SINO-FOREIGN joint ventures in Hubei province are suffering under a crackdown, and allegations have been made that a Hong Kong investor has cheated mainland partners.
Licences have been cancelled for 43 foreign joint ventures as part of a bid to curb what is seen as a growing problem of cheating.
Foreign investors in joint ventures are said to be falsifying accounts, overcharging for outdated fixed assets and changing the nature of businesses without approval.
The move underscores the seriousness of joint-venture abuses in China and the determination of the authorities to get tough on violators.
Among the Hubei enterprises whose licences were being revoked, it was learned that some had not engaged in any production or other business activities for three to five years after they had obtained their licences.
Some had not paid the funds they had contracted to supply contracts within the time limit, while some changed their locations without permission, according to Xinhua (the New China News Agency).
In addition, some companies said the reason they had not begun production was that investors had misread the market.
