The China Xinyue Dongli Technology Development Company, an agent of Beijing Netcom's Internet data center business, has been sealed by local police for poor operations and the company's boss Bai Xinwen has also been arrested.

CXDTDC reportedly originated from Zhong Suo Company which was set up in late 2002. In November 2007, Bai renamed the company CXDTDC. Relevant data shows that CXDTDC is located at 7F, Guangkong Office Building, 16 Hongda North Road, Beijing Economic and Technical Development Zone.

According to local media, a client from CXDTDC says when he went to CXDTDC on May 14, he found that the office was already empty with two employees complaining about unpaid wages. In mid-May, many other clients began to notice that the network of CXDTDC could not work and the company's phone was unanswered.

Police say that CXDTDC was sealed in mid-May because it could not manage to pay its employees. Bai was detained by the police on April 30, but the reason for the arrest has not been disclosed.

Beijing Netcom says only users who signed contracts with CXDTDC or Bai can enter the IDC to maintain their servers, though they are not allowed to move their servers out. Beijing Netcom does not allow clients who signed with Zhong Suo Company to access the IDC because it says it signed with CXDTDC, not Zhong Suo Company. This surely is very confusing to the customers.

At present, China Netcom sells IDC services through two channels of direct selling and distributing. According to Wang Yan, sales manager of Beijing Netcom's Yizhuang IDC, Beijing Netcom usually only signs with first-class agents, and don't care how they develop the lower class agents. So far, there is no comment from Beijing Netcom.