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23/05/2014

Businessman linked to China’s ex-security tsar sentenced to death | Reuters

A former mining magnate with suspected ties to the family of China’s retired security tsar Zhou Yongkang was sentenced to death on Friday on charges of leading a gang on a crime spree spanning two decades.

Liu Han, former chairman of Hanlong Mining, smokes a cigarette during a conference in Mianyang, Sichuan province, in this file photo taken March 21, 2008.REUTERS/Stringer/Files

The sentencing of Liu Han, handed down by a court in the central province of Hubei, was the culmination of one of the highest-profile cases against a private businessman since President Xi Jinping took office last year and began a campaign against pervasive graft.

Liu’s younger brother Liu Yong, also known as Liu Wei, was also sentenced to death. Microblog statements from state media outlets China Central Television and the Xinhua news agency said the brothers, along with their 36-member “mafia-style” gang, committed intentional homicide.

Xi’s crackdown has zeroed in on Sichuan province, where Liu’s company – privately held Hanlong Mining – is based. Sichuan was a power base for Zhou, the retired chief of China’s vast domestic security apparatus, who stands at the centre of the biggest corruption scandal in more than six decades, sources have told Reuters.

Sources have told Reuters that Liu was once a business associate of Zhou Bin, Zhou Yongkang’s eldest son.

State media have not explicitly linked Liu’s case to Zhou Yongkang, but have said Liu’s rise coincided with Zhou’s time as Sichuan’s Communist Party boss.

Liu’s lawyer could not be immediately reached for comment.

Willy Lam, a scholar of Chinese history and politics at the Chinese University of Hong Kong, said there would be extra attention paid to the case because of Liu’s links to the Zhou family.

“I think what’s happening is that Xi Jinping and (Party anti-corruption tsar) Wang Qishan want to establish a harsh precedent because this is one of the biggest corruption cases since Xi took over,” Lam said. “They want to set a precedent to make people afraid, in a sense, to have a deterrence impact on corrupt officials.”

via Businessman linked to China’s ex-security tsar sentenced to death | Reuters.

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Tags: China, Hubei, Liu, Sichuan, Xi JinPing, Zhou Yongkang

13/05/2014

The Communist Party: The gatekeepers | The Economist

IN RECENT days government office-workers around China have been called into meetings to study an article written nearly a quarter of a century ago by an obscure local leader on how to be a good secretary. Its advice—act modestly and don’t abuse your position for profit—would be banal were it not for the job the author now holds. The article was written by the current president, Xi Jinping. Those attending know full well that the purpose of the meetings is not to share tips on how to keep bosses happy, but to focus minds on a bigger issue: that personal assistants to leaders are often hugely powerful and sometimes just as hugely corrupt. And Mr Xi wants to rein them in.

A string of detentions has shed new light on the power of mishu, as these assistants are known. Between June and February, news emerged of investigations into four former mishu of Zhou Yongkang, a retired member of the Communist Party’s supreme body, the Politburo standing committee. Although the party does not say so, it is an open secret that Mr Zhou is the main target of China’s biggest anti-corruption campaign in years. He is the first person of standing-committee rank to face a corruption inquiry since the party came to power in 1949. Mr Xi appears not to want state-controlled media to mention Mr Zhou or his sins until a case against him is fully prepared. But the mishu, along with several other associates of Mr Zhou who have been detained in recent months, have become fairer game.

The alleged offences of the “mishu gang”, as the four have been dubbed in the Chinese press, appear to relate at least partly to activities after they left Mr Zhou’s service. In China a personal assistant to a high-ranking leader is often chosen by the leader himself—sometimes plucked from obscurity—and retains high rank even after his boss has moved to a different job (if he is not taken along to the new post).

There is plenty of scope for corruption as a mishu, because of the control the job gives over access to the leader. There is also great opportunity for acquiring independent power. Mr Zhou’s four former secretaries went on to take up high-ranking positions in government and state-owned business. Knowing the dark secrets of their former bosses gives ex-mishu a useful bargaining chip in acquiring plum jobs. The former bosses can benefit from placing their one-time confidants in positions they wish to influence.

via The Communist Party: The gatekeepers | The Economist.

China sacks ex-security chief’s aide

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Tags: China, communist party of china, Communists, Mr Zhou, politburo standing committee, Politburo Standing Committee of the Communist Party of China, Sichuan, Xi JinPing, Zhou, Zhou Yongkang

02/05/2014

Philanthropy: China’s Carnegie | The Economist

“THE problem of our age is the proper administration of wealth,” wrote Andrew Carnegie in 1889. More than a century later, the citizens of supposedly Communist China could hardly disagree. Carnegie, one of the wealthiest men of America’s Gilded Age, soon set about giving his money away, and on April 24th Jack Ma, one of the wealthiest men of China’s Gilded Age, suggested he would start to do the same. Mr Ma and Joseph Tsai, co-founders of Alibaba, an online marketplace, announced the creation of philanthropic trusts that could be worth as much as $3 billion. “Somebody has to do something,” says Mr Ma of China’s environmental and health-care problems. “Our job is to wake people up.”

It is easy to be cynical about this. The gift is a move taken straight out of a Silicon Valley public-relations playbook, ahead of Alibaba’s expected initial public offering this year, which could value the company at $150 billion. But it could still have a remarkable effect not just on China’s fast-expanding class of super-rich, but also on its government.

China’s wealthy are a notoriously stingy lot. When two of America’s best-known philanthropists, Bill Gates, who has advised Mr Ma, and Warren Buffett, visited the country in 2010, a meeting they held was notable for the number of Chinese tycoons who stayed away. Of 122 billionaires around the world who have signed the Giving Pledge promoted by Messrs Buffett and Gates, promising to give away half their wealth by the end of their lives, not a single one is Chinese, even though China now has 358 billionaires, one-fifth of the global total.

The main reason for this is fear: many have made their money in the shadows of a supposedly socialist country, so few of China’s rich are keen to identify themselves publicly. China’s princelings, related to the leadership, are often the least enthusiastic of all, especially when the regime of Xi Jinping, China’s president, is condemning corruption, albeit selectively. Having made his money more publicly, Mr Ma may be an exception, but his foundation still adds pressure on other Chinese tycoons. Mr Xi should help, by publicly applauding Mr Ma and by making all donations tax-deductible.

It is also a prompt for Mr Xi to promote civil society. With its countryside teeming with poor children needing education and old people needing health care, the regime has decided to give non-governmental organisations (NGOs) more freedom to operate, under party scrutiny. Mr Xi needs to let them play a larger, more independent role. This highlights the party’s central dilemma: it is scared of allowing independent groups of citizens to flourish and help solve problems, and yet that is exactly what China needs. As long as civil society is kept weak, China’s social problems will get worse. Passing a new charity law, stalled for years, to clarify charities’ legal status would be a useful step in the right direction.

The question for Mr Ma is how far he is prepared to nudge the regime in this direction. His public stance is, sensibly, that he wants to work with the government, not confront it. But the areas he is likely to focus on—education, health care and the environment—matter enormously, and technology can spur political change. Mr Ma recently launched kits for smartphone users to crowdsource data on poor water quality across China, a sly dose of insurrection. Carnegie became famous not just for the money he gave away and the example he set to other philanthropists, but for the way he prompted the American government to embrace education, civic programmes and social reform. Mr Ma’s money and example can do the same for China, if only the Communist Party will allow it.

via Philanthropy: China’s Carnegie | The Economist.

Giving in

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Tags: Alibaba, Andrew Carnegie, Bill Gates, China, Communist Party, Giving Pledge, Jack Ma, Xi JinPing

24/04/2014

Mumbai Shop Owners: Cut Taxes and Tame Corruption, Please – India Real Time – WSJ

As Mumbai’s traders hit the polls Thursday, many said they voted in favor of lower taxes and against corruption. High income and sales tax, import duty and rising prices have made it tougher to do business, many shop owners said.

Chetan Pishtoi at his plywood store, Sagar Ply, in South Mumbai. Shanoor Seervai/The Wall Street Journal

“In the past, I voted for the Congress,” says Chetan Pishtoi, a plywood-shop owner at Colaba market in South Mumbai, referring to the political party that currently leads India’s national government. “But now my eyes have opened. I see what [Narendra] Modi has done in Gujarat. If he wins, maybe he will do the same for India,” says Mr. Pishtoi, 30 years old.

Mr. Modi, the prime ministerial candidate of the rival Bharatiya Janata Party, is campaigning on the economic strength of the western state of Gujarat, where he is chief minister.

Mr. Pishtoi says food prices rose so much in recent years that he had to give his employees raises. “The public in Mumbai are sleeping hungry and the government hasn’t done anything about it,” Mr. Pishtoi says. Tomatoes and onions, he says, are priced beyond the reach of many.

Raju Lalwani at his men’s clothing store in Mumbai. Shanoor Seervai/The Wall Street Journal

Raju Lalwani, who runs a men’s clothes store, is also concerned about inflation. “Cloth has become so expensive, and even the tailors charge too much for stitching,” Mr. Lalwani says. “If the political party changes, maybe business will improve.”

His shop, Lovely Silk Stores, has been a family-run business for three generations. But the 58-year-old says his children won’t inherit the business. His son is studying to be an accountant, and his daughter is in grade 12.

via Mumbai Shop Owners: Cut Taxes and Tame Corruption, Please – India Real Time – WSJ.

Posted in corruption, Economics, India alert, Internal politics, Politics | Leave a Comment »

Tags: Bharatiya Janata Party, Business, Chetan Pishtoi, Gujarat, India, Modi, mumbai, Narendra Modi, South Mumbai

23/04/2014

Xi’s Corruption Crackdown Hits China’s Restaurants – Businessweek

Dirty officials aren’t the only ones getting slammed as Xi Jinping continues his crackdown on corruption and waste. China’s restaurant industry grew 9 percent, to 2.56 trillion yuan ($411 billion), last year, its slowest growth in more than two decades, according to a report released by the China Cuisine Association on April 19.

Restaurants, particularly the pricier ones, have long been popular venues for China’s bureaucrats and the businessmen wanting to curry favor with them. “This is a sign that the central government’s antigraft campaign against waste and extravagance has been well implemented,” said Feng Enyuan, deputy chairman of the CCA, reported the China Daily on April 21.

Midrange and high-end restaurants have been particularly hard hit, according to the association. China Chuanjude Group, the 150-year-old state-owned roast duck chain, saw its revenue fall 2.13 percent, to 1.9 billion yuan, while net profit dropped 27.6 percent last year, to 110 million yuan. In response, the chain has tried to lure more families and friends, in part by adding more affordable dishes to its menu.

via Xi’s Corruption Crackdown Hits China’s Restaurants – Businessweek.

Posted in austerity, China alert, corruption, Economics, Good news, luxury brand, Politics | Leave a Comment »

Tags: Abuse, Asia, Beijing, China, communist party of china, Xi JinPing

19/04/2014

Chairman of China Resources removed from office – Sports – Chinadaily.com.cn

Song Lin, chairman of state-owned China Resources (Holdings) Co., Ltd, has been dismissed from office for suspected serious discipline and law violations, authorities said Saturday.

Song was also removed from his office as the Communist Party of China (CPC) chief of the enterprise, said an official with the Organization Department of the CPC Central Committee.

The case is being handled according to relevant procedures, the official said.

The news came after the CPC Central Commission for Discipline Inspection announced earlier that Song was under investigation.

via Chairman of China Resources removed from office – Sports – Chinadaily.com.cn.

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Tags: Central Commission for Discipline Inspection of the Communist Party of China, China, china resources, communist party of china, CPC, CPC Central Commission for Discipline Inspection, cpc central committee, office, Organization Department, Organization Department of the Communist Party of China Central Committee, Song Lin, Xi JinPing

11/04/2014

In China, Xi’s Anticorruption Drive Nabs Elite, Low Ranks Alike – Businessweek

Chinese President Xi Jinping’s anticorruption campaign has lasted longer, gone deeper, and struck higher than many analysts and academics had expected. Xi has been so zealous that since late last year retired Communist Party leaders including ex-President Jiang Zemin have cautioned him to take a more measured pace and not be too harsh, say Ding Xueliang, a professor of social science at the Hong Kong University of Science & Technology, and Willy Lam, an expert on elite politics at the Chinese University of Hong Kong.

Xi is cracking down on the army and the police at the same time, something no leader has done before, says Ding. Gu Junshan, a lieutenant general in charge of logistics for the People’s Liberation Army (PLA), has been charged with bribery, embezzlement, and abuse of power, the official Xinhua News Agency reported on March 31. He will be tried in military court.

China’s former top cop and security czar Zhou Yongkang is under investigation for corruption, say Ding and Lam. When asked at a March 2 press conference whether Zhou was under suspicion, a government spokesman avoided a direct answer, saying, “Anyone who violates the party’s discipline and the state law will be seriously investigated and punished, no matter who he is or how high ranking he is.” He added what seems to be a veiled confirmation: “I can only say so much so far. You know what I’m saying.”

More than 180,000 party officials were punished for corruption and abuse of power last year, according to the Central Commission for Discipline Inspection, the party’s watchdog. While most were low-level officials—or “flies,” as Xi has put it—they also included senior party members—“tigers,” in Xi’s words. Thirty-one senior officials were investigated by the commission last year: Eight had their graft cases handed over to prosecutors. The remaining 23 are still being investigated.

via In China, Xi’s Anticorruption Drive Nabs Elite, Low Ranks Alike – Businessweek.

Posted in austerity, China alert, corruption, Economics, Good news, Politics, Social & cultural | Leave a Comment »

Tags: China, Hong Kong, Hong Kong University of Science & Technology, Jiang Zemin, People's Liberation Army, Xi JinPing, Zhou Yongkang

01/04/2014

China charges former senior military officer with graft: Xinhua | Reuters

China has charged former senior army officer Gu Junshan with corruption, state news agency Xinhua said, in what is likely to be the country’s worst military scandal since a vice admiral was jailed for life for embezzlement in 2006.

An unfinished residence which belongs to former People's Liberation Army (PLA) General Gu Junshan is pictured in Puyang, Henan province January 19, 2014. REUTERS/Stringer

In a renewed campaign on graft, Chinese President Xi Jinping has vowed to go after both powerful “tigers” and lowly “flies”, warning that the issue is so severe it threatens the ruling Communist Party’s survival.

Gu has been charged with corruption, taking bribes, misuse of public funds and abuse of power, Xinhua said on one of its official microblogs on Monday. He will be tried by a military court, it added.

Three sources with ties to the leadership or military, speaking on condition of anonymity, said Gu also sold military positions.

Gu has been under investigation for corruption since he was sacked as deputy director of the logistics department of the People’s Liberation Army (PLA) in 2012, sources have said.

Sources told Reuters this month that Xu Caihou, 70, who retired as vice chairman of the powerful Central Military Commission last year and from the Communist Party’s decision-making politburo in 2012, was under virtual house arrest while helping in the probe into Gu.

As one of Gu’s main supporters in his rise through the ranks, Xu is being implicated in ignoring, or at least failing to report, Gu’s alleged misdeeds.

Reuters has not been able to reach either Xu or Gu for comment. It is not clear if they have lawyers.

via China charges former senior military officer with graft: Xinhua | Reuters.

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Tags: Central Military Commission, China, Chinese President Xi Jinping, Communist Party, communist party of china, Gu Junshan, People's Liberation Army, senior military officer, Xi JinPing, Xinhua News Agency, Xu Caihou

30/03/2014

Exclusive: China seizes $14.5 billion assets from family, associates of ex-security chief – sources | Reuters

Chinese authorities have seized assets worth at least 90 billion yuan ($14.5 billion) from family members and associates of retired domestic security tsar Zhou Yongkang, who is at the centre of China’s biggest corruption scandal in more than six decades, two sources said.

China's Public Security Minister Zhou Yongkang reacts as he attends the Hebei delegation discussion sessions at the 17th National Congress of the Communist Party of China at the Great Hall of the People, in Beijing in this October 16, 2007 file photo. REUTERS/Jason Lee/Files

More than 300 of Zhou’s relatives, political allies, proteges and staff have also been taken into custody or questioned in the past four months, the sources, who have been briefed on the investigation, told Reuters.

The sheer size of the asset seizures and the scale of the investigations into the people around Zhou – both unreported until now – make the corruption probe unprecedented in modern China and would appear to show that President Xi Jinping is tackling graft at the highest levels.

But it may also be driven partly by political payback after Zhou angered leaders such as Xi by opposing the ouster of former high-flying politician Bo Xilai, who was jailed for life in September for corruption and abuse of power.

Zhou, 71, has been under virtual house arrest since authorities began formally investigating him late last year. He is the most senior Chinese politician to be ensnared in a corruption investigation since the Communist Party swept to power in 1949.

“It’s the ugliest in the history of the New China,” said one of the sources, who has ties to the leadership, requesting anonymity to avoid repercussions for speaking to the foreign media about elite politics.

The government has yet to make any official statement about Zhou or the case against him and it has not been possible to contact Zhou, his family, associates or staff for comment. It is not clear if any of them have lawyers.

via Exclusive: China seizes $14.5 billion assets from family, associates of ex-security chief – sources | Reuters.

Posted in China alert, corruption, Economics, Good news, Politics | Leave a Comment »

Tags: assets, Bo Xilai, China, Communist Party, communist party of china, corruption investigation, corruption scandal, Family, family members, President Xi Jinping, Xi JinPing, Zhou, Zhou Yongkang

26/03/2014

China’s Three Gorges replaces top executives amid graft probe | Reuters

China’s Three Gorges Corp, which built the world’s biggest hydropower scheme, has replaced its chairman and general manager, the company said, in the latest major reshuffle of a state-owned firm as the government steps up a fight on graft.

China's Three Gorges power company CEO Cao Guangjing makes his statement before the deal signing with Energia de Portugal in Lisbon December 30, 2011. REUTERS/Jose Manuel Ribeiro

Some officials of Three Gorges, set up in 1993 to run the hydropower scheme, were guilty of nepotism, shady property deals and dodgy bidding procedures, the ruling Communist Party’s anti-graft watchdog found in February.

The scandal has reignited public anger over the $59-billion dam, which was funded by a special levy paid by all citizens.

Chairman Cao Guangjing has been removed from his position and would be assigned another job, the company said in a statement on Tuesday. It named Cao’s replacement as Lu Chun, but gave no further details.

via China’s Three Gorges replaces top executives amid graft probe | Reuters.