“Top 10 Most Likely Charges” Used by Chinese Government to Against Entrepreneurs

If you have a business in China, then you must be very careful not to be put in prison. A recent media report summarizes “ten most likely crimes” of Chinese entrepreneurs. This shows what a complex legal environment they have to face.

Hence comments that, for all Chinese business owners, they are either in prison or on their way there.
The quiet execution of Hunan private entrepreneur Zeng Chengjie, has shocked China’s whole business circle.

Three months after being arrested, Zeng’s company assets were forcibly seized by the Chinese Communist Party (CCP). Zeng’s company was finally appraised at a value of 330 million, greatly reduced from the previous value of 2.38 billion. Then it was sold to an affiliated state-owned company of Hunan provincial government at the deflated price. However, the key assets evaluation report has never been open to the public.

President of Jingheng Lawyer Group, Chen Youxi told media that, following the logic of the CCP current legal system and its charges, every Chinese entrepreneur is guilty. If your business is 5 to 10 years old, they can easily sentence you to death by cooking up at least five charges against you. All your assets can be removed in minutes if public security, courts and judicial systems work together to do that.

Recently, some media summarized a “top ten list of charges” against Chinese entrepreneurs.

They are: falsely reporting registered capital.

Second, false capital contribution.

Third, surreptitiously withdrawing contributed capital.

Fourth, rebating and selling government-owned property at a lower price.

Fifth, unauthorized partition of state property.

Sixth, fraudulent fund raising.

Seventh, illegally absorbing public savings.

Eighth, relenting at high interest rates.

Ninth, false bankruptcy.

Tenth, illegal business operation.

Fu Yonggang, Shandong lawyer: ”The problem lies in the whole regime, or the environment. If completely following China’s law, it would be impossible for any company to prosper. In a word, it is very difficult to develop into a big or promising business only through legal operations.”

A comment from economists says that, in China any economic issue is also a political issue.

Sun Dawu, Supervisor Board Chairman of Dawu Group: ”Without doubt, many people have no sense of security. This is quite normal not only in business circles.

Every field or industry has the same uncertainty about their future; the rules of our current law system show no justice.”

In 2003, Sun Dawu was arrested by the CCP for “illegal fund raising”. They claimed that Sun had illegally collected 180 million Yuan from over 3000 households in the country.

Sun Dawu: ”At that time I was sentenced to three year imprisonment with a reprieve. After that in the fourth year I was no longer able to be business representative or board chairman.”

After being released, Sun Dawu worried that his young son might also be subject to fabricated charges and so became unwilling for him to succeed as the company owner.

Finally Sun decided to follow the Three Departments and Six Ministries system of Dynasty Sui, and the Constitutional Monarchy of the British government. He created a constitutional system of “separation of powers” for his private company.

Sun Dawu: ”My son still cannot operate the whole business. So then I created such a system. In that system we run democratic elections for board chairman and executive manager.”

Sun’s “Constitutionalism of private company operation” is democracy in election, supervision, decisions, management. His “separation of powers” refers to Board of Management, Director and Supervisor. The three boards have powers in management, decisions and proprietorship, respectively.

To survive in China, entrepreneurs have to find their own ways. Sun Dawu believes democracy allows both sponsors and workers to speak for themselves. It is a regime of republicanism between labor and capital, as well as the embodiment of a value system.

Sun Dawu’s assistant: ”Then we had to solve many problems. Such a system may limit growth of our company, but it also ensures its stability. As commented by many media reports, Sun Dawu is not running a company. His idea is to run a social system in the form of business.”

A Chinese media report also comments that, all Chinese business owners are on their way into prison. According to their “ten most likely crimes” list.

Chinese netizens show strong consent with the report, saying that over 90% private company owners have had those crimes on their shoulder since the very first day of their business. Entrepreneurs are simply offering themselves to the CCP.

You will be either put into prison or deprived of all assets whenever one they wish to do.

– Source: NTDTV