released December 4, 2020

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Authorities ordered to ensure safety of asset and property rights. Cao Yin reports



Zhang Wenzhong (front), former chairman of retailer Wumei Holdings, stands in court during a retrial in May. At the conclusion, the court overturned Zhang's conviction. XU LIXIN/FOR CHINA DAILY


Zhao Shoushuai's New Year's resolution is to rebuild his farm machinery business and restore his reputation in the community.
Last year, the 49-year-old businessman from Gansu province cleared his name, having spent more than a decade in prison and detention as the result of a flawed conviction.
"When I heard that the central leadership was determined to protect the legal and personal property rights of imprisoned entrepreneurs, I felt the sun had come out," he said. "I believe I'll have a bright future in the country's improved legal and business environment."
Under Chinese law, both individuals and companies can be charged with offences such as fraud or illegal business activity. Convicted companies are closed and selected assets and property are seized to compensate the victims.
However, according to Jiang Ping, professor of law at the China University of Political Science and Law in Beijing, judicial authorities often fail to distinguish clearly between legitimate assets, which should not be confiscated, and an entrepreneur or company's personal and/or illicitly gained assets, which can be seized in the event of wrongdoing.
Confiscation
In 1999, Zhao was arrested and detained on a charge of contract fraud. In 2002, he and his farm machinery company were convicted at Xinxiang Intermediate People's Court, Henan province.
Zhao was sentenced to 16 years in prison, and his assets, including property, were confiscated.
However, on July 24, after a retrial at the same court both convictions were quashed as a result of insufficient evidence and violations of legal procedures at the original hearing.
Following that, Zhao applied to the court for State compensation of about 2 billion yuan ($295 million).
In an exclusive interview, Zhao told China Daily that he had asked for the large amount not only as recompense for his wrongful detention, but also to restore his company's operations and reputation.
"As an entrepreneur, my business means everything to me," he said.


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