China’s wooing of private enterprise may let billionaire Huang Guangyu challenge 2010 business conviction
- Former Gome chief may have day in court as China eases up on private business
- Prosecutors advised to be prudent when applying criminal law to entrepreneurs
Jailed Chinese billionaire Huang Guangyu could have a better chance of overturning his conviction for “running an illegal business operation” as Beijing pledges to protect the private sector and the country’s top prosecutor calls for more prudent use of criminal law, observers said.
Huang, former chairman of retail chain Gome Electrical Appliances, was jailed for eight years in 2010 for transferring 800 million yuan (US$115.3 million) to underground private banks in 2007 for them to convert to Hong Kong dollars to pay gambling debts.
He was also convicted of insider trading and corporate bribery, earning 14 years in total behind bars.
But his conviction for running an illegal business was particularly controversial.
Ruan Qilin, a law professor at China University of Political Science and Law, told China Business Journal that Huang’s money transfer amounted to illegal foreign currency trading because it was not done to make a profit.
“Huang’s action violated an administrative law of illegally buying currencies, but it is not a criminal act,” he was quoted as saying.