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Article: Hong Kong Worries if Free Business Will Survive Chinese Control.(Originated from Detroit Free Press)
- Article from:
- Knight Ridder/Tribune Business News
- Article date:
- January 9, 1997
- Author:
CopyrightCOPYRIGHT 1997 Knight-Ridder/Tribune Business News. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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HONG KONG--Jan. 9--In June 1993, the official Chinese media reported that a private Beijing company, Great Wall Machinery and Electronics Scientific and Technological Co., was unable to redeem the bonds of some 200,000 small-time lenders.
The failure of Great Wall Machinery naturally disappointed investors and lenders. But it also embarrassed Chinese government leaders, who had publicly praised Great Wall Machinery as a worthy example of entrepreneurship.
The government's response: Shen Taifu, head of the company, was accused of embezzlement and fraud. In April 1994, Shen was executed by firing squad; his wife was sentenced to 15 years in ...