A United States court could order the seizure of BMW cars produced in China and exported to other countries if exiled entrepreneur Yang Rong wins his case against the Liaoning provincial government, a mediator appointed by Mr Yang warned yesterday.
Lang Xianping, a professor of finance at Hong Kong's Chinese University, said Mr Yang had asked him in June to serve as a mediator in the dispute over the ownership of China Brilliance, the car firm Mr Yang founded in Shenyang.
In August, Mr Yang filed a suit in Washington claiming compensation of US$690 million from the Liaoning government for assets he said it stole from him.
'Liaoning is very passive in this case. It does not want private negotiations but is relying on the central government to go through diplomatic channels,' Mr Lang said. 'But the central government is keeping a low profile. It wants the local government to deal with it. As a result, no one is dealing with it.'
He said the US District Court of Columbia had accepted the case and given the Liaoning government until November 2 to reply.
Under US law, Mr Yang would win the case because he had proof of being the original investor in the company, which was the key point in the case, Mr Lang said.