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Fall of Chinese entrepreneurs mirrors political problems

Jack Ma (Ma Yun), founder of China's leading electronic business platform Alibaba, described the relationship by saying that it is like "we are in love with the government, but won't get married."[Hong Kong company registration]

This complication tends to trap entrepreneurs in political debacles. They often bring jail terms upon themselves while causing the downfalls of government officials. Such political games often victimize entrepreneurs, who are in essence just profit-seekers.

Dalian Shide is an example. Its former president Xu Ming reappeared on August 22 during the trial of Bo Xilai, after being absent from public view for more than one year. Economy and Nation Weekly revealed on March 31 last year that the man "was taken into police custody on March 15 for his suspected involvement in business cases."

Prior to that, according to media reports, Xu's amicable relationship with the local government, something he was admired for, had brought his company successful bids on major projects, milestones in his effort to shape the Shide Empire.

His downfall significantly impacted [Set Up Company Hong Kong]Shide. His football club, Dalian Shide FC, formerly a top team in China's Super League, merged last year with another team from the same city Dalian Aerbin.

Meanwhile, the media claimed Shide's total debt reached almost 12 billion yuan (US$1.96 billion), in which "the majority was from financial equity loans."[Hong Kong Company Formation] Shide has yet to respond to the allegation and tell the public about its financial standing.

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