Affichage des articles dont le libellé est Chinese Corruption. Afficher tous les articles
Affichage des articles dont le libellé est Chinese Corruption. Afficher tous les articles

mercredi 19 décembre 2018

Chinese Expansionism

Greenland could become China's Arctic base
By John Simpson
Greenland's capital, Nuuk, needs investment -- but could it come from China?

China is flexing its muscles. 
As the second richest economy in the world, its businessmen and politicians are involved just about everywhere in Asia, Africa and Latin America.
Now, though, China is taking a big interest in a very different part of the world: the Arctic.
It has started calling itself a "near-Arctic" power, even though Beijing is almost 3,000km (1,800 miles) from the Arctic Circle. 
It has bought or commissioned several ice-breakers -- including nuclear-powered ones -- to carve out new routes for its goods through the Arctic ice.
And it is eyeing Greenland as a particularly useful way-station on its polar silk road.
Greenland is self-governing, though still nominally controlled by Denmark.
It is important strategically for the United States, which maintains a vast military base at Thule, in the far north. 
Both the Danes and the Americans are deeply worried that China should be showing such an interest in Greenland.

Least densely populated place on Earth
You've got to go there to get an idea of how enormous Greenland is.
It's the 12th-largest territory in the world, 10 times bigger than the United Kingdom: two million square kilometres of rock and ice.Most of Greenland is covered in permanent ice -- a vast frozen wilderness

Yet its population is minuscule at 56,000 – roughly the size of a town in England.
As a result, Greenland is the least densely populated territory on Earth. 
About 88% of the people are Inuit; most of the rest are ethnically Danish.
In terms of investment neither the Americans nor the Danes have put all that much money into Greenland over the years, and Nuuk, the capital, feels pretty poor. 
Denmark does hand over an annual subsidy to help Greenland meet its needs.
Every day, small numbers of people gather in the centre to sell things that will generate a bit of cash: cast-off clothes, children's schoolbooks, cakes they've made, dried fish, reindeer-horn carvings. 
Some people also sell the bloody carcases of the big King Eider ducks, which Inuits are allowed to hunt but aren't supposed to sell for profit.

China's air power
At present you can only fly to Nuuk in small propeller-driven planes. 
In four years, though, that will change spectacularly.
The Greenlandic government has decided to build three big international airports capable of taking large passenger jets.
China is bidding for the contracts.

Airport officials say the planned work is a huge project -- but an important one

There'll be pressure from the Danes and Americans to ensure the Chinese bid doesn't succeed, but that won't stop China's involvement in Greenland.
Interestingly, I found that opinion about the Chinese tended to divide along ethnic lines.
Danish people were worried about it, while Inuits thought it was a good idea.
The Greenlandic prime minister and foreign minister refused to speak to us about their government's attitude to China, but a former prime minister, Kuupik Kleist, told us he thought it would be good for Greenland.
But the foreign affairs spokesman of the main Venstre party in the Danish coalition government, Michael Aastrup Jensen, was forthright about Chinese involvement in Greenland.
"We don't want a communist dictatorship in our own backyard," he said.

Much-needed wealth
China's sales technique in other countries where its companies operate is to offer the kind of infrastructure they badly need: airports, roads, clean water.
The Western powers that once colonised many of them haven't usually stepped in to help, and most of these governments are only too grateful for Chinese aid.
But it comes at a price.

The former prime minister says someone - anyone - has to invest in Greenland

China gets access to each country's raw materials -- minerals, metals, wood, fuel, foodstuffs. 
Still, this doesn't usually mean long-term jobs for local people. 
Large numbers of Chinese are usually brought in to do the work.
Country after country has discovered that Chinese investment helps China's economy a great deal more than it helps them
And in some places -- South Africa is one of them -- there are complaints that China's involvement brings greater corruption.
But in Nuuk it's hard to get people to focus on arguments like these.
What counts in this vast, empty, impoverished territory is the thought that big money could be on its way. 
Kuupik Kleist put the argument at its simplest.
"We need it, you see," he said.

jeudi 7 septembre 2017

Billionaire Who Accused Top Chinese Officials of Corruption Asks U.S. for Asylum

By MICHAEL FORSYTHE

Guo Wengui, a billionaire property developer, is seeking asylum in the United States because his public charges against Chinese officials have made him “a political opponent of the Chinese regime,” his lawyer said. 

A billionaire property developer who has accused some of China’s most powerful officials of corruption has applied for political asylum in the United States, his lawyer said.
The billionaire, Guo Wengui, who is in the United States on a tourist visa that expires later this year, is seeking asylum status because his public charges against Chinese officials have made him “a political opponent of the Chinese regime,” Thomas Ragland, a Washington-based lawyer representing him, said in a telephone interview late Wednesday.
Asylum – even a pending asylum application — would give Mr. Guo more protection because he could stay in the United States while the application was being considered, a process that can take years, Mr. Ragland said.
“Asylum offers a level of protection that is different from having a visa status,” Mr. Ragland said. “Visas can be canceled or revoked.”
From his $68 million apartment overlooking Central Park in Manhattan, Mr. Guo, also known as Miles Kwok, has used Twitter and YouTube to publicize his claims that Wang Qishan, a member of the elite Politburo Standing Committee who oversees the ruling Communist Party’s own anticorruption efforts, and his family members secretly control one of China’s largest conglomerates.
His accusations made against the family of Wang’s immediate predecessor can be corroborated.

Wang Qishan, a member of China’s elite Politburo Standing Committee whose retirement status will be decided at a Communist Party meeting next month. Wang and his family secretly control one of China’s largest conglomerates.

Mr. Guo’s actions have earned the ire of the Chinese government. 
In April Beijing asked Interpol, the global police organization, to issue a global warrant for his arrest. He is also being sued for libel in United States courts by several Chinese individuals and companies.
The asylum application could present a diplomatic quandary for the Trump administration, which is seeking China’s help in isolating North Korea after it conducted a series of missile tests and underground nuclear tests. 
Mr. Guo is arguably China’s most-wanted man, and giving him asylum would almost certainly antagonize Beijing, which may interpret the move as tacit approval of Mr. Guo’s tactics to undermine China’s leadership.
Articles in China’s closely controlled news media have accused Mr. Guo of crimes including fraud, money laundering and rape. 
In April one of his associates, a former vice minister of state security, appeared in a televised confession in which he said Mr. Guo had bribed him.
Mr. Guo’s asylum application may be complicated by his claims that he has passports from many countries, including the United Arab Emirates, and is no longer a citizen of China. 
It is unclear why Mr. Guo could not go to another country where he has citizenship when his United States visa expires, though Mr. Ragland said that the United States might be the only country where Mr. Guo feels safe from the long arm of the Chinese state.
Mr. Guo’s asylum application, which Mr. Ragland said was received Wednesday by a government processing center in Vermont, comes ahead of an important Communist Party meeting next month that will determine whether Wang, who is past the customary retirement age, will be able to remain on the Politburo Standing Committee.
Mr. Guo’s accusations were seen by some analysts as weakening Wang’s position. 
But on Wednesday, Beijing sent a signal that Wang still enjoyed strong backing from his peers. 
Three of his fellow members of the seven-man Politburo Standing Committee, plus the top aide to Xi Jinping, attended a ceremony in Beijing with Wang to mark the 100th anniversary of the birth of his father-in-law, a senior leader who died in 1994.

vendredi 1 septembre 2017

China's Nigerian Misadventures

By David Fickling

Just when the world thought China was retreating -- pushing acquisitive private companies to relinquish their global shopping sprees -- it looks like Beijing might be getting out its check book again.
China Civil Engineering Construction Corp. will build a $5.8 billion hydroelectric power station in eastern Nigeria, with 85 percent of the funding to come from Beijing's Export-Import Bank, Nigeria's power minister told reporters in the capital Abuja on Wednesday. 
The Mambilla project, first mooted in the early 1980s, has long been dreamed about as Nigeria's answer to the Three Gorges Dam in China. 
Its generation capacity of 3,050 megawatts would more than double the country's current hydro potential.
Believe it when you see it.
Despite what ought to be strong mutual interests, the world's biggest energy consumer and Africa's biggest oil producer have a history of misadventures stretching back at least a decade. 
Wooed by President Hu Jintao in multiple visits during the 2000s as a potential source for the country's voracious petroleum needs, Nigeria's crude exports to China have since fallen behind not just Angola -- which is often a bigger supplier to China than Saudi Arabia -- but even relative minnows such as Ghana, South Sudan and Gabon:

The Best and the Rest
Angola accounts for about two-thirds of China's oil imports from sub-Saharan Africa

Source: China Customs General Administration, Bloomberg, Gadfly calculations
The Mambilla project itself has been dogged by more than a decade of political interference and litigation.
Former President Olusegun Obasanjo once presented it as a model for his plan to grant Chinese companies oil exploration blocks in return for Beijing financing and building major infrastructure. 
On a 2005 visit to the Chinese capital, he reportedly scribbled an invitation to build the dam onto his business card while meeting China Gezhouba Group Corp., a Three Gorges contractor.
Obasanjo tied Chinese financing for the project to the offer of four petroleum exploration blocks to state-owned Cnooc Ltd. -- but the proposal was canceled after elections in 2007 brought Umaru Yar'Adua to power instead, along with a more skeptical view of such oil-for-infrastructure deals. 
A revised version was mooted in 2012, bringing in Sinohydro Corp. as major partner -- but that, too, has stalled
In the latest iteration, China Civil Engineering Construction will build the project, according to Nigeria's Power, Works and Housing Minister Babatunde Fashola
Well, we'll see.
To get a sense of why these deals keep failing, it's worth looking at another major Chinese-Nigerian project. 
U.S. authorities are investigating China Petroleum & Chemical Corp., or Sinopec, over allegations that the state-controlled refiner paid Nigerian officials about $100 million of bribes to resolve a business dispute, people familiar with the matter told Hugo Miller and Tom Schoenberg of Bloomberg News.
Sinopec had bought Geneva-based Addax Petroleum for $7.8 billion in 2009 in part to increase its access to West African crude after the failure of Obasanjo's oil-for-infrastructure push.
The deal hasn't worked out so well: While only paltry amounts of oil have trickled from Nigeria to China, Addax's auditors Deloitte LLP resigned in January after receiving allegations of bribery and embezzlement from whistleblowers. 
At least $80 million of the payments queried by Deloitte related to an engineering contract for two Sinopec oilfields, according to a filing to the U.K.'s securities regulator.

THINGS FALL APART

Corruption and construction projects in Nigeria go together like joll of rice and chicken, so it's hardly surprising to see Sinopec embroiled in these allegations -- but if an $80 million engineering contract can cause problems, what about a $5.8 billion dam?
There was a point when Nigeria's oil riches made it a natural partner for China -- but as Beijing has diversified supplies, other countries have stepped up. 
China doesn't care that much about the rule of law in countries where it invests -- but it does care deeply about stability. 
Nigeria has been unable to provide this, as underlined by the back-and-forth over the Mambilla project and at Addax Petroleum.
Sub-Saharan Africa's most populous nation was for much of the past decade its biggest recipient of foreign direct investment. 
These days, it trails not just Angola, but Mozambique and Ghana too. 
When even China's unfussy investors are having second thoughts, you know you're in trouble.

samedi 13 mai 2017

Billionaire's corruption claims ripple through China's Communist Party

A Chinese billionaire in exile is meddling with the inner workings of China's Communist Party.
DW

China's government censor warned in April there would be "serious consequences" for unauthorized media coverage of Guo Wengui, the billionaire real estate magnate living in the United States. 
His case is "highly politically sensitive," it stated.
There is a reason China's Communist Party is so concerned: A few days earlier Guo had accused high-ranking party members of corruption in a live interview with the Mandarin-language service of Voice of America (VOA), a US government-funded media outlet. 
The livestream, scheduled for three hours, was halted after 80 minutes. 
The video stopped just as Guo began discussing Wang Qishan, who heads China's internal corruption watchdog.
Five VOA employees were put on administrative leave thereafter, including Service Chief Sasha Gong. 
The decision to cut short the livestream was made before it began, VOA stated. 
It added there was no pressure to do so from the US government, and while China did pressure the organization, VOA said that did not influence its decision.

Wang Qishan's role as chief corruption watchdog is considered second in power only to President Xi Jinping

Ex-spy chief on video

Bill Ide, a Beijing correspondent for VOA, was informed that the Guo interview was viewed as an interference in internal Chinese affairs and summoned by the Foreign Ministry, two VOA employees told The New York Times. 
The broadcast will reportedly play a role in visa extensions for VOA journalists.
A Chinese media campaign against Guo is underway, including videos with Ma Jian, the former acting director of state security who was detained two years ago in a corruption investigation. 
In the videos, he speaks about a number of unseemly business dealings he helped Guo with.
China's foreign ministry said on April 20 that Interpol had issued a "red notice" for Guo. 
A "red notice" is an international alert for someone wanted for extradition. Guo, a member of Donald Trump's Mar-a-Lago Club in Florida, resides in the US, which does not have an extradition treaty with China.

Abduction in Hong Kong

Despite China's official designation as a socialist country "with a Chinese character," its economic opening starting more than 25 years ago has produced the most billionaires in the world. 
Real estate has been a particularly fruitful way to amass wealth, which is maintained with the help of political connections and protection. 
But it can be risky business: Billionaire Xiao Jianhua was abducted from his hotel in Hong Kong in January and returned to mainland China. 
The Canadian passport holder, who the New York Times reported in 2014 had business ties with relatives of Xi Jinping, has not been heard from since.

Billionaire Xiao Jianhua was abducted from his hotel in Hong Kong and taken to mainland China in January

Dangerous political infighting

Information on powerful families is particularly valuable this year. 
The Communist Party will hold its quinquennial conference in the fall, during which new leadership will be chosen. 
Corruption accusations can serve as a useful tool for eliminating opposition vying for top posts. 
Guo's claims may wreak havoc on internal party politics, and there may be more to come: He has announced a press conference for June in New York. 
He has already compared the relationship between Chinese business people and politicians to prostitution.

jeudi 27 avril 2017

What you need to know about China’s most wanted man

By Zheping Huang
Can't stop won't stop.

The Chinese government can’t seem to do anything about its most wanted man, who now lives in exile in the US.
Guo Wengui is not the first businessperson to have fled China, perhaps with secret information about the ruling elite. 
Previous fugitives, however, have either decided to stay silent and keep their whereabouts secret (paywall), or have been forcefully taken back to China before they can kick up too much of a fuss.
Guo is an outlier. 
Equipped with masterful social media skills, and protected by bodyguards (link in Chinese) in his Manhattan penthouse, Guo has been making serious accusations of corruption against China’s former and current officials. 
One of them, Wang Qishan, is widely considered the second-most powerful man in the nation.
The episode offers a good example of how the intricate ties between China’s rich and powerful can risk turning into a liability. 
If Guo is to be believed, China’s ruling Communist Party may be far more corrupt than the party is ready to ever publicly admit.

Who the heck is he?

Guo, also known as Miles Kwok, is a Chinese property tycoon who has been living overseas for more than two years. 
At the height of his career, Guo had a net worth of $2.6 billion, ranking 74th among China’s richest in 2014, according to the Hurun Report
One of his most well-known properties is the Pangu Plaza, a torch-shaped building close to Beijing’s Olympic stadium.




























The 50-year-old billionaire first came to the spotlight during a corporate feud in late 2014. 
At the time Guo sought to acquire a large stake in Founder Securities, China’s sixth-largest brokerage, but squabbled over the terms with his former business partner Li You, who was the head of Founder’s state-owned parent.
The aborted business deal ended badly for both sides. 
In January 2015, Li was arrested by police on alleged corruption charges, and soon afterwards, Ma Jian, a former deputy spy chief who is reportedly a close ally to Guo, was also investigated for corruption.
In March 2015, Chinese financial news outlet Caixin published an investigative report (link in Chinese) detailing how Guo developed close ties with high-ranking Chinese officials including Ma to further his business interests. 
The report also revealed that in 2006 Guo secretly recorded a sex tape of a Beijing deputy mayor for not approving the Pangu project initially.
Guo denied that report and launched a personal attack on Caixin’s influential editor-in-chief Hu Shuli
In response, Caixin sued Guo for defamation.

What does he allege?
Since then, Guo has stayed quiet for the most part as he shuttled between Europe and the US—until recently. 
In the last few months he has taken to Twitter enthusiastically and granted several interviews with US-based publications, accusing former and current Chinese Communist Party officials of corruption.
“Striving for China’s true rule of law!” he says in his Twitter bio
“This is just the beginning!”
One of his latest allegations of corruption is against Wang Qishan, China’s top graft-buster who’s known to be a close ally of Xi Jinping
In a live interview with the Voice of America (VOA) last week, Guo claimed that deputy national police chief Fu Zhenhua, on behalf of Xi, had demanded he look into Wang’s nephew’s investment in Hainan Airlines—a very busy acquirer of travel-related assets around the world in the last few years. 
Guo said that Fu had made threats against his family to force him to cooperate. 
Guo said Fu told him that “Chairman Xi just uses (Wang), but doesn’t trust him.”
Guo also went after Wang’s predecessor, He Guoqiang, the former top disciplinary official before Xi came to office in 2012. 
In a March interview with Mirror Media Group, a Chinese-language news outlet based in Long Island, Guo claimed that He’s son He Jintao was the behind-the-scenes backer of Guo’s business rival Li You, the second-biggest shareholder in Founder Securities, who is now in jail.
The New York Times, citing corporate records and an interview with He’s relative, reported (paywall) that the He family did appear to control a stake in Founder through a series of shell companies.
Guo claims his assets in China were seized, and that his family members and former employees are being detained. 
He says he owns 11 passports, including ones from the European Union and the US, and that he hasn’t used any Chinese identification for more than two decades.

What does the Chinese government say?

China has asked Interpol, the international police organization, to issue a “red notice” to seek Guo’s arrest. 
Countries do not have to honor a red notice, which is not an international arrest warrant. 
In November, Interpol appointed a Chinese security official as its new chief.
Chinese authorities did not give reasons for the notice, which was issued just before Guo’s VOA interview. 
Hong Kong’s South China Morning Post reported, citing unidentified sources, that Guo is accused of giving about $9 million in bribes to Ma, the disgraced former spy-master.
Guo said in the VOA interview that he was in regular contact with FBI agents, and was not worried about being arrested.
VOA said Chinese officials had expressed concerns about Guo’s interview. 
The Chinese foreign ministry has threatened not to renew VOA’s correspondents’ visas in China in response to the interview. 
VOA abruptly ended the interview early, and later said in a statement that it was due to a “miscommunication.”
Meanwhile, China is publicly going after Guo. 
After the VOA interview, Ma, who has not gone on trial yet, appeared for the first time after his arrest in a 20-minute video on YouTube to confess that he had misused his power to help Guo gain business interests in return for gifts including cash and properties.
The Beijing News reported (link in Chinese), citing unidentified government sources, that two executives of Guo’s Beijing-based companies were arrested last week for bribery and fraud charges. The newspaper also revealed that Xiang Junbo—China’s insurance regulator who was recently arrested—helped Guo get loans that Guo later misappropriated to buy a Hong Kong property in 2014, when Xiang was still working at Agricultural Bank of China, one of the nation’s big-four state banks.
So he must be a big deal.
Guo’s fight against the party establishment comes on the eve of its major leadership reshuffle this fall, when Xi is slated to start his second five-year term.
In the past five years, Xi has netted thousands of allegedly corrupt officials in a seemingly never-ending, ruthless anti-graft campaign steered by his powerful ally Wang. 
Speculation is mounting that Xi is likely to break an unwritten rule on retirement age in the party to let 68-year-old Wang seek a second term. 
Guo’s claims against Wang would seriously damage the legitimacy of Xi’s anti-corruption efforts.
The Chinese Communist Party also hates uncertainty, and Guo’s very public crusade against it is exactly what the party does not need, especially ahead of major events. 
Guo said that in the next few weeks he plans (link in Chinese) to hold a tell-all press conference on China’s anti-corruption campaign, and said he has information on four specific officials including Wang Qishan.
At least for now, no one appears to be able to stop Guo from speaking out from his Manhattan home.

Can anyone stop him?

For a few brief moments, it seemed that Guo may have been silenced.
Twitter briefly suspended Guo’s account today (April 27). 
Almost all of his 103,000 followers had disappeared when the account was back up and running, but those followers were later restored. 
Twitter did not immediately respond to a request for comment.
A similar episode happened to Guo’s Facebook account last week. 
The account was restored after Guo complained about his suspension from Facebook on Twitter. Facebook said that the suspension was a mistake (paywall) due to the company’s automated systems, without elaborating.

vendredi 21 avril 2017

"Chinese Corruption" Is A Pleonasm

China Seeks Arrest of Billionaire Who Accused Officials’ Relatives of Graft
By MICHAEL FORSYTHE

A Chinese-born billionaire who in recent months has publicized allegations of corruption against relatives of high-ranking Communist Party officials is now a wanted man after Beijing asked Interpol to issue a global request for his arrest.
China’s Foreign Ministry said on Wednesday that the country had asked Interpol, the global police organization, to arrest the billionaire, Guo Wengui, hours before he appeared on television to deliver what he said would be a “nuclear bomb” of corruption allegations against the families of top Communist Party officials.
Mr. Guo, 50, has lived abroad for the past two years after a business deal to acquire a brokerage went sour. 
In March, he accused the son of a former top Communist Party official of corruption. 
On April 15, The New York Times, citing corporate records and an interview with one of the official’s relatives, reported that some of his allegations could be substantiated.
China asked Interpol to issue a so-called red notice to its member countries for Mr. Guo’s arrest, Lu Kang, a Foreign Ministry spokesman, told reporters on Wednesday in Beijing. 
Mr. Lu said that the notice had been issued, but that Mr. Guo’s name does not appear on Interpol’s wanted list
Interpol, in a statement, said that any of its 190 member countries could request that wanted notices not be publicized.
Mr. Guo is accused of giving 60 million renminbi, or about $8.7 million, in bribes to a former top intelligence official, Ma Jian, The South China Morning Post reported on Wednesday, citing people briefed on the matter whom the newspaper did not identify. 
Mr. Ma has been referred to in Chinese news outlets as Mr. Guo’s political patron.
Countries do not have to honor red notices, and as of Wednesday, Mr. Guo was not in custody. Instead, he was at his penthouse apartment on Fifth Avenue in Manhattan, which he bought in 2015, through a shell company, for $67.5 million. 
Two reporters from Voice of America’s Chinese-language service conducted a live television interview with him in the apartment.
In the interview, Mr. Guo called the report that he bribed Mr. Ma “false,” and he said he was not a Chinese citizen. 
He said he held passports from 11 other countries. 
Mr. Guo is a member of Trump’s Mar-a-Lago resort.

China asked Interpol to issue a so-called red notice to its member countries for the arrest of Guo Wengui, a Foreign Ministry spokesman said.

He said he was in regular contact with F.B.I. agents and was not worried that he would be arrested. Mr. Guo said the issuance of the red notice was an attempt to prevent the Voice of America interview.
In the interview, Mr. Guo made new allegations about business empires secretly controlled by Chinese leaders, in this instance the nephew of a current member of the Communist Party’s ruling Politburo Standing Committee. 
“If they weren’t so corrupt, they wouldn’t be scared of me.”
Voice of America, which operates independently but is funded by the United States government, billed the interview as three hours long, running promotions about Mr. Guo’s promise to deliver “nuclear bomb” revelations about corruption, with the first hour broadcast and the remainder in an online webcast.
But about 15 minutes into the second hour, Voice of America abruptly ended the interview, setting off intense speculation in Chinese-language social media as to why the broadcast ended.
China’s government pressed Voice of America to cancel the interview, an official with the broadcaster said. 
The Foreign Ministry summoned its Beijing-based correspondent, Bill Ide, on Monday, where he was told that the interview would be viewed by China as interference in its internal affairs and told that it might affect the renewal of journalists’ visas, according to two people at Voice of America with knowledge of the meeting.
Officials from the Chinese Embassy in Washington also called Voice of America in an effort to stop the interview from taking place, one person with direct knowledge of the conversations said.
The person added that at no time were executives at Voice of America contacted by the United States government about the interview. 
The people interviewed for this article spoke on the condition of anonymity to talk freely about communications with the Chinese government.
Voice of America executives, led by its director, Amanda Bennett, proceeded with the interview, with the understanding that the live portion last only one hour. 
The rest of the interview would be recorded to give reporters a chance to check Mr. Guo’s allegations and allow the Chinese government an opportunity to respond, the broadcaster said.
“In a miscommunication, the stream was allowed to continue beyond the first hour,” a Voice of America spokeswoman, Bridget Serchak, said in an emailed statement. 
“When this was noticed, the feed was terminated. We will release content from these interviews and will continue to report on corruption issues.”