P.M. BRIEFING : 5 Chinese Firms Fined $14 Million
China has fined CITIC, the company that has symbolized its economic reforms, and four other state firms more than $14 million for tax evasion and illegal business dealings, it was reported today.
Foreign diplomats said the move could mean that Communist Party hard-liners who have won a power struggle with reformers want to undermine these firms, some of them closely tied to the West.
The official New China News Agency said the fines, extremely large by Chinese standards, were the result of a 10-month investigation.
CITIC--the China International Trust & Investment Corp.--with operations ranging from trade and banking to weapons and satellites, was hit with the second-largest fine, totaling nearly $5 million.
The biggest--$5.2 million--was imposed on the Everbright Corp., a trading and investment company with extensive interests in Hong Kong.
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