Taiwan-funded company with ‘pyramid scheme’ suspicion a matter of business: Taiwan Affairs Office
Published: Dec 29, 2021 09:07 PM
File photo of Ma Xiaoguang, spokesperson for the Taiwan Affairs Office of the State Council. Photo:Xinhua

File photo of Ma Xiaoguang, spokesperson for the Taiwan Affairs Office of the State Council. Photo:Xinhua

The Lin Rui-yang case is a business-related matter and has nothing to do with relations across the Taiwan Straits, the Taiwan Affairs Office of the State Council said on Wednesday, after the Taiwan entrepreneur's company was reportedly under investigation for suspected pyramid selling.

Lin's company, Shanghai Dowell Trading Group (Dowell), is under investigation on suspicion of facilitating a pyramid scheme. The company mainly operates TIN' Secret, a cosmetic brand founded by Lin and his wife Chang Ting, a Taiwan actress featured in a TV drama popular in the Chinese mainland.

When asked about the issue, Taiwan Affairs Office spokesperson Ma Xiaoguang stressed that any trade and business in the Chinese mainland must comply with the laws and regulations.

Lin's case has been hyped by Taiwan media as a fallout after the mainland's punishment for Taiwan companies that have been supporting Taiwan secessionists but have made a fortune in the mainland in the same time.

"It is a purely commercial matter and has nothing to do with cross-Straits relations," Ma said on Wednesday. 

Media recently reported that the market regulation authority of Yuhua district in Shijiazhuang, capitalof North China's Hebei Province, has been investigating Dowell since June 5, 2021 after getting public reports. It established a special group of 17 experts and sent nearly 400 people for comprehensive investigations.

A staffer from the local market regulation authority told media recently that Dowell, the alleged pyramid scheme organization, was founded in 2013, involving a large number of people and huge amount of money. And the lack of precise information and the resistant attitude of its staff made the initial investigation challenging.

"According to investigations, the 'pyramid scheme' remains at an operational level. If further inquiry finds its behavior reaches a fraudulent level, we'll hand the case to the police," said the staffer.

The local market regulation administration has applied to the court for preservation measure given that Dowell has transferred and concealed the pyramid scheme funds through financial institutions, according to the announcement released by the administration last week.

Global Times