The Shanbei Oil Dispute(1)

Although Yanchang Oil Group has yet to provide a clear response to the former investors of Shanbei Oil, which was government-appropriated under a cloud of disagreement over compensation, the past three months has seen all kinds of news worthy of their celebration. "The new Shanbei government has opened a door, and through the crack we can see light," says one investor involved in the dispute.

After four years of conflict, investors had abandoned their lawsuit against Shanbei's government over its claim for the wells. They were independently able to agree upon a fair compensation scheme, and Yu Lin city and Shaanxi province is coolly approaching the drawn-out conflict’s resolution.

The dispute, which exploded in June of 2003, involved 60,000 investors and become known as the first case involving protection of personal property in China. Some investors felt that compensation by the government was too low, which they say led to the bankruptcy and deep indebtedness of many.

On July 1, the Property Law formally went into effect. It is widely believed that the new law will have a huge impact on the final result of the dispute. "We've been waiting for this," says Tong Anrui, one investor representative.

Guo Haiyan Delivers a Letter 

Guo Haiyan, a professor at Capital Normal University, delivered information about the suit to Bao Yujun, one attendee of the double-congressional meeting this past March. That afternoon, during a discussion meant to cover other issues, Bao spoke out about the case. He then wrote his own report, which he sent to the National Reform and Development Commission and the Bureau of Land and Resources. The Shaanxi provincial government was then contacted, whereupon Yuan Chunqing, the governor, personally gave Yu Lin City's party secretary a call that Monday demanding that he address the issue of losses by the investors.

It's said that the Yu Lin City government has recently received three documents-- one from the Chinese People's Political Consultative Conference, one from the National Reform and Development Commission, and one from the Bureau of Land and Resources.

Guo Haiyan has been a long-time researcher of Marxism and is a member of Beijing's Propoganda Group. In 1969, at 19 years of age, he joined the production brigade in Yanan, in the north of Shaanxi. From this he developed what he calls "a deep connection" with Shaanxi. In November of 2004, Guo went to Yu Lin to investigate Shanbei Oil, after which he wrote letters to the Central Committee and the State Council, and began working with Zhu Jiu, an attorney representing the investors.