Foreign Ministry spokesman Liu Jianchao confirmed Thursday that the 39-year-old Dutch-Chinese tycoon, chosen by the Democratic People's Republic of Korea (DPRK) to run a special economic zone, was arrested in the northeastern city of Shenyang on Wednesday.

"He is suspected of criminal activities including running investment scams, using fraudulent contracts, illegally occupying farmland and offering bribes. Therefore he was arrested by the Shenyang public security department on November 27 in accordance with the law," said Liu.

Yang moved to the Netherlands in the 1980s but later returned to China, prospering as chairman of the board of directors and legal representative of the Shenyang Euro-Asia Group. He was named the second-richest man in China by Forbes magazine last year.

Yang was placed under house arrest in Shenyang in early October, shortly after the DPRK announced he would head its Sinuiju Special Autonomous Region.

"In light of the fact that he had a Dutch passport when entering China, according to international practice China has already reported this arrest to the Dutch embassy," Liu added.

Also at Thursday's regular briefing, Liu talked about the United Nations' weapons inspections in Iraq.

"As a requirement of the United Nations (UN), the Chinese side has indicated its willingness to send experts to Iraq for the weapons inspections," Liu said, adding that the two sides are negotiating on the specific arrangements.

China was pleased to see UN weapons inspectors successfully complete their first day of work at suspect sites in Iraq on Wednesday, Liu said.

"We hope that the UN weapons inspectors can continue to carry out their work effectively and smoothly. It is also our hope that the relevant parties will earnestly implement relevant UN Security Council resolutions on Iraq," Liu said.

Iraq has denied having any weapons of mass destruction and agreed to allow weapons inspectors back into the country after a four-year break.

(China Daily November 29, 2002)