Chapter 70 Memorabilia of Tieben

In 1996, Dai Guofang registered and established Jiangsu Tieben Cast Steel Co., Ltd. with a registered capital of 2 million yuan. In May 2002, Dai Guofang proposed a plan to build a steel plant along the Yangtze River, with a total investment of about 1 billion yuan. In 2003, on the "China's 400 Richest List" launched by "New Fortune" magazine, Dai Guofang ranked 376th, with an estimated asset of 220 million yuan. In 2003, promoted by the Changzhou Municipal Government, the Tieben project was increased from more than 2 million tons to 8.4 million tons, with a project budget of 10.6 billion yuan.Dai Guofang proposed to "surpass Baosteel within 3 years and catch up with Posco within 5 years".

In February 2004, the Tieben project was reported to the Central Committee as an internal reference by a reporter from Xinhua News Agency due to "destruction of land and land occupation". On March 20, 2004, the nature of the "Tieben Incident" turned into illegal construction, and Changzhou City urgently issued a stop-work order. At the beginning of April 2004, nine ministries and commissions of the Central Committee formed a special inspection team to conduct a comprehensive inspection of Tieben. On the 19th, Dai Guofang and others were arrested "on suspicion of tax evasion, and the amount may be huge."

On April 28, 2004, the Tieben incident was characterized as "a typical major case of serious dereliction of duty and violation of regulations by local governments and relevant departments, and enterprises suspected of illegal crimes."The next day, Xinhua News Agency broadcast a draft to the whole country, listing the five major problems of Tieben. "People's Daily" published an editorial.Tieben became the "first case" of macro-control, and the project was completely dismantled. In March 2006, the Tieben case was heard in court, and Dai Guofang was charged with the crime of "falsely issuing tax deductible invoices".