CHINA-CORRUPTION

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CHINA-CORRUPTION

CHINA’S POWER STRUGGLEClosing in on Zhou’s circleSince former domestic security chief Zhou Yongkang fell from grace, many of his aides and associateshave been placed under investigation. He and his wife are currently under house arrest.FamilyPolitical alliesand aidesSichuan businessassociatesOil industryassociatesTried and sentencedLI CHUNCHENGFmr. deputy party boss of SichuanLI DONGSHENGFmr. Vice Minister for Public SecurityLI CHONGXI2Fmr. assistant to ZhouPING XINGFmr. chairman, ChengduHi-Tech Dev.LI GUANGYUANChairman, Sichuan StarCable (SCS)SHEN LUDONGManaging director, SCSYANG PINGChief Financial Officer, SCSGUO YONGXIANGFmr. deputy governor of SichuanJI WENLIN1Vice governor of HainanHUA BANGSONGChairman, Wison Engineering ServicesWEN QINGSHANFmr. chief accountant, CNPCBO QILIANGFmr. vice president, PetroChinaRAN XINQUANFmr. vice president, PetroChinaWEI ZHIGANGFmr. head of ops. PetroChina, IndonesiaWANG DAOFUFmr. chief geologist, PetroChinaZHANG BENQUANFmr head of ops. PetroChina, IranLI HUALINFmr. deputy gen. manager, CNPCHE YUYING3Fmr. executive, SCSHE YANChairwoman, GoldTel GroupLIU HANFmr. Chinese mining magnate withsuspected links to Zhou BinZHOU BINEldest son4JIA XIAOYEWife ZHOUYUANQINGBrotherWANG YONGCHUNFmr. vice president, CNPCJIANG JIEMINFmr. CNPC/PetroChina chairmanLI ZHIMINGFmr head of CNPC, PetroChina, CanadaSONG YIWUFmr deputy head of CNPC's overseas operations.JIN JIANPINGZHOU Fmr. chairman, Tianjin Jinran Public UtilitiesLINGYINGBrother’s wifeNote: CNPC = China National Petroleum Corp. 1Ji worked as an aide for Zhou when the latter was land resources minister in the late 1990s. He then followed Zhou toSichuan province and became one of his secretaries when Zhou was provincial party boss. 2 Also former head of an advisory body to legislature in Sichuan. 3 Died inSeptember; the company did not provide a reason for her death. 4 From a previous marriage.Source: Reuters.SPECIAL REPORT 4


CHINA’S POWER STRUGGLETABLES TURNED: Blind civilrights activist Chen Guangchengbelieves Zhou’s security apparatuspersecuted him before he escapedto the United States in 2012 andsays it is now “appropriate” theex-security chief is under the gun.REUTERS/PICHI CHUANGambitious agenda of restoring the party’sprestige and accelerating China’s revival asa great power. He is also unshackling himselffrom the bonds of patronage and familyloyalties that have tied top Chinese leadersto their predecessors. Xi and Zhou wereboth proteges of party power broker and retiredPresident Jiang Zemin, who gave hisblessing to Xi’s ascendance to the top job.Zhou now finds himself at the mercyof an opaque legal system, bereft of dueprocess, that he once wielded against thousandsof Chinese citizens he deemed athreat to the Communist regime. He hasbeen under virtual house arrest since latelast year, according to sources familiar withthe investigation. There is no public informationthat he has been brought before acourt. It is not known if he has a lawyer. Hehas made no public statements about theprobe. And investigators have yet to produceany evidence of wrongdoing.For now, Xi has the upper hand in apower struggle that is roiling elite politics inChina. A sweeping purge of Zhou’s familyand political and business allies is continuing.Zhou’s eldest son by his first marriage,Zhou Bin, is expected to be indicted soonon corruption charges, two sources withknowledge of the investigation said. ZhouBin is in custody and couldn’t be reachedfor comment.For Xi, the public move against ZhouYongkang is the pinnacle of his campaignto bring down “tigers” and “flies,” shorthandfor corrupt officials of senior and low rank,in a high stakes war he has declared on officialgraft. The formal announcement thatZhou is being investigated also confirmedthat Xi had marshaled sufficient politicalsupport to shatter a party taboo: It hasbeen an unwritten rule that current andretired members of the Politburo StandingCommittee are immune from corruptioninvestigations. Zhou, who served onChina’s most powerful decision-makingbody at the same time as he was internalsecurity chief, is now the most senior leadertargeted for graft since the Communiststook power in 1949.Zhou married a China CentralTelevision (CCTV) presenter almost threedecades his junior in the year after the carcrash that killed his first wife and which investigatorsare now revisiting. They are alsocombing through his professional life forevidence of graft or other crimes, accordingto the sources with ties to the leadership.He is accused of corruption involvingfamily members and political allies as wellSPECIAL REPORT 5


CHINA’S POWER STRUGGLEPETRO-PURGE: Xi’s corruption probe has focused on China’s sprawling state-owned oil industry, which Zhou once oversaw as head of China NationalPetroleum Corporation. REUTERS/JASON LEEnews agency reported on August 14 that 23of these officials had been charged. Manyof them have no apparent link to Zhou.Still, defanging a “tiger” of Zhou’s statureremains a key focus for Xi. The statementthat Zhou was being investigatedcoincided with an announcement that theparty’s Central Committee would meet inOctober to study “rule by law,” seeminglya reference to strengthening the role of thelegal system to ensure all Chinese citizensare treated equally.“They are afraid nabbing ZhouYongkang will be perceived as the outcomeof a power struggle,” says Bo, from the EastAsian Institute. “So when they announcethe probe, they also say they want to carryout the rule of law.”- Editing by Peter Hirschberg and Bill TarrantFOR MORE INFORMATIONDavid Laguedavid.lague@thomsonreuters.comCharlie Zhucharlie.zhu@thomsonreuters.comBenjamin Kang Limbenjamin.lim@thomsonreuters.comPeter Hirschberg,Asia Investigative Editorpeter.hirschberg@thomsonreuters.comBill Tarrant, Enterprise Editorwilliam.tarrant@thomsonreuters.comMichael Williams, Global Enterprise Editormichael.j.williams@thomsonreuters.com© Thomson Reuters 2014. All rights reserved. 47001073 0310. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is prohibited without the prior written consent ofThomson Reuters. ‘Thomson Reuters’ and the Thomson Reuters logo are registered trademarks and trademarks of Thomson reuters and its affiliated companies.SPECIAL REPORT 9

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