{"id":562,"date":"2013-03-05T15:44:24","date_gmt":"2013-03-21T20:17:00","guid":{"rendered":"http:\/\/shehuizhuyizhe.com\/?p=562"},"modified":"2013-08-23T08:54:54","modified_gmt":"2013-08-23T08:54:54","slug":"chinas-npc-worlds-wealthiest-parliament-meets-in-beijing","status":"publish","type":"post","link":"https:\/\/chinaworker.info\/en\/2013\/03\/05\/562\/","title":{"rendered":"China\u2019s NPC: World\u2019s wealthiest \u2018parliament\u2019 meets in Beijing"},"content":{"rendered":"

CCP leader Xi Jinping three times wealthier than the whole British cabinet<\/strong><\/p>\n

Vincent Kolo<\/p>\n

On March 5, the world\u2019s wealthiest-by-far political assemblies will open for business in Beijing. The annual sessions of the NPC and it\u2019s sister body CPPCC are met with a big yawn by most Chinese. News media report that almost 800,000 Chinese voted in an online poll over what topics the (unelected) delegates should address. This is hardly a sign of popular interest \u2013 at just 0.0006 percent of the population, and less than one percent of the Communist Party\u2019s (CCP) 83 million members!<\/p>\n

The annual meetings are however a firm favourite with bloggers who post popular pictures of the designer outfits and other luxury adornments that give some clues as to the fabulous wealth of the assembled delegates.<\/p>\n

\u201cChina\u2019s legislature, called the National People\u2019s Congress, may boast more very rich members than any other such body on earth,\u201d declared a recent survey by the Wall Street Journal (Defying Mao, Rich Chinese Crash the Communist Party<\/em><\/a>, December 29, 2012).<\/p>\n

Among the NPC\u2019s 3,000 delegates there are 75 billionaires with an average net worth of more than US$1 billion. Their combined wealth exceeds US$90 billion.<\/p>\n

\u201cBy comparison, the collective wealth of all 535 members of the US Congress was between $1.8 billion and $6.5 billion in 2010,\u201d the Journal\u2019s report continued.<\/p>\n

\"Seven<\/a>
Seven of the wealthiest billionaires took part in the 18th Congress of the CCP<\/figcaption><\/figure>\n

The staggering wealth of China\u2019s political and business elite has become a major focus for the world\u2019s media. The Financial Times anointed 2012 as \u201cthe year of the princeling\u201d. This newspaper and other business journals have carried extensive reports on China\u2019s princelings \u2013 the children and grandchildren of Mao-era leaders.<\/p>\n

For the first time in its history, following its 18th congress in November, the top leadership of the CCP is dominated by princelings. Within the standing committee of the politburo \u2013 the fulcrum of power within the Chinese dictatorship \u2013 four of seven members are now princelings. They are headed by the new party secretary Xi Jinping, whose father Xi Zhongxun served Mao as vice premier before being purged and imprisoned during the Cultural Revolution.<\/p>\n

This apparent consolidation of control by prominent princelings is one outcome of a sharp top-level power struggle, which is far from concluded. While Xi seems to have wrested more control within the ruling organs than his predecessor Hu Jintao, his regime is not yet consolidated and faces internal as well as external challenges. Although himself a princeling, Xi is attempting to balance between rival CCP factions. He has increasingly distanced himself from the main princeling faction led by former president Jiang Zemin, leaning for support on its main rival, the Youth League faction (tuanpai<\/em>).<\/p>\n

The princelings are not a cohesive political faction, but rather a specific social group within China\u2019s billionaire elite, the \u2018new capitalist nobility\u2019 as Bloomberg describes them. Elite family connections have enabled this group to reap spectacular gains from China\u2019s growing financial power as the world\u2019s second-largest economy, second-largest creditor nation and now largest trading nation.<\/p>\n

Wealth gap<\/strong><\/p>\n

The rise of the princelings is an expression of the social shake-up and transformation in China after more than 30 years of pro-capitalist \u2018reform and opening\u2019. The wealth gap in China has reached \u2013 and breached \u2013 crisis levels. After a 12-year silence, the Chinese regime this year published figures for the Gini coefficient \u2013 a widely used indicator of inequality. Its claim that the coefficient has fallen from 0.491 in 2008, to 0.474 last year, has aroused widespread scepticism. Even this suspiciously low reading would indicate China is far more unequal than the US (0.378).<\/p>\n

But a separate study published recently by state agencies including the central bank produced a coefficient of 0.61 for 2010, which places China among the ten most unequal societies in the world.\u00a0 Sensing volcanic social tremors, the new CCP leaders have pledged measures to close the wealth gap. But so did their predecessors, president Hu and his premier, Wen Jiabao. Ten years ago they also pledged a change of political direction and gave it an appealing name: \u201cPutting people first\u201d. In reality, this should have read, \u201cPutting some people first!\u201d<\/p>\n

When Hu and Wen assumed office there was not a single dollar billionaire in China. Today there are 251, more than any country apart from the US. There are a further 2.7 million millionaires (measured in US dollars) among whom, according to the Shanghai-based Hurun report 85 percent said they send their children overseas to study. So, while defending an authoritarian system at home in order to maintain \u2018stability\u2019 and generate profits, the super-rich in China are strikingly cosmopolitan in their personal tastes, availing themselves of the benefits of \u2018democratic\u2019 systems abroad.<\/p>\n

\u201cTo avoid the rise of Russian-style oligarchs, China opted for a party-led oligarchy,\u201d explains author James McGregor, a former chairman of the American Chamber of Commerce in China. Rather than the party \u2018leading\u2019 the princelings, however, as the outcome of the 18th congress demonstrates, it is increasingly the princelings that rule the party.<\/p>\n

World\u2019s wealthiest \u2018parliament\u2019<\/strong><\/p>\n

As we have seen, the rise of a super-rich elite is reflected in the composition of the institutions of the Chinese dictatorship, including the CCP. \u201cMembers of China\u2019s National People\u2019s Congress have become so wealthy that their meetings may best take place in a bank vault,\u201d says McGregor.<\/p>\n

Of China\u2019s wealthiest 1,024 people, the Wall Street Journal reported 160 were either delegates to the CCP\u2019s 18th Congress, the NPC, or the CPPCC.<\/p>\n

\u201cThe CPPCC is becoming more like a Chinese version the UK\u2019s House of Lords \u2013 weaker than the British version but richer,\u201d it noted. Among its 2,200 members, the CPPCC boasts 74 billionaires with an average net worth of US$1.45 billion each.<\/p>\n

In Britain, media reports last year that 18 of 29 members of the government (or Cabinet) are millionaires caused a sensation and heightened anger against that government\u2019s savage austerity programme. As the Daily Mirror (29 May 2012) noted, the \u201ccombined wealth of the Cabinet is more than \u00a370million [US$108 million].\u201d Yet compared with their Chinese counterparts such sums are chicken feed. Xi Jinping\u2019s family alone, according to Bloomberg\u2019s analysis, is worth US$376 million \u2013 three times more than the entire British government!<\/p>\n

The Wall Street Journal\u2019s survey comments that, \u201cAs political [i.e. CCP-connected] families move into business, private tycoons are entering the political sphere \u2013 although precisely what is driving that isn\u2019t clear.\u201d
\nThen answering its own question, this article continues:
\n\u201cBut the Journal\u2019s analysis showed that people appearing on Hurun\u2019s rich list who also served in the legislature increased their wealth more quickly than the average member of the list. Seventy-five people who appeared on the rich list from 2007 to 2012 served in China\u2019s legislature during that period. Their fortunes grew by 81%, on average, during that period, according to Hurun. The 324 list members with no national political positions over that period saw their wealth grow by 47%, on average\u2026\u201d<\/p>\n

This graphically illustrates how the capitalists exploit their connections with the state \u2013 as CCP members or \u2018non-party\u2019 advisers \u2013 to benefit their companies, grab state contracts and cheap resources, and interface with the \u2018right people\u2019 in other sectors of the national economy. Textile billionaire Zhang Haijing, who features in the WSJ report, boasts no less than ten government positions! Zhang\u2019s US$1.3 billion business was coincidentally (!) the first private company to get approval for a banking arm, and also received government support for its sweatshop expansion into Cambodia. Today there are even consultancy firms marketing \u2018five year plans\u2019 to help businessmen obtain promotion to government bodies such as the NPC and CPPCC.
\n
\n\u2018Eight Immortals\u2019<\/strong><\/p>\n

Reports in the foreign press, in some cases relying on leaked information from CCP factional insiders, have given further insights into the world of China\u2019s \u2018red aristocracy\u2019.<\/p>\n

\u201cThe longer you stay in China the more you realise that everything is controlled by a couple of hundred powerful families,\u201d one veteran foreign diplomat told the Financial Times.<\/p>\n

Bloomberg News, in an extensive report from December (Heirs of Mao\u2019s Comrades Rise as New Capitalist Nobility<\/a><\/em>) charts the fortunes of 103 children and grandchildren of the so-called \u2018Eight Immortals\u2019. This refers to Deng Xiaoping and seven other top leaders (Yang Shangkun, Li Yiannian, Peng Zhen, Chen Yun, Bo Yibo, Wang Zhen and Song Renqiong) who backed Deng\u2019s pro-capitalist policies from the 1980s onwards, and subsequently also his counter-revolutionary crackdown of June 4, 1989. These eight princeling clans are among the dominant political and financial families in the new China.<\/p>\n

From their ranks, 26 offspring were found to be running state-owned companies, while 43 operated their own businesses or became executives in private companies. Three were found to control state-owned companies with combined assets worth around US$1.6 trillion in 2011, or about a fifth of China\u2019s national output.<\/p>\n

\u201cAt least 18 of the Immortals\u2019 descendants own or run entities linked to companies registered offshore, including the British Virgin Islands and the Cayman Islands, as well as Liberia and other jurisdictions that offer secrecy,\u201d noted the Bloomberg report.<\/p>\n

Almost half the 103 descendants tracked by Bloomberg, \u201clived, studied or worked abroad\u201d. This included 23 who studied in the US, including three at Harvard and four at Stanford. The report mentions Citigroup and Morgan Stanley among the Wall Street banks that have hired Chinese princelings.\u00a0 \u201cAt least six [of the 103] worked for private equity and venture capital firms, which sometimes recruit princelings with the intention of using their connections for winning business.\u201d<\/p>\n

The case of Bo Xilai<\/strong><\/p>\n

The fall of Bo Xilai, a flamboyant princeling who sat on the 25-member politburo, exploded as a major international news event in 2012. Bo\u2019s case, and the choreographed murder trial of his wife and fellow princeling Gu Kailai threw a spotlight on the power and wealth of the princelings. Bo, whose trial could be imminent, now stands accused of corrupt practises spanning two decades, from Liaoning in the Northeast to Chongqing in the West.<\/p>\n

Bo\u2019s downfall triggered intense scrutiny abroad of his family\u2019s wealth, estimated to be at least $136 million. Again, the New York Times, Bloomberg and others have \u2018followed the money\u2019 \u2013 uncovering a maze of share holdings, real estate investments and company directorships inside and outside China, that involve Bo\u2019s brothers, Gu\u2019s sisters, and even his son by a previous marriage who landed a job with Citigroup in the US. But substantial as this is, the Bo clan\u2019s reported fortune is dwarfed by that of Xi\u2019s family and other prominent leaders. This includes premier Wen Jiabao, whose relatives have built a staggering US$2.7 billion financial empire according to research by the New York Times.<\/p>\n

Wen is a prominent representative of the non-princeling wing of the CCP, and has always laid great stress on his humble origins in order to cultivate a man-of-the-people image. His family\u2019s law firm threatened legal action against the New York Times over these highly damaging revelations, but this is almost certainly a bluff, given the even greater scrutiny that court proceedings would involve. Many believe Wen\u2019s factional opponents leaked this information as part of the internal CCP power struggle.<\/p>\n

\"Following<\/a>
Following the money trail of Wen Jiabao \u2013 montage from South China Morning Post<\/figcaption><\/figure>\n

Rather than corruption \u2013 a given among princelings and non-princeling CCP officials alike \u2013 Bo was brought down as a perceived \u2018loose cannon\u2019 who was ambitious, disdainful of the central leadership, and sought to promote his own brand of authoritarian populism, laced with Mao-era nostalgia. Despite the lack of substance in his \u2018leftist\u2019 phraseology, others in the CCP leadership saw this as a threat and moved to eliminate it. This was just one front in the wider CCP power struggle, which is rooted in China\u2019s explosive social contradictions after decades of pro-capitalist policies. These contradictions are bursting open the fa\u00e7ade of \u2018unity\u2019 at the top.<\/p>\n

Splits at the top can in turn trigger mass movements of China\u2019s oppressed masses, its legions of sweatshop workers and army of rural poor. The leadership handover to be rubber-stamped at the NPC\/CPPCC sessions means that Xi Jinping and the new autocratic team inherit a political time bomb from their predecessors.<\/p>\n","protected":false},"excerpt":{"rendered":"

CCP leader Xi Jinping three times wealthier than the whole British cabinet Vincent Kolo On March 5, the world\u2019s wealthiest-by-far political assemblies will open for business in Beijing. The annual sessions of the NPC and it\u2019s sister body CPPCC are met with a big yawn by most Chinese. News media report that almost 800,000 Chinese […]<\/p>\n","protected":false},"author":12,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[132,124],"tags":[112],"class_list":{"0":"post-562","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-china","7":"category-news","8":"tag-npc"},"yoast_head":"\nChina\u2019s NPC: World\u2019s wealthiest \u2018parliament\u2019 meets in Beijing - China Worker<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/chinaworker.info\/en\/2013\/03\/05\/562\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"China\u2019s NPC: World\u2019s wealthiest \u2018parliament\u2019 meets in Beijing - China Worker\" \/>\n<meta property=\"og:description\" content=\"CCP leader Xi Jinping three times wealthier than the whole British cabinet Vincent Kolo On March 5, the world\u2019s wealthiest-by-far political assemblies will open for business in Beijing. 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The annual sessions of the NPC and it\u2019s sister body CPPCC are met with a big yawn by most Chinese. 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