I was prompted to comment on the recent auction of Dawu Group after reading an article called "China’s economy facing ‘serious danger signs’ by Greg Robb published on April 18, 2022.
The reader is no doubt aware of the arrest and conviction of SUN Dawu on various charges. The situation resembles the treatment of ZHANG Dewu of Xiangda Group. However, do you know that Dawu Group has recently undergone a forced sale through auction and Xiangda Group was nationalized?
I remember an essay written by SUN Dawu perhaps four years before his arrest. It was really in response to several soliciations to purchase various subsidiaries of Dawu Group. The Group has about 28 subsidiaries. The buyers were willing to pay a substantial premium for assets in order to take public those companies. His response was that they were not for sale and that people came before profits. Dawu Group had almost 10,000 employees before its seizure. SUN Dawu was looking at the growth of the the Dawu Group over the next 100 years and not a fast profit over the next business quarter.
The Cases of Dawu and Dewu
The cases of SUN Dawu and ZHANG Dewu of Hebei Dawu Agriculture and Animal Husbandry Group Co., Ltd (Dawu Group) and Hubei Xiangda Agriculture and Animal Husbandry Group are remarkably similiar. They differ only in location with Dawu Group in Hebei Province and Xiangda Agriculture in Hubei Province. Both entrepreneurs and enterprises initially had trouble with local authorities in 2003 and 2002 respectively. They were taken to court and verdicts were rendered. The entrepreneurs and enterprises were taken to court again in the 2020-2021 period and severely punished.
Basically, the local governments claim that the offenders haven't learned anything in a seventeen-eighteen year period. They continue to "provoke trouble" which is a general catch phrase originally applied to the gay community in the 1990's and then extended to cover other areas including politics. In other words, their re-education and reform has been unsuccessful according to the government. They are repeat offenders who resemble the underworld community.
The result is that the offenders were sentenced to lengthy terms. Their enterprises were seized or effectively seized. Their wealth was confiscated in the name of donations to the government. All of this was done in violation of the constitution.
While China has one of the most beautifully written constitutions in the world it has become obvious it is now not worth the paper it is printed on. That awareness ironically weakens the government whose power rests on the constitution. It is a toothless tiger or one might say a "paper tiger" in the Year of the Tiger.
D. Carlton Rossi
February 03, 2022