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'Original sin' debate rages on

By Chen Weihua (China Daily)
Updated: 2007-03-22 09:02


Vanke Chairman Wang Shi

Vanke Chairman Wang Shi claims to be one of the few private entrepreneurs who can be honest about how they started their businesses in the 1980s.

The words by Wang, a respected businessman and mountaineer, in the talk show - Meet the Boss - on Shanghai TV over the weekend again touched a nerve with many business people over the prolonged debate on the "original sin".

Though the definition of "original sin" varies, it usually refers to unlawful business practices from which today's Chinese entrepreneurs are said to have risen to their wealth.

There have been calls to forgive the "original sin", citing the entrepreneurs' contribution to the nation's economic development.

From a wholly State-owned economy before the late 1970s, private businesses now number more than 4.9 million and provide half of the nation's gross domestic product.

But the arrest of a number of high-profile entrepreneurs has called the business practice of the group into serious question, causing a flutter in the business world.

Last Friday, Wu Ying, China's sixth-wealthiest woman on Hurun's Rich List, was formally arrested in Dongyang, Zhejiang Province, for alleged illegal fundraising.

Related readings:
 Entrepreneurs' 'original sin' unfounded

In October, Zhang Rongkun, another Rich List star, was detained for alleged bribery and embezzlement in Shanghai's pension fund scandal. In December, oil mogul Gong Jialong was detained by police in Hubei Province for "economic crime".

These are just a few of the many entrepreneurs now doing time.

It's true that the widening income gap has sparked increased resentment toward rich people. But it has been an open secret that many of today's successful entrepreneurs accumulated their wealth by smuggling, evading taxes, polluting the environment and bribing officials to land lucrative business deals - the consequences of which are being borne by the general public.

A crusade against private entrepreneurs would not be a good idea. But pardoning serious offenders would send a wrong signal.

"Original sin" should be dealt with, whether it was committed by a private, foreign or State-owned enterprise.


(For more biz stories, please visit Industry Updates)



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