Chinese regulators have frozen assets totaling nearly $100 million belonging to a cosmetics and skin care firm founded by Taiwanese actors due to allegations of a pyramid scheme.
The market regulator in Hebei province’s capital, Shijiazhuang, said it had received several reports of a suspected pyramid scheme involving Shanghai Dowell Trading, according to a letter circulated on Chinese social media platforms.
600 million yuan ($94 million) of assets were frozen due to an investigation which the regulator said involves the «use of financial institutions to transfer or conceal funds involved in pyramid schemes».
Shanghai Dowell Trading
Shanghai Dowell Trading was founded in 19996 and is the main operator of cosmetics and skin care products brand TST Tin’Secret.
It was founded by married Taiwanese actors Zhang Ting and Lin Ruiyang.
«We are very grateful to the Administration for Market Regulation of Shijiazhuang Yuhua District for guiding our company to check the risk; at present, the company is operating normally,» Shanghai Dowell Trading said in a statement on social media. «Our company will actively cooperate with relevant departments.»
Cross-Strait Relations
Tensions between China and Taiwan are rising with Beijing increasingly vocal about its ambitions for unification while Taipei has also stepped up its resistance efforts after President Tsai Ing-wen rejected the «one country, two systems» framework in October 2019, citing unrest in Hong Kong as the main consideration.
Nonetheless, Beijing noted that the asset freeze has nothing to do with cross-strait relations.
«I want to emphasize that anyone running or starting a business in the mainland must first and foremost follow the law and regulations,» said a spokesperson from the Taiwan Affairs Office which sits within China’s State Council.
