Local management body accused of abuse of power

The provincial government of Northeast China's Heilongjiang Province has launched an investigation following a claim about the local business environment, an official with the Heilongjiang News Press Office surnamed Wei told the Global Times on Tuesday.

Mao Zhenhua, chairman of Heilongjiang Yabuli Sun Mountain Resort and founder of China Chengxin Credit Rating Group, said that he has invested more than 2 billion yuan ($308 million) in Yabuli Sun Mountain Resort, but the Yabuli Ski Resort Management Committee has abused its power to impede the company's development. The claim was made in a video posted by Jiang Guangce, chairman of Tibet Dechuan Investment Management Co, on his Sina Weibo account on Tuesday.

The Yabuli Ski Resort Management Committee was set up in May 2014 after being approved by the Heilongjiang provincial government, domestic news site ifeng.com reported on Tuesday.

Mao said the committee had illegally occupied 230,000 square meters of land that belongs to Mao's company.

"Mao's Sun Mountain Resort has long been the most popular tourist spot in Yabuli. I haven't seen the video yet," an intern who refused to be identified from Heilongjiang Yabuli Tourism Resort told the Global Times on Tuesday.

Mao and Heilongjiang Yabuli Sun Mountain resort could not be reached by the Global Times as of press time.

"Mao's issue is just a special case. The investment climate has been improved greatly in recent years and the government has done a lot about this issue," said Liang Qidong, vice president of the Liaoning Academy of Social Sciences, while admitting that there is "still a long way to go."

Pan Shiyi, chairman of real estate developer SOHO China, on Tuesday commented on the issue on Weibo, saying "a transparent business environment is necessary for businesses to grow in Northeast China."

"The saying 'never invest beyond Shanhaiguan,' which means it's unwise to invest in Northeast China, has long been heard among investors. I hope through government efforts this curse will disappear soon, since we have rich resources for investors," Liang said.

Also on Tuesday, China's Supreme People's Court issued a document stressing that the validity of contracts signed between the government and enterprises must be properly recognized.

If the government breaks the contract only because of a transition in the government or replacement of the senior officials, reasonable demands by the enterprises should be met, and if enterprises' property is taken for public use, compensation should be offered, the document said.