China: Thousands of investors protest in Shandong over billion-yuan business cas


BBC Monitoring Asia Pacific

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Text of report by Hong Kong Information Centre for Human Rights and Democracy on 29 October

[Unattributed report: "A Few Thousand People Block Highway in Shandong's Jinan To Demonstrate, Paralysing Traffic"]

Our centre has learned that: The Shandong Jizheng Healthcare Products Company closed down recently, on 26 October triggering a blockade of Jinan's main north-south artery by a demonstration by a few thousand investors who lost all their hard-earned capital. Things have a tendency to expand because the case involves 300,000 people from whom funds were raised and the principal director of the company has gone missing and is said to have absconded to the United States with 2 billion yuan. Since China does not carry out political reform, various contradictions are building up in society and a nationwide demonstration similar to that of "4 June" 1989 will break out once there is a fuse.

Our centre has learned that Gong Yinwen, chairman of the company's board of directors, originally was a deputy district head of Central District in Shandong's Zaozhuang [City] and was on very good terms with an incumbent vice-chairman of the provincial committee of the Chinese People's Political Consultative Conference [CPPCC] in Shandong Province. The company's chairman frequently visited the homes of some retired high-ranking military officers of Shandong origin to have photos taken with them to show that he had a "solid background." By these methods the company raised 6 billion yuan from among the people to buy land to produce healthcare products. Several provincial leaders of Shandong Province were investigated by the Central Discipline Inspection Commission after the "Duan Yihe incident" there; consequently, the company suddenly closed down this month. On 26 October investors who rushed to Jinan from various places started blocking the highway with a sit-down protest along an overpass near Dikou Road and this main north-south artery of Jinan started to be paralysed. As an eyewitness told us, the highway blockade started at 10.00 a.m. and a few hundred public security personnel started dispersing the highway blockers by 4.00 p.m. Five people were wounded in the chaos and two taken away by the public security personnel. According to another person, who lives nearby, a sit-down had gone on from the 26th up till today [ 29 October] but only 100 people were taking part today, as many have gone home to wait for the outcome of the government's handling of the case.

Power struggle among the various factions was very fierce at the 17th Party Congress because power equals money in China. The healthcare products company developed for eight straight years without a problem under the protection of a certain vice-chairman of the CPPCC provincial committee and a former secretary of the provincial judicial, procuratorial, and public security committee until the "Duan Yihe case" triggered investigations on Shandong's provincial leaders. Grievances have universally piled up in the bosom of the Chinese populace; for instance, these 300,000 people from whom funds were raised definitely have great grievances against the government. Moreover, the common people have no way to vent their grievances, as they might get caught even if they wanted to do it only on the Internet; on the other hand, the Chinese media basically are "wise in retrospect" and dare to report only after something has gone wrong. Today's grievances among the people are extremely similar to those before "4 June" 1989 and a nationwide demonstration like what happened during that time will break out once there is a fuse.

Source: Information Centre for Human Rights and Democracy, Hong Kong, in Chinese 29 Oct 07