China’s fraudulent developments
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One of the largest in the world, which has led to the growth of Mao Zedong’s popular hot water beyond the Coca-Cola tree, built for living in China.
The fall of Yuan Renguo, former chairman of Kweichow Moutai, chief founder of baijiu, it is a vivid reminder of the ongoing corruption of Xi Jinping. The law also outlines the risks to Chinese businesses as Xi plans to restructure the country’s business model.
Yuan left the company in 2018 after nearly two decades in charge. He was arrested the following year and was on Thursday sentenced by a court in the company’s home district of Guizhou, in southwestern China, on charges of bribery.
According to state media, Yuan, 64, abused his position for several years, receiving bribes of more than Rmb112m ($ 17.5m) through illegal distributions. The Guiyang Central Court has ruled that the fruits of Yuan’s bribe, including property, will be confiscated and handed over to the government.
The ruling marks the latest crackdown on the Hong Kong-based company, which has been embroiled in a crackdown on corruption.
In 2013, Moutai’s prices were reduced and shares fell when an anti-fraud leader encouraged excessive spending and gave gifts in Chinese business and politics. In the six years to 2018 the Central Commission for Discipline Inspection of the Communist Party examined 2m “tigers and flies” – high and low positions.
However, China’s unquenchable thirst for high-quality beverages and soy sauce notes, as well as the commercial interest of domestic companies, helped buoy Moutai in times of crisis.
The Yuan sanction was also a reminder of the brutality of the Chinese courts – by the hand of the ruling party.
The warning comes as China’s richest and most prominent Chinese leaders, including Alibaba founder Jack Ma, faced heavy pressure last year in the uprising.
In January, Lai Xiaomin, a former chief of China’s largest financial management company, has been sentenced to death after being convicted of fraud. The punishment came weeks later.
Judges are also at the forefront of Beijing’s coercive foreign policy, including violent negotiations, according to experts. Last month, Michael Spavor, a Canadian businessman who organized a cultural exchange in North Korea, was In prison for 11 years after being found guilty of illegal secrecy.
In the country Michael Kovrig, a former spy accused of spying, is facing a similar situation. The arrest of the pair since the end of 2018 and the closure trials this year are believed to have led directly to Canada where the arrest of Huawei boss Meng Wanzhou, who is forced to return to the United States.