http://www.chinastudygroup.org/index.php?type=news&id=4494

(still peanuts compared to the 200,000 pan-ops working just in Securitas (which
ate up Pinkerton and Burns in 1999-2000)

(also - note Shenyang is the Flint Michigan of China, see:
http://www.chinastudygroup.org/index.php?type=article&id=45
for more)

In China, private eyes spy from legal twilight zones
 Knight Ridder | 23 jan
 by Tim Johnson

SHENYANG, China - Out of China's chaotic race to capitalism, an army of private
detectives has emerged to find abundant work tracing bogus goods, tailing
swindlers and capturing philandering spouses on videotape.

By some estimates, 700 to 1,000 small investigations companies now ply their
trade, employing tens of thousands of paid informants, stalkers, disguise
artists, cameramen and part-time snoops.

Like much business in China, the industry exists in a legal twilight zone.
Banned by the central government in 1993, private detective agencies became
semi-legal again after a 2002 court ruling. Even so, there's no central
registry, no federal licensing and only fuzzy legal interpretation about how
gumshoes may operate.

"My understanding is that anything that is not specifically banned is legal,"
said Kang Yongchun, the deputy director of the Kedun Detective Office
(www.kedun-detective.com) in Shenyang, an industrial city about 400 miles
northeast of Beijing.

Detective agencies in China do little advertising, preferring to maintain a low
profile. But they were thrust into the spotlight after the brutal beating death
of a detective Dec. 13 in Beijing.

A disgruntled vendor had hired the 39-year-old detective, Huang Lirong, to
snoop on the owner of an herbal medicine shop. Huang's body was dumped in front
of Beijing Hospital hours after the medicine shop owner spotted him and
confronted him, the China Daily newspaper reported.

Looking philosophical, and exuding the confidence of a lengthy career in law
enforcement, Meng Guanggang, the owner of the Kedun Detective Office,
said: "Private detectives are people who walk on the edge. You try to
accomplish your goal by all means. If you think it's right, and within the law,
then go ahead and do it."

In China's rough-and-tumble environment, business owners often view signed
contracts as less than ironclad agreements. Swindles are common. Debts mount.
Police rarely delve into such disputes.

"If you've been cheated by a swindler, you can report the case to the police.
But you have to produce evidence. You have to tell the police where the guy is,
where the company is," Meng said.

While Meng is low-key, other detectives take their cues from popular fiction
and B-list movies, employing a practiced bluster to sell their skills.

"I'm a rare talent. They can't find a talent like me," Wei Wujun, perhaps
China's most widely publicized private detective, announced to a reporter.

Like many detectives, Wei, who operates from Shanghai and the southwestern city
of Chengdu, spends a lot of time, video camera in hand, tailing men who cheat
on their wives.

"We stay in the next room and record everything," Wei said as he slapped a
videocassette in a VCR to show some footage. "See? The lens is not directed at
the bed. We just want to prove that they did that. We try to protect their
dignity and privacy."

Under new Chinese law, wronged wives may receive assets from their unfaithful
husbands if they prove infidelity. Courts now accept videotaped evidence as
such proof.

Laws prohibit private investigators from carrying guns or recovering private
debts, but Wei, like others, finds ways to help clients, even mounting "sting"
operations.

Wei said a software company summoned him when it discovered an employee
pilfering software source code and selling it on the sly.

"We set up a trap. I went in with a guy who is a close friend of that staff
member, and acted as a potential buyer," Wei said, asserting that he solved the
case.

When some 150 private detectives, lawyers and other experts gathered in late
December in Hangzhou to discuss the outlook for private investigations, much of
the talk centered on "competitive intelligence," such as tracing counterfeit
goods and identifying thefts of industrial know-how.

"In China, they are able to manufacture everything from pins to airplanes. They
can counterfeit anything," said Ponnosamy Kalastree, the regional executive
director for the Council of International Investigators, an industry group
based in Seattle.

So the market is booming for investigators to check into purloined
manufacturing technology. They also profile potential business partners for
clients, probe shipping fraud and track down "vanished" business partners.

"China is a big country. It is a heaven for people to disappear," said
Kalastree, who heads a security firm in Singapore. "Their technology is still
not very advanced for tracing missing persons."

U.S. and European security consulting companies are present in China but they
largely stick to insurance fraud and safeguarding foreign products from
counterfeiting.

"Most of the work we do is brand protection," said Ewen Turner, the Shanghai-
based managing director for northern China for Pinkerton Consulting and
Investigations, the 154-year-old security firm headquartered in New York.

Turner said private investigation in China "is still very much a fledgling
industry" and local private eyes run the gamut "from legitimate firms to one-
man offices to professional informants who go around city-to-city sniffing
around markets."

"There are people whose sole purpose is to go follow trucks around," he said.

Since business success in China depends on personal networks - knowing
influential people - private investigators often come from backgrounds in
government. They rely on senior officials to help them in their work.

Wei, the Shanghai-based detective, spent 13 years as an instructor in the
People's Liberation Army, and boasts that government officials moonlight on his
staff of "several dozen" investigators.

"I can exert pressure on local officials," Wei said.

Meng said his firm had helped crack corruption cases.

At his office in Shenyang, former beat cops loitered, some still in uniform.
About a third of the staff members are former police officers, Meng said.

A bulletin board of press clippings attests that Meng's firm attracts media
attention. Many other private investigators prefer to keep the profession in
the shadows, fearful that powerful officials will turn on them.

When investigators trace shady business dealings in China, Kalastree said, the
clues sometimes lead to government offices. "The people involved in the
business may be government officials themselves. They (private investigators)
do not want to step on any toes."




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