Remembering Robert Weil: Intellectual and Political Activist

Robert Emil Weil Obituary

Robert Weil, 1940-2014

by Swapna Banerjee-Guha

Red Cat, White Cat: China and the Contradictions of Market Socialism

Robert Weil, author of the powerful critique of Deng Xiaoping’s “reforms” entitled Red Cat, White Cat: China and the Contradictions of Market Socialism (New York: Monthly Review Press, 1996, republished in India by Cornerstone Publications, Kharagpur), quietly passed away in California on 12 March 2014.  Almost a year after, on 15 February 2015 a memorial meeting was held in Santa Cruz, California at the Resource Center for Nonviolence where his family, friends, teachers and long-time comrades from near and far came together to share their memories.  Robert meant a lot to them and for many others across the globe, a true friend, a dear comrade whose political integrity, a rare characteristic in the current milieu, they value immensely, a committed activist and intellectual whose life they considered worthy on all counts particularly while imagining a better world.  Starting off as a student-activist at Harvard University in the late 1950s, right till his last days Robert Weil remained involved in solidarity work with oppressed people around the world.  Even in the face of indifferent health, he did not think twice to join such efforts.  His democratic values in pursuing left politics will remain an example to many for years to come. Continue reading

Solidarity Statement from Hong Kong to Black Communities in the US

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Hong Kong…. Ferguson and New York City!

Solidarity Statement with Black Communities in Ferguson, Missouri and NYC

From Hong Kong to Ferguson and NYC, we send you our warmest solidarity!

No to injustice! No to white supremacy!

It was outrageous that the grand jury failed to indict Darren Wilson, who had shot unarmed 18-year old Mike Brown. We agree with you that: “The whole damn system is guilty as hell.”

It was even more outrageous, that after that, Eric Garner’s case also failed to be indicted!

How can anyone trust the justice system, when the police can shoot you dead while unarmed, before you even reach a court? And when a man is killed by a policeman using an illegal chokehold, recorded on video but the policeman is still not even indicted?

All the common sense evidence points to systematic bias, within the police, within the courts and within government. How can democracy exist when these state institutions of courts and law enforcement are ridden with injustice? It is clear to us that genuine democratic governance does not exist in American society.

In Ferguson, the jarring truth of racism and injustice explode with the case of Michael Brown, generating collective outrage against this system that produces these problems. We all know he is sadly, only one of many casualties of racist America.

We are aware that Black and poor communities in America face state violence, not only in the form of police shootings. It manifests in other aspects of your lives: unemployment, racist welfare laws, disproportionate policing, housing segregation, and health disparities.
We recognize that the police are not taking responsibility for your safety. Instead, not only do they squash dissent and free expression, they are sending in military ammunition into the streets of Ferguson. It seems that the US government and the police forces in your country are willing to use aspects of the military violence they have imposed on the people of Iraq and Afghanistan, on to you.

Continue reading

Hong Kong: an anatomy of the revolt

[The Hong Kong revolt is a reform movement, not a revolution, and it has been sustained by its unmistakeable mass character.  Those who claim, disingenuously, that it is triggered by foreign forces a la “Orange Revolution” or even some kind of revanchist reassertion of British colonialism are inventing a false picture while denying the class character of the revolt, the class character of Chinese capitalist-imperialism, and the class character of Hong Kong.  The people have legitimate grievances, which are currently shaped and constrained by reformist leaders and by the lack of revolutionary leadership. This revolt will not be the trigger, today, for China-wide revolts against the capitalist regime in Beijing, though those revolts, especially by displaced peasants and massively exploited workers, are widespread and continuously growing against the counter-revolutionary post-Mao capitalist rule.  The people of Hong Kong should be supported by internationalists, anti-imperialists, revolutionary proletarians, and democratic activists.  The following detailed and lengthy reformist-focused article by Lawrence Wong examines the HK revolt and the conditions which gave rise to it — and its chances for “successful reform”.  What the article does not address are the ways the struggles of today will congeal into revolutionary forces and strategies in the future.  —  Frontlines ed.]

October 6, 2014

by Lawrence Wong | Counterfire | Opinion

Protestor

A protester (centre) raises his umbrellas in front of tear gas which was fired by riot police to disperse protesters blocking the main street to the financial Central district outside the government headquarters in Hong Kong, on Sept 28, 2014. — PHOTO: REUTERS

Lawrence Wong looks at the background, and prospects, for Hong Kong’s ‘Umbrella Revolution’

The scale, the size, and the vitality of the ‘umbrella’ revolution took every person, including the Hong Kong people themselves, by surprise. However, this does not mean that the protests and campaigns of civil disobedience were without precedent in the territory of Hong Kong.

The previous Chief Executive Tung Chee Wah was deposed through a mass campaign in 2003.There have been strikes, a notable docker’s strike, a threat to strike by Cathay Pacific cabin crew, a successful campaign against the change in the secondary school curriculum, and the recent mock plebiscite where 800,00 Hong Kong people voted for genuine democracy.

Every year, Hong Kong people come out, sometimes in tens of thousands and sometimes in hundreds of thousands, around June 4th to commemorate and to remember the fallen when Chinese people last stormed the gates of heaven twenty five years ago. Most of these protests have been successful, and have taken place in the ‘consultative’ period, prior to decisions being made. The mobilisations of Occupy Central, the mock plebiscite, the magnificent 500,000 demonstration on June 1 which was the closest Sunday to June 4th, took place within this by and large successful experience of struggle by Hong Kong people since 1997. Continue reading

Hong Kong’s Leader: “Poor People Would Ruin Elections”

[The ongoing protests in Hong Kong continue in waves of intensity, as the protest struggles for greater organized strength and programmatic unity, and as supporters of the Hong Kong Chief Executive C.Y.Leung (a wealthy capitalist closely supported by the restored-capitalist/imperialist Beijing regime) continue to denounce the protests as a US/British plot.  How it will develop, what changes it may bring, is yet to be seen.  But in the meantime, C.Y. Leung who opposes the protester’s demand for more inclusive electoral reform, has let an underlying and unspoken issue come to the surface:  the question of class, of bourgeois rule, and the role of the poor.  While elections cannot solve the problem of capitalist ownership of the state, classes and class struggle cannot be hidden from any major political dispute between state powers and the resistance of the masses.. —  Frontlines ed.]

As protests continue in the crowded city of Hong Kong, thousands of immigrants and low-income families live in tiny subdivided units, unable to afford sky-high rents. Meanwhile, leader Leung Chun-ying lives a lavish lifestyle in an upscale community.

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Hong Kong Chief Executive C.Y. Leung, as police march past

Leung proved today that he is not a “man of the people”. Instead, he came off as an elitist out of touch with the realities of living in Hong Kong.

He said that open elections shouldn’t happen because “many poor” might end up dominating politics.

Leung gave the interview to the Financial Times, The New York Times, and the Wall Street Journal and reiterated his position that free elections were impossible:

“If it’s entirely a numbers game—numeric representation—then obviously you’d be talking to half the people in Hong Kong [that] earn less than US$1,800 a month. You would end up with that kind of politics and policies.”

Leung made millions in real estate and has the nickname “emperor of the working class.” Already he has been hung in effigy, depicted as Dracula, and openly told to go to hell during the protests in Hong Kong. Continue reading

Has the Left Libeled a Democracy Movement in Hong Kong?

[Since the rise of capitalism, it has been common for capitalist powers and allied-capitalist partners to blame internal protests, rebellions, and class struggles on external forces, always seeking to turn attention away from the miserable conditions created in those societies.  And in more recent times, imperialists (and “anti-imperialists” who only oppose one side of competing imperialists) blame the instability in opposing camps on external meddling by the opposite number, whereas the meddlers usually come from all sides in proxy wars today, trying to exploit the ever-emerging resistance of oppressed and exploited people.

Today, the popular opposition in Hong Kong, which has never experienced “self-determination” (since their emergence from British colonial rule was at a time when only the arms of restored and exploitive Chinese capitalism were waiting to greet, and restrain,  them–in a kind of formally-internal but neo-colonial comprador-relation) has brought unprecedented numbers into the streets.

Russia’s Putin, aligned with the Chinese capitalist-imperialist regime, is blaming the Hong Kong opposition on US meddling.  Now various confused “left” forces will quote each other and support Putin’s view, and will try to make it appear that Chinese capitalist-imperialists are the victims of the US.   And these new anti-US conspiratorial spinners have even claimed that the use of umbrellas in defense from pepper spray, and the use of cellphone social networking, are beyond the skills and imagination of Hong Kong youth, so they must have been instructed by the CIA!  And while the US is undoubtedly encouraging its friends in Hong Kong, there is no evidence that they started this popular rebellion, or are shaping, leading, or controlling it in any way.  See the following article by Dave Lindorff for another view on these rebellions.

Today, it is said that the protests are winding down.  Perhaps, but it may be just getting a second wind, or summing things up in preparation for the next round of struggle.  But the bottom line is, as Mao (whom China’s current rulers have worked to censor and turn into an empty icon) has said, “Wherever there is oppression, there follows resistance.”  Support the struggles of the people of Hong Kong!  —  Frontlines ed.]

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Has the Left Libeled a Democracy Movement?
What’s Driving the Hong Kong Protests
by DAVE LINDORFF, CounterPunch, OCTOBER 06, 2014

A number of progressive and left-leaning writers in the US have jumped on a report by Wikileaks that the neo-con dominated National Endowment for Democracy (NED) and various other US-government linked organizations with a history of subversion and sowing discord abroad are operating in Hong Kong and on that basis are making the leap of “logic” that the democracy protests in Hong Kong must therefore be a creation of US policy-makers.

Riot police use pepper spray as they clash with protesters outside the government headquarters in Hong Kong

Protesters take cover from pepper spray with umbrellas as riot police clash with tens ofthousands of protesters blocking the main street leading to the financial Central district outside the government headquarters in Hong Kong September 28, 2014.(Reuters / Bobby Yip)

As a progressive, Chinese-fluent journalist who has spent years working in China and especially Hong Kong, and who has spent decades exposing the secret workings of US agencies and their network of fake NGOs in support of US empire, as well as their anti-democratic activities here in the US, I can understand why people might be suspicious, but I want to explain that Hong Kong is not Ukraine or even Venezuela or Brazil.

 

Continue reading

China: 27 villagers detained after land-grab protests in Shantou

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At least 1,000 villagers from Liantang village in Guangdong protested outside the city government’s office building on Friday

He Huifeng, South China Morning PostMonday, 29 September, 2014

At least 27 villagers in Shantou, Guangdong were detained by police on Saturday for allegedly inciting a two-day protest over the sale of their land and corruption.

Thousands of villagers from Liantang village clashed with hundreds of police and government officials on Friday and Saturday in front of the Shantou municipal government building.

They said village officials had sold their collective land and never shared the profits with villagers. The demonstrations ended on Saturday night and local public security officers took away 27 people on suspicion of spreading rumours or disturbing public order and causing trouble.
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China: “Dehui poultry plant fire: Locked exits ‘blocked escape'”

Photo taken on June 3, 2013 show the burnt poultry slaughterhouse owned by the Jilin Baoyuanfeng Poultry Company in Mishazi Township of Dehui City in northeast China’s Jilin Province. The death toll from the fire has risen to 119 as of 8 p.m. on Monday. Search and rescue work is under way. (Xinhua/Wang Hao Fei)

Photo taken on June 3, 2013 show the burnt poultry slaughterhouse owned by the Jilin Baoyuanfeng Poultry Company in Mishazi Township of Dehui City in northeast China’s Jilin Province. The death toll from the fire has risen to 119 as of 8 p.m. on Monday. Search and rescue work is under way. (Xinhua/Wang Hao Fei)

3 June 2013

Survivors told state TV how they escaped from the blaze

A fire at a poultry processing plant in China has killed at least 119 people, officials say.

The fire broke out at a slaughterhouse in Dehui in Jilin province early on Monday.

Accounts speak of explosions prior to the fire, which caused panic and a crush of workers trying to escape. Most exits were said to be locked.

A labour activist told the BBC it was the worst factory fire in living memory.

The fire is now said to have been mostly put out and bodies are being recovered.

President Xi Jinping, who is on a visit to the Americas, ordered every effort to go into the rescue operation and treatment of survivors, adding that the investigation into the cause of the accident would be vigorous.  Sources including the provincial fire department suggest there may have been an ammonia leak which either caused the fire or made fighting the blaze more hazardous.

Fo132428218_11notage from inside the plant shows burning embers and piles of ash, as Damian Grammaticas reports.

Other reports speak of an electrical fault.

It is China’s deadliest fire since 2000, when 309 people died in a blaze in a dance hall in Luoyang, in Henan province.

About 100 workers had managed to escape from the Baoyuan plant, Xinhua said, adding that the “complicated interior structure” of the building and narrow exits had made rescue work more difficult.

It said the plant’s front gate was locked when the blaze began, and other official media reports said there was only one unlocked door in the whole building.

Firefighters have still not completed the job of recovering bodies from the building, meaning the death toll may rise yet further, say correspondents.

Some 60 injured people have been sent to hospital, but the severity of their injuries remains unclear. State media quoted hospital staff as saying that some wounded were being treated for inhalation of toxic gases such as ammonia while others had burns of varying degrees. Continue reading

China: 30 Years of Capitalism-Restored Brings Toxic Harvest of Displacement for Millions

Cancer victim faces China land battle

The demolished site where Yao Baohua's house still stands, in the city of Changzhou, on March 13, 2013 (AFP, Peter Parks)

The demolished site where Yao Baohua’s house still stands, in the city of Changzhou, on March 13, 2013 (AFP, Peter Parks)

The Yao home is the last one standing in the rubble of a vast development site in Changzhou, a Chinese “nail house”, the moniker earned for both their physical appearance and their owners’ stubborn resistance.

The former mathematics teacher is one of the few to make a stand against the devastating side effects of China’s breakneck urbanisation, which can see entire villages uprooted to make way for industry and housing developments — often with the help of corrupt officials and police.

“Everyone else has gone, fight by fight, tear by tear,” said the 75-year-old, breathing heavily in a bed at Changzhou People’s Number Two hospital, recovering from an operation on a stomach tumour.

“But I will never give up. It is an illegal development,” he added, raising his fists defiantly as aggressive security staff forced out his visitors.

Yao’s plight is typical of disputes over land expropriation that China’s then premier Wen Jiabao said last year “are still very serious and the people are still very concerned about them”.

China has passed a series of regulations in recent years to protect land rights, including outlawing the use of violence during evictions and stipulating market rate compensation must be paid to relocated residents.

But local officials often ignore the rules, say researchers and campaigners. Continue reading

Mao and the new Chinese leadership

In 1976, China was the most equal society in the world while today, it is led by billionaires

by Hukum B Singh, eKantipur.com (Nepal), April 11, 2013

After the successful power transition in China,  Xi Jinping is now formally in charge of the Communist Party of China, the Government of China and its formidable military wing. However, there are big challenges ahead for Xi.

Mao, the founding father of modern China and the Chinese communist party, is still popular in China but the present leadership is fast moving away from his thought. The life and work of Mao is an inspiration to the poor, oppressed people in many parts of the world, including present China. That is why capitalists in China and their followers hate the memory of Mao and do everything they can to denigrate the great revolutionary leader. In Nepal and India, millions of workers and peasants are in favour of Maoism. Mao’s conception of a people’s war is being applied by the Communist Party of India (Maoist), which is leading an armed insurrection in many parts of India.

As it becomes clearer that capitalism—the oppressive system under which we live—is in decline, capitalists and those who serve them are becoming more desperate to convince us that no alternative, especially socialism, is possible. Hence, capitalist roaders in China and rest of the world have been attacking Mao’s revolution of China.

A century ago, when Mao was young, the once great civilisation of China had been reduced by internal reactionaries and external imperialists to a state of disorder and destitution. Mao was a young Chinese determined to find a way to save China and turn it into a prosperous, modern society. It was the Communist Party of China, eventually led by Mao, which found the way forward leading to the defeat of internal and external enemies and the foundation of the People’s Republic in 1949. In China today, Mao is widely respected and revered for the leading role he played in this great revolutionary struggle. Continue reading

Worker strikes in China ‘too common to suppress’

21 February 2013

By Daniel Hurst, National Times

Chinese workers are now launching too many strikes and protests for authorities to suppress, according to a union dissident visiting Australia.

Chinese dissident Han Dongfang, who was expelled from the country 20 years ago, told the Australian Workers’ Union conference on the Gold Coast the new generation of Chinese workers were better educated and aspirational than their parents and no longer willing to accept exploitation.

He spoke of the 2010 strike at the Honda plant in Nanhai that secured 24 per cent pay rise and a promise of democratic union elections. Meanwhile, employees at a state-owned oil firm in the Maoist heartland of Yan’an staged protests and demanded talks with management after a push to cut job security and benefits.

Han Dongfang, who founded China’s first independent trade union during the Tiananmen Square protests of 1989, said many people may ask themselves why the Chinese government had allowed the workers’ movement to develop to the point where even state-owned enterprises had to listen to their employees.

But he said there were now simply too many strikes and worker protests to suppress. Continue reading

China in Revolt

[This essay from Jacobin magazine traces the trajectory of recent working class struggle in China.  It draws on many unknown examples, and for that reason Frontlines posts this material for our readers.  The analysis and conclusions drawn by the author are his own. — Frontlines ed.]

Few in the West are aware of the drama unfolding in today’s “epicenter of global labor unrest.” A scholar of China exposes its tumultuous labor politics and their lessons for the Left.

Workers on strike blocking the entrance gate of Hi-P International factory yell slogans during a protest in Shanghai Dec 2. Labor actions in the country are increasing. REUTERS photo

At the same time, Chinese workers are depicted as the pitiable victims of globalization, the guilty conscience of First World consumers. Passive and exploited toilers, they suffer stoically for our iPhones and bathtowels. And only we can save them, by absorbing their torrent of exports, or campaigning benevolently for their humane treatment at the hands of “our” multinationals.

For parts of the rich-world left, the moral of these opposing narratives is that here, in our own societies, labor resistance is consigned to history’s dustbin. Such resistance is, first of all, perverse and decadent. What entitles pampered Northern workers, with their “First World problems,” to make material demands on a system that already offers them such abundance furnished by the wretched of the earth? And in any case, resistance against so formidable a competitive threat must surely be futile.

By depicting Chinese workers as Others – as abject subalterns or competitive antagonists – this tableau wildly miscasts the reality of labor in today’s China. Far from triumphant victors, Chinese workers are facing the same brutal competitive pressures as workers in the West, often at the hands of the same capitalists. More importantly, it is hardly their stoicism that distinguishes them from us.

Today, the Chinese working class is fighting. More than thirty years into the Communist Party’s project of market reform, China is undeniably the epicenter of global labor unrest. While there are no official statistics, it is certain that thousands, if not tens of thousands, of strikes take place each year. All of them are wildcat strikes – there is no such thing as a legal strike in China. So on a typical day anywhere from half a dozen to several dozen strikes are likely taking place. Continue reading

The Conditions of Migrant Workers in Shenzhen: A Discussion with a Rural Migrant Workers’ Rights Activist

by Shui Mui, China Left Review (Issue # 4) — (researcher, mainly focusing on migrant workers and labor-capital relations)

In March, 2009, I interviewed a Shenzhen based migrant workers’ rights activist. The interview helps us better comprehend the current conditions of migrant workers in China.

1. Workplace Injuries

A Hong Kong NGO put out a report (Arms and Legs), which discussed workplace injuries in China. At present in Shenzhen, many factories adopted new machinery equipped with infrared technologies, which could help prevent workers’ injuries. But that didn’t mean that older machinery left the Chinese scene altogether, it just moved inland. Still, Shenzhen’s rate of workplace injuries did not decrease, they only became more intense. Many 18-25 year old workers who just started working were injured in the first few days of work. This was because at many factories there was no training for newly hired workers.

Small factories owned by local investors are well below standard. When workplace injury related incidents occur, bosses frequently jump ship. Many workers’ injuries are not covered by regulations on the books that ensure workplace injury insurance. Electronics and shoe factories use a great amount of chemicals during production, without needed measures to prevent workplace poisoning. Smaller scale factories are especially weak in this area. Most of the workers in electronics factories are women, accounting for 70-80 percent of the workforce. Their work has a great impact on their reproductive systems, and the frequency of their falling ill is quite high. This is not only a problem for individual women workers, it also affects the next generation of offspring. One of the staff at University of Science and Engineering opened a battery factory where the majority of women workers fell ill to cadmium poisoning. One of these workers gave birth to an infant with a large black stripe on its body, which no one could explain. There have emerged many new chemicals used in factories are not covered by Chinese law. It’s estimate that in the next few years, rates of factory dust related lung disease will surge. This amounts to the end of the incubation period for diseases acquired since the process of economic liberalization began. Grinder’s disease, especially prevalent among miners, has already ended countless workers’ lives. Others with the disease are simply waiting to die.

Since the labor shortage that started in 2004, it should be noted that women workers are also finding it easier to secure jobs. Because women are regarded as more physically nimble, more obedient thanks to traditional culture in the countryside, much like previous generations of women workers in Korea, factory owners are predisposed to hiring them. Furthermore, if women workers look to fight for their rights, they typically have a much harder time than male counterparts. Continue reading

Chinese protesters force municipal government to back off from chemical plant plan

Living on Earth, 8 November, 2012

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[Chinese protesters, like the one pictured here, have had success recently in beating back industrial projects. (Photo by Josh Chin.)]

China’s efforts to grow its economy and its manufacturing base are meeting resistance as the country’s middle class burgeons. In Ningbo, a plan to build a petrochemical plant was beaten back by protesters in the street who say these plants are affecting their health.

Thousands of protesters took to the streets of Ningbo, China, recently in opposition to a petrochemical plant they feel is a danger to public health.

After three days of demonstrations, and clashes between protesters and the police, the government has called the project off — at least for now.

Ben Carlson, a journalist with the Global Post who lives in Hong Kong, said the protests started out as a series of smaller protests.

“By the time the weekend rolled around there were several thousand people in the streets,” he said. “There were reports of the protesters overturning cars, and the police arrested several of the demonstrators — that actually became one of the causes that people were demonstrating against later on.” Continue reading

China: Among protesters, “middle class” slated for ‘loyal opposition’ role

Successful pollution protest shows China takes careful line with rising middle class

GILLIAN WONG,  Associated Press
October 29, 2012

NINGBO, China — A victory by protesters against the expansion of a chemical plant proves the new rule in China: The authoritarian government is scared of middle-class rebellion and will give in if the demonstrators’ aims are limited and not openly political.

It’s far from a revolution. China’s nascent middle class, the product of the past decade’s economic boom, is looking for better government, not a different one. They’re especially concerned about issues like health, education and property values and often resist the growth-at-all-costs model Beijing has pushed.

PHOTO: Chinese police officers monitor residents gathered outside the city government office in Ningbo city in eastern China's Zhejiang province Monday, Oct. 29, 2012. After three days of protests by thousands of citizens over pollution fears, a local Chinese government relented and agreed that the petrochemical factory would not be expanded, only to see the protests persist. (AP Photo/Ng Han Guan)

[Chinese police officers monitor residents gathered outside the city government office in Ningbo city in eastern China’s Zhejiang province Monday, Oct. 29, 2012. After three days of protests by thousands of citizens over pollution fears, a local Chinese government relented and agreed that the petrochemical factory would not be expanded, only to see the protests persist. (AP Photo/Ng Han Guan)]

The past week’s chemical-plant protests reached an unruly crescendo over the weekend, when thousands of people marched through prosperous Ningbo city, clashing with police at times. The city government gave in Sunday and agreed to halt the plant’s expansion.

Even so, the protesters did not back down, staying outside city government offices hours after the concession. About 200 protesters, many of them retirees, returned Monday to make sure the government keeps its word on the oil and ethylene refinery run by a subsidiary of Sinopec, the state-owned petrochemical giant.

“In yesterday’s protest, the ordinary people let their voices be heard,” a 40-year-old businessman who would give only his surname, Bao, said on the protest line Monday. Government officials, he said, “should say they are completely canceling the project. They should state clearly that they will stop doing these projects in Ningbo and the rest of China.” Continue reading

“Shocking” disclosure of extreme wealth at pinnacle of capitalist China’s power elite

[While the socialist fig-leaf of China no longer has the power to confuse all who have watched, from near and from afar, the discarding of socialist  — peasant and workers’ — power for over three decades, the Western bourgeoisie have continued to slam the emergent exploitative and oppressive Chinese capitalist system as characteristic of “socialism” — in hopes that once overthrown, socialism will not rise again.  But all this exposure in the New York Times does, is describe a common feature of capitalist systems worldwide.  Such “investigative journalism” is a good example of “the pot calling the kettle black.” “If you live in a glass house, you should not throw stones at other glass houses.”  The bourgeois Chinese state, in response, has blocked access in China to the New York Times online, in hope, no doubt, that the tattered and shredded socialist fig-leaf  may yet be a useful cover.  But, to use another analogy, “the Emperor has no clothes” that serve to disguise the reality. — Frontlines ed.]

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October 25, 2012

Billions in Hidden Riches for Family of Chinese Leader

By

BEIJING — The mother of China’s prime minister was a schoolteacher in northern China. His father was ordered to tend pigs in one of Mao’s political campaigns. And during childhood, “my family was extremely poor,” the prime minister, Wen Jiabao, said in a speech last year.

But now 90, the prime minister’s mother, Yang Zhiyun, not only left poverty behind, she became outright rich, at least on paper, according to corporate and regulatory records. Just one investment in her name, in a large Chinese financial services company, had a value of $120 million five years ago, the records show.

The details of how Ms. Yang, a widow, accumulated such wealth are not known, or even if she was aware of the holdings in her name. But it happened after her son was elevated to China’s ruling elite, first in 1998 as vice prime minister and then five years later as prime minister.

Many relatives of Wen Jiabao, including his son, daughter, younger brother and brother-in-law, have become extraordinarily wealthy during his leadership, an investigation by The New York Times shows. A review of corporate and regulatory records indicates that the prime minister’s relatives — some of whom, including his wife, have a knack for aggressive deal making — have controlled assets worth at least $2.7 billion.

Deng Xiaoping, who led the new and resurgent capitalists to seize power from the working people of China after the death of Mao Zedong in 1976. He popularized the slogan promoting individual greed against social and collective advance: “To get rich is glorious!”

In many cases, the names of the relatives have been hidden behind layers of partnerships and investment vehicles involving friends, work colleagues and business partners. Untangling their financial holdings provides an unusually detailed look at how politically connected people have profited from being at the intersection of government and business as state influence and private wealth converge in China’s fast-growing economy.

Unlike most new businesses in China, the family’s ventures sometimes received financial backing from state-owned companies, including China Mobile, one of the country’s biggest phone operators, the documents show. At other times, the ventures won support from some of Asia’s richest tycoons. The Times found that Mr. Wen’s relatives accumulated shares in banks, jewelers, tourist resorts, telecommunications companies and infrastructure projects, sometimes by using offshore entities.

The holdings include a villa development project in Beijing; a tire factory in northern China; a company that helped build some of Beijing’s Olympic stadiums, including the well-known “Bird’s Nest”; and Ping An Insurance, one of the world’s biggest financial services companies.

As prime minister in an economy that remains heavily state-driven, Mr. Wen, who is best known for his simple ways and common touch, more importantly has broad authority over the major industries where his relatives have made their fortunes. Chinese companies cannot list their shares on a stock exchange without approval from agencies overseen by Mr. Wen, for example. He also has the power to influence investments in strategic sectors like energy and telecommunications. Continue reading