The "Dezhou Logic" of Kaiyuan Thermal Power's Shutdown: Government-Ordered Shutdown Not Considered Forced, Private Enterprise's Cooperation Considered "Voluntary"

The phrase "listen to the government and get beaten" has come true for a private enterprise in Shandong Province. Kaiyuan Thermal Power Company, a private heating company in Dezhou, Shandong Province, was initially exempt from shutdown due to its "irreplaceable civilian heat source" status. However, it was later suddenly shut down by the government. After the shutdown, the company's heating network and other assets were transferred to a state-owned company free of charge, without proper compensation. The company has taken legal action against the Dezhou Economic and Technological Development Zone Management Committee, which ordered the shutdown. The court's ruling that the company's shutdown was "voluntary" has sparked controversy and raised questions about the protection of private enterprises' rights.

In 2011, Shandong private entrepreneur Feng Chengqiang invested heavily in the restructuring and acquisition of the loss-making state-owned enterprise Dezhou Kaiyuan Thermal Power Co., Ltd. After the acquisition, Feng's company continued to invest hundreds of millions of yuan to upgrade equipment and technology. However, due to the local government's failure to fulfill its promise of "direct power supply and direct heat supply," Kaiyuan Thermal Power Company suffered consecutive years of losses. In 2019, the Shandong Provincial Government issued a document requiring the shutdown of coal-fired power units below 300,000 kilowatts that were not the only heat source in their area. Kaiyuan Thermal Power Company was initially exempt from the shutdown due to its status as the only heat source in the area. However, in October 2019, the company was suddenly included in the first batch of shutdown plans, with a planned shutdown time of December

1. In May 2021, the Dezhou Economic and Technological Development Zone Management Committee issued a notice to shut down the company. The shutdown was carried out in December 2021, despite the lack of a complete heating replacement plan, unclear asset disposal, and unresolved personnel placement and compensation standards. The company has claimed that its heating network and other assets were forcibly transferred to a state-owned company, which has been using them for free ever since.

The Dezhou Economic and Technological Development Zone Management Committee has argued that the company's shutdown was "voluntary" and that there was no forced shutdown. The committee has also claimed that the company's assets were not transferred to the state-owned company without compensation. The case has sparked controversy and raised questions about the protection of private enterprises' rights. The company has taken legal action against the Dezhou Economic and Technological Development Zone Management Committee, seeking compensation for its losses. The court's ruling that the company's shutdown was "voluntary" has been met with skepticism, and the case is currently under appeal.

In an interview, Feng Chengqiang expressed his frustration, saying that the real obstacle to his company's development was not funding or market issues, but the "shutdown fake" event orchestrated by the government, which caused the company to miss its development opportunities. The company's shutdown has also led to a series of debt lawsuits, and Feng has gone from being a successful private entrepreneur to being known as a "deadbeat." The case has raised questions about the protection of private enterprises' rights and the role of the government in supporting their development.

The Dezhou Economic and Technological Development Zone Management Committee's compensation decision has been met with controversy, with the company arguing that the compensation amount is too low. The company has claimed that its assets were worth around 450 million yuan, while the committee's compensation decision was only around 173 million yuan. The case is currently under appeal, and the company is seeking fair compensation for its losses. The case has sparked controversy and raised questions about the protection of private enterprises' rights. The company's shutdown has also led to a series of debt lawsuits, and the company is seeking fair compensation for its losses.

The court's ruling that the company's shutdown was "voluntary" has been met with skepticism, and the case is currently under appeal. The company has argued that the shutdown was forced, and that the government's actions were illegal. The case has raised questions about the protection of private enterprises' rights and the role of the government in supporting their development. In a statement, the Dezhou Economic and Technological Development Zone Management Committee said that the company's shutdown was "voluntary" and that there was no forced shutdown. However, the company has argued that the shutdown was forced, and that the government's actions were illegal. The case is currently under appeal, and the company is seeking fair compensation for its losses.

The case has sparked controversy and raised questions about the protection of private enterprises' rights. The company's shutdown has also led to a series of debt lawsuits, and the company is seeking fair compensation for its losses. The Dezhou Economic and Technological Development Zone Management Committee's compensation decision has been met with controversy, with the company arguing that the compensation amount is too low. The case is currently under appeal, and the company is seeking fair compensation for its losses.