A grievous beginning for Sinuiju

The Korea Herald, Asia News Network, Seoul

The arrest of Yang Bin by the Chinese authorities signals a rough course ahead for North Korea's road test in the capitalist economy. The Chinese-born Dutch businessman who was sworn in last week to govern the Sinuiju Special Administrative Region has been under detention at an undisclosed location since he was taken away by police from his home in Shenyang early Friday morning. He is reportedly undergoing questioning about alleged tax evasion and illegal business activities.

This is a worrisome twist of events that even the most vocal skeptics about Kim Jong-il's dramatically ambitious plan for the border city and his choice for its chief executive had not expected. Beijing has been encouraging its last communist ally to open doors just as it has been doing over the past two decades. Pyongyang, in its desperate struggle for political and economic survival, appeared to be following the footsteps of its successful big brother.

Then, what has gone wrong between the two capitals? This was probably the first puzzling question at the bizarre news from the Chinese city where Yang's company has its headquarters. Is the tycoon just another high-profile target in China's pursuit of tax evaders? Or, is someone high up in Beijing displeased with North Korea's surprise announcement of a plan to build a foreign investment zone at its very doorstep and appoint an ethnic Chinese to head it -- without even a prior consultation?

Both Pyongyang and Beijing are silent about their positions China must have intended to express its irritation with the North's hasty moves to construct an international business center in the border area. It must be wary about possible negative influence on its own economic development in the neighboring provinces.

Also notable is skepticism about Yang's credibility, which raises suspicions about his appointment. Despite his reputation as "China's second wealthiest man" and his legendary rise from rags to riches, this 39-year-old "adopted son" of the North Korean leader has caused remarkable concern for his overly optimistic remarks and promises that failed to materialize. Doubts spread about his tax dodging, accounting irregularities and illegal use of land.

Yang's questionable abilities and blunders have been considered potential drawbacks for the project aiming to build a Hong Kong-style city-state within insular North Korea. In case he remains its governor, hopefully with allegations of unlawful business activities cleared, he would still face the daunting challenge of reestablishing the confidence of the international community.

It would be unwise to assess the predictably long and arduous project and its future consequences for peace and prosperity in the region on the basis of the ability of a certain individual.