News » Politics » How China Flouts Its Laws

---

• How China Flouts Its Laws
• 中国的不法
• Regime Power Broker Ships Money Out of China
• China to re-implement subsidies of car market
• Chinese travelers share fuel cost burden with struggling airlines
• China weighs stimulus options to spur growth
• Confusion as State-Owned Insurer Aims for Second-Biggest IPO After Facebook
• For Electric Car Company, Some Recent Challenges
• Father of a Tiananmen Victim Commits Suicide
• Irate India questions rule of law in China
• Candidates named for CCP's 18th National Congress
• Lenovo struggles with mobile devices despite strong PC sales
• China to focus on steadying growth as PMI falls
• Green light given to airports in Sichuan, Yan'an
• Taiwan to consider fitting cruise missiles on warships
• Hospital for illegal kidney trade found in Hangzhou
• China Investment Corp to invest large sum in Alibaba: report
• China's catering sales booming
• Beijing seeks to register all foreign residents
• Taobao reveals fashion habits of China's women

How China Flouts Its Laws Posted: 28 May 2012 09:00 PM PDT The fundamental question the Chinese government must face is lawlessness. China does not lack laws, but rather the rule of law.

中国的不法 Posted: 28 May 2012 09:00 PM PDT 现在中国政府必须面对的基本问题，就是官方无法无天为所欲为的现象。中国不缺法律，而是缺法治。

Regime Power Broker Ships Money Out of China Posted: 29 May 2012 08:01 PM PDT A China Eastern Airlines jet flies over a temple before landing in Taipei on June 29, 2010. Zeng Qinghong laundered money through the airlines to Taiwan in 2002. (Patrick Lin/AFP/Getty Images) After well-connected officials in China turn their influence into cash, they need to figure out how to move the money out of the country. No one is better connected than Zeng Qinghong, and, with the help of a Taiwanese businessman, Zeng and his family have set up enterprises that have allowed them to move huge sums offshore. Zeng has long had the reputation of being one of the Chinese Communist Party's (CCP's) most influential power brokers. Currently the head of the National People's Congress, he reached the peak of his official power in the years 2002-2007 when he was a member of the decision-making Politburo Standing Committee and the vice-president of China. Behind the scenes, Zeng has been credited with saving the political career of CCP head Jiang Zemin when Deng Xiaoping was looking to replace him in the early 1990s and helping Jiang out again by orchestrating the removal from office of Beijing Mayor Chen Xitong in 1995. According to a source familiar with Zeng Qinghong's dealings, Zeng first began working with the Taiwanese businessman when China Eastern Airlines ran into stiff economic turbulence in 2002. The Taiwanese businessman injected cash, saving the airline. Zeng Qinghong and his son, Zeng Wei, were very grateful. Zeng Wei was the behind-the-scenes boss of China Eastern. The new relationship would prove mutually beneficial. The Zengs' benefactor was the CEO of two financial companies in Taiwan and well-connected in Taiwan's political circles. Hong Kong Trade Zeng Qinghong and the businessman began working immediately to turn Zeng's political connections to their advantage. Zeng had been Jiang Zemin's point man on Hong Kong affairs and was named the head of the CCP's Hong Kong and Macao Project Coordination Group. One of Zeng's main tasks was to put in place the Closer Economic Partnership Arrangement (CEPA), a kind of free trade agreement between Hong Kong and the People's Republic of China. On the surface, CEPA appeared to be about attracting investment, but Zeng and Jiang's families had ulterior motives for wanting the agreement put in place.The Taiwan businessman bought a bank in Hong Kong at a low price. After CEPA was signed in 2003, that bank has been used to channel Taiwan funds through Hong Kong into the mainland, and for the Zeng and Jiang families to begin laundering money and shipping it from China overseas. A life insurance company owned by the Taiwan businessman entered the China market and its business partner was China Eastern Airlines. From then on, Zeng Wei together with the Jiang family started laundering money and sending it overseas through China Eastern Airlines. In 2006 the Shandong Luneng Group, a giant state-owned enterprise, was privatized, and, with channels established for moving money directly out of the country, the Zeng family was ready to take advantage. An estimated 70 billion yuan (US$11 billion at current exchange rates) in state assets were lost in the deal, and most of this money was transferred abroad. Political Influence Purchased One senior Taiwan politician, who is a close friend of the businessman, had his eyes on Jiang and Zeng. He put his money in the businessman's bank, and from there the senior politician bribed the Zeng and Jiang families. This politician bought from Zeng and Jiang a promise of "carrying out a policy of compromise on the Taiwan issue for the next few years." For those few years, during the critical moment, there was always someone on the PRC side who could come out and express opinions on Taiwan that met the needs of this Taiwan politician. The Zeng family had powerful influence in the Civil Aviation Administration of China (CAAC). In 2005, Pu Zhaozhou, the director of the Taiwan, Hong Kong and Macau office of CAAC, held a press conference on behalf of Taiwan Affairs Office of China's State Council, to announce the expansion of cross-strait charter flights. This was done without first even notifying the Taiwan Affairs Office, the PRC office that has authority over Taiwan affairs. This announcement was a political return to the Taiwan politician for bribing Zeng. Australian Home and Retirement CCP officials not only seek to move their money out of China, where they believe it will be safe even if the CCP falls. They also seek to move their families out of China for the same reason. Zeng had advised his son to immigrate to Australia and in 2008 Zeng Wei completed the purchase of Craig-y-Mor in Point Piper, at 32 million Australian dollars the third-most expensive house ever sold in Australia. Zeng was due to retire from the Politburo Standing Committee in October 2007 at the 17th National Congress but was trying to hang onto his place on the committee. At the 16th Party Congress in 2002, Zeng and Jiang had made up a rule that anyone 68 or older had to retire from the Standing Committee. They did so to push the widely admired Li Ruihuan off that key body. Zeng was now 68 but now he and Jiang in advance of the 17th Party Congress were arguing that the rule should not apply in Zeng's case. Zeng said he intended to stay on to "continue mentoring the new cadres." Some old officials and members of the Politburo who supported Party head Hu Jintao persistently requested that Zeng Qinghong explain clearly why his son had emigrated to Australia. Meanwhile, some old officials and members of the Politburo who supported Party head Hu Jintao persistently requested that Zeng Qinghong explain clearly why his son had emigrated to Australia. Each summer the Party's top officials get together at the beach resort Beidaihe. At the 2007 meeting, a retired official criticized how the Vice President's son had secretly emigrated to another country and then been publicized by foreign media. "This is too shameful, too indecent, too outrageous," the old official said. Facing accusations by many people, Zeng Qinghong became furious and yelled in a meeting that he didn't know about the immigration and couldn't control his son. Hu Jintao, because Zeng had "betrayed the country for money," used an article in People's Daily to give him a warning. Zeng Qinghong understood Hu's warning and was forced to retire. Related Articles Huge Number of Officials Poised to Escape China When Zeng stepped down, he put the best face on his disgrace, claiming he had sacrificed himself in order to help Xi Jinping, who joined the Standing Committee and then was named Hu Jintao's successor. chinareports@epochtimes.com Read the original Chinese article. The Epoch Times publishes in 35 countries and in 19 languages. Subscribe to our e-newsletter.

China to re-implement subsidies of car market Posted: 30 May 2012 04:23 AM PDT China plans to re-implement automobile subsidy programs with hopes of reviving the foundering domestic car market, reports Reuters. The new round of subsidies will differ slightly from the previous ...

Chinese travelers share fuel cost burden with struggling airlines Posted: 30 May 2012 04:07 AM PDT Passengers on Chinese airlines will continue to shoulder larger portions of the climbing cost of air travel as aviation fuel prices in China are among the highest in the world. Domestic airlines sa...

China weighs stimulus options to spur growth Posted: 29 May 2012 11:34 PM PDT With dark clouds gathering over the Chinese economy, the government has started to talk about the importance of supporting growth and speculation is mounting about what actions it will take.

Confusion as State-Owned Insurer Aims for Second-Biggest IPO After Facebook Posted: 29 May 2012 08:01 PM PDT A $6 billion listing of a giant Chinese state-owned insurer is taking on new twists and turns as bankers gear up for an increasingly taxing deal.

For Electric Car Company, Some Recent Challenges Posted: 28 May 2012 09:00 PM PDT Investors and analysts have questioned whether the BYD Company has the technology or the manufacturing quality to be an enduring competitor in the Chinese auto market.

Father of a Tiananmen Victim Commits Suicide Posted: 29 May 2012 02:51 PM PDT Two decades after the 1989 Tiananmen Massacre, Ya Weilin, the father of a Tiananmen Massacre victim, commited suicide.

Irate India questions rule of law in China Posted: 29 May 2012 05:08 PM PDT The Yiwu kidnapping controversy took a new turn on Tuesday when the Indian embassy wrote a strong rejoinder to an article by a Chinese professor criticizing its advisory to Indians visiting China.

Candidates named for CCP's 18th National Congress Posted: 30 May 2012 03:39 AM PDT A total of 167 cadres and 39 "first-line" members of the Chinese Communist Party have been nominated as candidates at the upcoming 18th National Congress, which will decide the country's new leadershi...

Lenovo struggles with mobile devices despite strong PC sales Posted: 30 May 2012 03:39 AM PDT While Chinese PC maker Lenovo posted an annual sales increase of 37% last year, its foray into the mobile electronics sector has been far less impressive. The world's second-largest PC maker by sa...

China to focus on steadying growth as PMI falls Posted: 30 May 2012 03:19 AM PDT A slump in bulk commodity prices and the purchasing managers index (PMI) in May have aggravated worries of a further decline in the Chinese economy, though economists disagree over whether key interes...

Green light given to airports in Sichuan, Yan'an Posted: 30 May 2012 03:15 AM PDT After approving the construction of four civil airports in April, China's National Development and Reform Commission gave the green light to two more airports in May, according to the First Financial ...

Taiwan to consider fitting cruise missiles on warships Posted: 30 May 2012 03:11 AM PDT Taiwan's Ministry of Defense said Tuesday it will mull the possibility of fitting indigenous cruise missiles on the warships the country plans to build domestically, one day after lawmakers passed a p...

Hospital for illegal kidney trade found in Hangzhou Posted: 30 May 2012 02:55 AM PDT Several Chinese newspapers reported May 29 that an illegal hospital sold kidneys in Hangzhou, while more than 30 young men lived there and waited to sell a kidney in return for cash. A netizen post...

China Investment Corp to invest large sum in Alibaba: report Posted: 30 May 2012 01:47 AM PDT A Chinese media report said sovereign wealth fund China Investment Corp will buy Yahoo's stake in Alibaba for US$2 billion, because of Alibaba's financial incapacity to repurchase it on its own from t...

China's catering sales booming Posted: 30 May 2012 01:47 AM PDT The annual sales of China's catering industry is expected to reach 3.7 trillion yuan (US$587.3 billion) by 2015, the nation's vice minister of commerce told the first Beijing International Fair for Tr...

Beijing seeks to register all foreign residents Posted: 30 May 2012 01:47 AM PDT Beijing has adopted a set of measures to make it easier for foreign nationals to obtain resident permits, sources with the city's police said Monday. According to Chinese law, foreigners living in ...

Taobao reveals fashion habits of China's women Posted: 30 May 2012 01:47 AM PDT Chinese online shopping website Taobao has published a series of images to describe the shopping habits of women in major cities. The images were based on its transactions from November last year ...