China
China ‘investigating’ missing Defense Minister Li Shangfu: reports
Chinese Defense Minister Li Shangfu is reportedly being investigated by the ruling Chinese Communist Party after being out of the public eye since Aug. 29, according to several Western media reports.
Li is the second senior Chinese official to go missing after the recent disappearance of former Foreign Minister Qin Gang.
Reuters quoted “10 people familiar with the matter” as saying that Li is being probed for corrupt procurement of military equipment, without specifying the kind of equipment involved.
“Eight senior officials from the Chinese military’s procurement unit, which Li led from 2017 to 2022, are also under investigation,” the agency said in a report on Friday, citing two people in direct contact with the military.
The Washington Post quoted U.S. officials as saying that Li, who was last seen in public at the China-Africa Peace and Security Forum in Beijing on Aug. 29, is currently under investigation for “corruption,” and will likely be removed from his post.
An official account of Li’s last public speech from state news agency Xinhua was still available on the website of the State Council on Friday.
The Wall Street Journal also reported that Li will lose his job, while the Financial Times reported that the U.S. government believes him to be under investigation.
Li, 65, has missed meetings with Vietnamese and Singaporean defense leaders in recent weeks, Reuters said in an earlier report quoting sources with direct knowledge of the engagements.
Another disappearance
The reports came after Rahm Emanuel, the U.S. ambassador to Japan, tweeted that Li was also “a no-show” for his planned trip to Vietnam, drawing parallels with Qin Gang’s disappearance.
“President Xi’s cabinet lineup is now resembling Agatha Christie’s novel ‘And Then There Were None,’” Emanuel wrote. “First, Foreign Minister Qin Gang goes missing, then the Rocket Force commanders go missing, and now Defense Minister Li Shangfu hasn’t been seen in public for two weeks. Who’s going to win this unemployment race? China’s youth or Xi’s cabinet?”
Beijing has remained tight-lipped about the whereabouts of Qin, who was replaced as foreign minister by top Communist Party diplomat Wang Yi on July 25.
By July 31, President Xi Jinping had also replaced the commander of the country’s rocket corps — which controls the country’s nuclear missiles — amid media reports of an investigation into his predecessor and his deputies.
U.S.-based former PLA Navy Lt. Col. Yao Cheng said that move was part of Xi’s bid to remove any dissenting voices from the highest echelons of military command as part of preparations for a military invasion of democratic Taiwan.
“It’s been the Rocket Force people who don’t want to go along with Xi Jinping’s plan,” Yao told Radio Free Asia at the time. “They don’t want a war — they fear war because they have a very clear idea of what their missile capabilities are.”
1982 army enlistment
Li joined the Communist Party in 1980 and enlisted in the army in 1982, serving as director of the Equipment Development Department of the Central Military Commission and other important positions in procurement.
By 2022, he had a seat on the party’s 20th Central Committee, and was appointed defense minister in March 2023.
Li was sanctioned by the U.S. State Department in September 2018 due to transactions with Russian arms dealers.
Chinese foreign ministry spokeswoman Mao Ning declined to comment on Li Shangfu’s whereabouts when asked about him during a regular news briefing on Monday.
“I’m not aware of the relevant information,” she told reporters.
The defense ministry didn’t immediately respond to requests for comment from Reuters, while the U.S. Embassy in Tokyo said it had no further comment for the time being, the agency reported.
‘Invisible’ factors
Political commentator Johnny Lau said that arrests of senior officials in China for “corruption” can be highly selective, and have little to do with how corrupt any of them are.
“We have seen in the past that there were a number of factors that were invisible … in the Chinese Communist Party’s ongoing anti-corruption campaign,” Lau said. “In other words, he has chosen [whom to target], and these aren’t genuine anti-corruption cases.”
“They don’t involve the state legal system until they have figured out the impact on the party [of targeting this person], using its disciplinary system,” he said.
“This way of going about it feels a lot like rule by a single individual.”
But Lau said Beijing is unlikely to put on a big show trial, as it did in the case of former Chongqing party chief Bo Xilai and his political associates.
“A lot of these things are dependent on various factors, like internal reshuffles, power struggles and internal shock-dampening,” he said.
But Lau saw the recent changes at the head of the Rocket Force as likely to lead to less military tension, rather than more.
China this week unveiled a “blueprint” for “peaceful unification” including economic incentives and sweeteners for residents of Taiwan, which has never been ruled by Beijing, to move to China’s Fujian province to live and work.
Translated by Luisetta Mudie. Edited by Malcolm Foster.
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Business
Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China
Gordonstoun school severed ties with Hampton Group over espionage allegations against chairman Yang Tengbo. He denies involvement and claims to be a victim of political tensions between the UK and China.
Allegations Lead to School’s Decision
Gordonstoun School in Moray has cut ties with Hampton Group International after serious allegations surfaced regarding its chairman, Yang Tengbo, who is accused of being a spy for the Chinese government. Known by the alias "H6," Mr. Tengbo was involved in a deal that aimed to establish five new schools in China affiliated with Gordonstoun. However, the recent allegations compelled the school to terminate their agreement.
Public Denial and Legal Action
In response to the spying claims, Mr. Tengbo publicly revealed his identity, asserting that he has committed no wrongdoing. A close associate of Prince Andrew and a former Gordonstoun student himself, Mr. Tengbo has strenuously denied the accusations, stating that he is a target of the escalating tensions between the UK and China. He has claimed that his mistreatment is politically motivated.
Immigration Challenges and Legal Responses
Yang Tengbo, also known as Chris Yang, has faced additional challenges regarding his immigration status in the UK. After losing an appeal against a ban enacted last year, he reiterated his innocence, condemning media speculation while emphasizing his commitment to clear his name. Gordonstoun, on its part, stated its inability to divulge further details due to legal constraints.
Source : Gordonstoun cuts ties with business chaired by man accused of spying for China
Business
China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
The Chinese government demolished the Rebiya Kadeer Trade Center in Xinjiang, affecting Uyghur culture and commerce, prompting criticism from activists amid concerns over cultural erasure and human rights violations.
Demolition of a Cultural Landmark
The Chinese government recently demolished the Rebiya Kadeer Trade Center in Urumqi, Xinjiang, a vital hub for Uyghur culture and commerce, as reported by VOA. This center, once inhabited by more than 800 predominantly Uyghur-owned businesses, has been deserted since 2009. Authorities forcibly ordered local business owners to vacate the premises before proceeding with the demolition, which took place without any public notice.
Condemnation from Activists
Uyghur rights activists have condemned this demolition, perceiving it as part of China’s broader strategy to undermine Uyghur identity and heritage. The event has sparked heightened international concern regarding China’s policies in Xinjiang, which have been characterized by allegations of mass detentions and cultural suppression, prompting claims of crimes against humanity.
Rebiya Kadeer’s Response
Rebiya Kadeer, the center’s namesake and a notable Uyghur rights advocate, criticized the demolition as a deliberate attempt to erase her legacy. Kadeer, who has been living in exile in the U.S. since her release from imprisonment in 2005, continues to advocate for Uyghur rights. She has expressed that her family members have suffered persecution due to her activism, while the Chinese government has yet to comment on the legal ramifications of the demolition.
Source : China Demolishes Uyghur Business Landmark in Xinjiang – Shia Waves
China
China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program
China’s private pension scheme, previously piloted in 36 cities, will roll out nationwide on December 15, 2024, enabling workers to open tax-deferred accounts. The initiative aims to enhance retirement savings, address aging population challenges, and stimulate financial sector growth.
After a two-year pilot program, China has officially expanded its private pension scheme nationwide. Starting December 15, 2024, workers covered by urban employee basic pension insurance or urban-rural resident basic pension insurance across the country can participate in this supplementary pension scheme. This nationwide rollout represents a significant milestone in China’s efforts to build a comprehensive pension system, addressing the challenges of a rapidly aging population.
On December 12, 2024, the Ministry of Human Resources and Social Security, together with four other departments including the Ministry of Finance, the State Taxation Administration, the Financial Regulatory Administration, and the China Securities Regulatory Commission, announced the nationwide implementation of China’s private pension scheme effective December 15, 2024. The initiative extends eligibility to all workers enrolled in urban employee basic pension insurance or urban-rural resident basic pension insurance.
A notable development is the expansion of tax incentives for private pensions, previously limited to pilot cities, to a national scale. Participants can now enjoy these benefits across China, with government agencies collaborating to ensure seamless implementation and to encourage broad participation through these enhanced incentives.
China first introduced its private pension scheme in November 2022 as a pilot program covering 36 cities and regions, including major hubs like Beijing, Shanghai, Guangzhou, Xi’an, and Chengdu. Under the program, individuals were allowed to open tax-deferred private pension accounts, contributing up to RMB 12,000 (approximately $1,654) annually to invest in a range of retirement products such as bank deposits, mutual funds, commercial pension insurance, and wealth management products.
Read more about China’s private pension pilot program launched two years ago: China Officially Launches New Private Pension Scheme – Who Can Take Part?
The nationwide implementation underscores the Chinese government’s commitment to addressing demographic challenges and promoting economic resilience. By providing tax advantages and expanding access, the scheme aims to incentivize long-term savings and foster greater participation in personal retirement planning.
The reform is expected to catalyze growth in China’s financial and insurance sectors while offering individuals a reliable mechanism to enhance their retirement security.
This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
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