Dispute Leaves U.S. Executive in Chinese Legal Netherworld - New York Times

Dispute Leaves U.S. Executive in Chinese Legal Netherworld - New York Times: "November 1, 2005

BEIJING, Oct. 31 - David Ji, a Chinese-American electronics entrepreneur, spent two months in custody enduring all-night interrogation sessions, but his stubbornness and occasional flashes of sarcasm infuriated his Chinese captors.

So in late December last year, according to a person who compiled a record of the encounter, guards emptied his pockets, removed his shoes and socks, and ripped the buttons off his oxford shirt. He was ushered disheveled and barefoot into the office of Zhao Yong, the chief executive of Sichuan Changhong Electric, Mr. Ji's onetime business partner and, more recently, his warden.

'Your only way out is to do what Changhong tells you to do,' Mr. Zhao told him. 'If I decide today I want you to die, you will be dead tomorrow.'

Mr. Ji soon agreed to cooperate with Changhong. But a year after the Chinese police apprehended him in his hotel room during a business trip, he remains in China as a pawn - Mr. Ji's colleagues say a hostage - in a commercial dispute that pits Changhong, China's largest television manufacturer, against Apex Digital, Mr. Ji's electronics trading company based in Los Angeles.

Changhong, which declined repeated requests for comment over several weeks, claims that Apex owes it $470 million. Apex, which recruited Changhong to supply Wal-Mart, Best Buy and Circuit City with inexpensive television sets and DVD players, says it owes less than $150 million. The sums involved are large, but what is more significant about the case is the way Changhong, a major state-owned company in Sichuan Province, deployed the police, prosecutors and judges in a campaign to collect its debt."