999 Pharmaceutical Expands In The USA

A Chinese traditional medicines company known as 999 Pharmaceutical is expanding in the USA. It claims to be the biggest company of its kind in mainland China, but the firm has drawn attention to itself in the west more because it was created by the People's Liberation Army and is seeking a Big Board listing, than because of the nature of its business.

Critics in the west are surprised and angered by the military link, particularly relating to the role of the military in dealing with dissenters to the regime in China, and its role in selling arms to countries that the west considers to be some of the world's most belligerent, comments the Wall Street Journal.

The company insists that it is distancing itself from its military connections and it is reported that, in February, 999 raised foreign capital through the sale of 60% of its stock. An Asian affiliate of Citicorp has acquired a 2.49% stake in the company, and 25% of 999 is owned by two US investment companies, Paloma Partners and Tudor Investments Group of New York, reports the WSJ.