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以下為英文版
Unanswered Questions by Premier Wen』s Family
The author of this article is Kaibin Xu, an Assistant Professor in the School of Media and Communication,Temple University, Philadelphia, PA, USA
Mr. Hong Lei, a spokesperson for the Chinese Foreign Ministry, claimed that The New York Times report on the family of the Chinese premier Wen Jiabao 「smears China and has ulterior motives.」 The New York Times recently published an article documenting how the relatives of Mr. Wen have amassed assets worth at least $2.7 billion. Entrusted by Yunsong Wen (English name Winston Wen), the son of the premier, two attorneys in Beijing have released a statement regarding this report.
Even so, there are a series of questions that remain unanswered by the Chinese government and the premier』s family.
First, The New York Times story provides clear evidence about how Mr. Wen』s relatives obtained their assets. Before an investigation is launched, how could the Chinese government claim, on the same day when the report was published, that the story is false? After all, the Chinese government does not deny the existence or authenticity of the evidence.
Second, when the spokesperson for the Chinese Foreign Ministry says that The New York Times report 「smears China,」 he appears to be assuming that criticizing Mr. Wen means smearing China, and that Mr. Wen is equivalent to China. Such logic is obviously problematic. Shall we say, for example, that criticizing Mr. Obama is equivalent to 「smearing the United States?」
Third, the statement issued by Mr. Wen』s family is too vague and does not address the real issues covered by The New York Times. For example, the statement claims, 「Some of Wen Jiabao』s family members have not engaged in business activities. Some were engaged in business activities, but they did not carry out any illegal business activity. They do not hold shares of any companies.」 The New York Times has neither claimed that all of Wen family members had engaged in business, nor that they had engaged in illegal business. The story just reported the business activities of Mr. Wen』s relatives. The story, however, does mention that according to corporate records, one investment, which was in the name of the premier』s mother, had a value of $120 million five years ago. While the statement claims the family members 「do not hold shares of any companies,」 the use of the present tense for the verb (「do not hold」) means that it tells only about the current situation – they do not hold shares at present; it does not deny what The New York Times report says – Mr』s Wen』s mother and other relatives held a vast amount of Ping An shares 5 years ago. Also, is the statement assuming that Mr. Wen』s mother is not his family member? The statement should have, but did not, answer these questions.
Fourth, for years, there have been many speculations about the relationship between the insurance company Ping An and the premier』s wife, prior to release of The New York Times story. The New York Times disclosed that Taihong Company was the investment vehicle for the Ping An shares held by the premier』s mother and other relatives. Duan Weihong, the boss of Taihong, claimed that the shares were her own, and that she had used others』 IDs to register for her own shares in Ping An 「in order to conceal the size of her shares.」 She also said that she did not know that the IDs belonged to the relatives of the premier, and it is 「by accident」 that she chose them through her own relatives. It would be difficult for people to believe this explanation. Since Duan Weihong said that she has known the premier』s wife since 2000, how can she not know the names of the premier』s close relatives? How can an average person have access to the IDs of the premier』s relatives? Even if we believe what Ms. Duan says, this also shows that the relatives of the premier knew their IDs had been used to purchase the shares of Ping An because their signatures are required. However, it is illegal to lend one』s ID to others, and also illegal to use others』 IDs to register for one』s own shares, according to the Chinese laws. Who else, if not Mr. Wen』s family, can lead the premier』s mother to do such illegal things? In addition, as some netizens pointed out, Duan Weihong』s claim is contradicted by the age of Premier Wen』s mother: when Ping An was listed on China』s domestic stock market in 2007, the old lady was already 85, and people of this age can die at any time. If she died suddenly, the shares under her name will become the heritage of her family. How can those who borrow her ID get their money back? Who is so silly to do such things? Thus, it is certain that Duan Weihong lied.
Fifth, although Mr. Wen』s family did not engage in illegal business, it is a violation of the Party』s disciplinary rules for them to engage in business activities. Since the late 1980s, the Chinese government has had Party rules prohibiting the family members of senior officials from engaging in business and setting up enterprises within the region and the subject-matter scope of their jurisdiction. In March 1997, the Party released the 「Chinese Communist Party Several Principles on Clean Administration of Government by Party Member Leading Cadres (for Trial Implementation)」. Article 5 states:
The spouse, children, and spouses of children of leading cadres at or above the level of province (ministry) may not personally engage in business, set up enterprises or work in a fully foreign-owned enterprise within the region and the subject-matter scope of that leading cadre』s jurisdiction.」
In September the same year, the Party issued the 「Chinese Communist Party Several Principles on Clean Administration of Government by Party Member Leading Cadres (Implementing Measures)」. The enforcement measure regarding the above-mentioned principle is in Article 31:
If the spouse, children, and spouses of children of leading cadres at or above the level of province (ministry) are personally engaging in business, setting up enterprises or working in a wholly foreign-owned enterprise within the region and the subject-matter scope of that leading cadre』s jurisdiction, the leading cadres should require the spouse, children, and spouses of children to stop doing the forbidden things within a limited time period. If the leading cadres fail to get them to stop, then resign or ask for a re-assignment. At the same time, the matter should be handled in accordance with Article 88 of the Party』s Regulations on Disciplinary Punishments.
Since Mr. Wen is the premier, all of China falls within his geographical jurisdiction, and all areas of business are within the scope of his subject-matter jurisdiction, as well. This means that his family members cannot personally engage in any business in China. However, public corporate records show that his son founded a private Internet data services company called Unihub Global Network in 2000, and established a lucrative private equity firm New Horizon Capital in 2005, which has become one of China』s top 3 private equity firms and has brought him huge earnings.
For example, it has been widely reported by the Chinese media that, through an investment of 75 million yuan ($12 million) in a wind energy company called Huarui Wind Energy （華銳風電）in 2008, the value of the shares held by New Horizon Capital in this company reached 10.8 billion yuan ($1.6 billion), or 145 times its investment amount, in January 2011, when the energy company was listed in the stock market. Although he left New Horizon Capital and joined the state-owned China Aerospace Science and Technology Group in 2010 in order to avoid arousing suspicion, he still has a vast investment in New Horizon Capital.
Obviously, these business activities occurred after the 「Chinese Communist Party Several Principles on Clean Administration of Government by Party Member Leading Cadres (for Trial Implementation)」 and the 「Chinese Communist Party Several Principles on Clean Administration of Government by Party Member Leading Cadres (Implementing Measures)」 were in effect. His father, a vice premier first (1998-2003) and then the premier (2003-current), failed to stop his son』s business, and did not resign or ask for a re-assignment as well between 2000 and 2010, as required by Party disciplinary rules.
Finally, the statement of the premier』s family claimed that 「Wen Jiabao has never played any role in the business activities of his family members, still less has he allowed his family members』 business activities to have any influence on his formulation and execution of policies.」 The New York Times article did not say that the premier personally intervened to get preferential treatment for his family members』 investments. The article just pointed out that 「as prime minister in a country where the state plays a large role in the economy, Mr. Wen oversaw many government officials whose decisions could play a large role in the fortunes of businesses and investors.」 This, of course, is true, given nepotism is prevalent in China, and this is the main reason that the Party prevents the family members of senior officials from engaging in business. If the premier』s family members engage in business, it is certainly unnecessary for Mr. Wen, such a high-rank government official, to say anything for his family, but government officials and rich business people will know how to please his family.
It is in this context that many Chinese have often talked about the investment of New Horizon Capital, especially in the above-mentioned Huarui Wind Energy Company （華銳風電）and the enormous earnings. The premier has visited Huarui Wind Energy Company on September 7, 2007 (the visit was documented by the China Wind Energy Association in the 「Major Events in China』s Wind Energy for 2007」), and New Horizon Capital』s investment in Huarui Wind Energy Company was carried out in March 2008. In addition, New Horizon Capital invested $4.5 million in Goldwind Science and Technology （金風科技）in December 2006; the premier visited this company on August 19, 2007 (also documented in the 「Major Events in China』s Wind Energy for 2007」). In December the same year when Goldwind was listed on the stock market, New Horizon Capital exited successfully with earnings of 324 million yuan. There may not exist a direct link between these events, but people have reasons to worry.
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