on, about the development stuff, as well as the part about competition, and losing control of N. Korea.
China is very worried about losing influence. They see Japan, as well as the US going in nose to nose with N. Korea and talking about developing the place. If N. Korea 'switches' sides, and starts being overly influenced by the US and Japan, China will see it as even MORE threatening. China will see the next generation of N. Koreans going where the money is, and that is the US.
N. Korea will possibly turn into an economic competitor with China. Some of the big dawgs in China don't like that.
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