Hu credited with ending feud between Taiwan and mainland business partners
A high-profile business dispute between Taiwanese retail giant Shin Kong Mitsukoshi and its mainland partner Hualian Group has been settled after President Hu Jintao reportedly stepped in to call for a speedy resolution.
The row, which had been described by Taiwan's pro-independence green camp as an effort by Beijing to bully Taiwanese investors, ended yesterday with Hualian apologising for the incident, saying it was a result of a misunderstanding.
'Shin Kong Mitsukoshi has expressed regret over the differences in their management principles and styles, while Hualian has apologised over the incident, which it says was due to a misunderstanding,' Li Weiyi , a spokesman for the State Council's Taiwan Affairs Office (TAO), said in Beijing.
He was referring to a management dispute between Shin Kong and its mainland partner Hualian, which sent 200 security guards to 'take over' the Shin Kong Place joint venture late last month. The Taiwanese group invested NT$12 billion (HK$2.82 billion) in the Beijing shopping centre in April.
According to Taiwanese media, Hualian was unhappy with its partner's honest management style and forced all of the Taiwanese executives out, accusing them of taking bribes. On August 26, Steven Wu Shin-da, general manager of Shin Kong's operation in Beijing, was barred from leaving Beijing because of the allegation, the media said.
Mr Wu was finally allowed to return to Taiwan earlier this month as a result of mediation by the TAO, which was concerned about the investment image of the mainland.