Danone behind tax probe, Zong claims

SHANGHAI: Wahaha chairman Zong Qinghou, who is being investigated for alleged tax evasion, was "set up" by French food and dairy giant Danone Groupe SA, the entrepreneur said this week.

Zong and the legal consultant of Wahaha's trade union said Danone, once a model joint venture partner of the Chinese beverage producer, tipped off authorities, which are now investigating Zong for possible tax evasion of up to 300 million yuan ($43 million).

Danone's move was linked to the yearlong dispute between the firms, Zong said.