Yang’s rise to power little noted back home

BEIJING -- The spectacular rise to political fame by Yang Bin has drawn a largely subdued response in the country of his birth. Beijing’s reaction so far, at least in public, has been diplomatic but curt, and the official Chinese media have all but left the businessman’s name out of the brief reports about the project designed to remake Sinuiju, North Korea, into an international city.

Mr. Yang’s rise to prominence in the North has coincided with the growing power of a high Pyeongyang official. Kim Yong-sul, as chairman of the Committee for the Promotion of Economic Cooperation, is North Korea’s point man on economic diplomacy. He has led the committee since 1998, following a series of stints at the state industrial agency and the Ministry of Foreign Trade as a key figure in handling joint venture projects with foreign businesses.

Mr. Kim said during an unofficial visit to Japan earlier this month that the North “would soon have comprehensive trading companies,” in effect hinting at the Sinuiju project and his deep involvement in it. He also represented Pyeongyang on Monday when Mr. Yang signed the deal to develop and operate the Sinuiju district. A source in China close to the Sinuiju project told the JoongAng Ilbo on Thursday that Mr. Kim would head the liaison between Pyeongyang and Sinuiju.

In China, where Mr. Yang has conducted most of his business in recent years, the Chinese-Dutch entrepreneur appears to be a nonissue. A Foreign Ministry spokesman in Beijing, responding to questions at a press briefing Tuesday, said, “We don’t know much about him.” A source here said Mr. Yang may already be on “Beijing’s black list” for his possible involvement in tax evasion and other business irregularities.

Chinese media have been distinctly negative about Mr. Yang in their reporting since July, when uncertainties about his whereabouts were first raised. The reports have focused mostly on his business dealings, including alleged improprieties he may have committed and possible liquidity problems at the companies he runs.

But most observers here said the media reports should not be construed as signs of unhappiness in Beijing with the Sinuiju project. “China fundamentally agrees with North Korea opening up,” a diplomatic source here said, “and I understand the authorities here are welcoming the Sinuiju project.”

Beijing’s blase reaction to the news of Mr. Yang’s involvement is more likely an indication that China is waiting for more specific information about the project before it takes a stance, the source said.

by Yoo Kwang-jong