Identifier
Created
Classification
Origin
07CHENGDU30
2007-01-31 08:22:00
CONFIDENTIAL
Consulate Chengdu
Cable title:
SOUTHWEST CHINA LEADERSHIP CHANGES FROM THE "PRINCELING"
how-toVZCZCXRO3283 RR RUEHCN RUEHGH DE RUEHCN #0030/01 0310822 ZNY CCCCC ZZH R 310822Z JAN 07 FM AMCONSUL CHENGDU TO RUEHC/SECSTATE WASHDC 2364 INFO RUEHBJ/AMEMBASSY BEIJING 1219 RUEHGH/AMCONSUL SHANGHAI 0673 RUEHSH/AMCONSUL SHENYANG 0641 RUEHGZ/AMCONSUL GUANGZHOU 0663 RUEHHK/AMCONSUL HONG KONG 0685 RUEHIN/AIT TAIPEI 0583 RUEHGP/AMEMBASSY SINGAPORE 0018 RUEHKO/AMEMBASSY TOKYO 0044 RUEHUL/AMEMBASSY SEOUL 0038 RHEFDIA/DIA WASHINGTON DC RHEHAAA/NSC WASHINGTON DC RUEHCN/AMCONSUL CHENGDU 2859
C O N F I D E N T I A L SECTION 01 OF 03 CHENGDU 000030
SIPDIS
SIPDIS
DEPT FOR EAP/CM AND INR
E.O. 12958: DECL: 1/31/2032
TAGS: PGOV ECON PINR CH
SUBJECT: SOUTHWEST CHINA LEADERSHIP CHANGES FROM THE "PRINCELING"
PERSPECTIVE
REF: A) 06 CHENGDU 1262 B) 06 CHENGDU 1016
CLASSIFIED BY: James A. Boughner, Consul General, U.S. Consulate
General , Chengdu.
REASON: 1.4 (b),(d)
CLASSIFIED BY: James A. Boughner, Consul General, U.S. Consulate
General , Chengdu.
REASON: 1.4 (b),(d)
C O N F I D E N T I A L SECTION 01 OF 03 CHENGDU 000030
SIPDIS
SIPDIS
DEPT FOR EAP/CM AND INR
E.O. 12958: DECL: 1/31/2032
TAGS: PGOV ECON PINR CH
SUBJECT: SOUTHWEST CHINA LEADERSHIP CHANGES FROM THE "PRINCELING"
PERSPECTIVE
REF: A) 06 CHENGDU 1262 B) 06 CHENGDU 1016
CLASSIFIED BY: James A. Boughner, Consul General, U.S. Consulate
General , Chengdu.
REASON: 1.4 (b),(d)
CLASSIFIED BY: James A. Boughner, Consul General, U.S. Consulate
General , Chengdu.
REASON: 1.4 (b),(d)
1. (C) Summary: Discussing the prospects of key local
government leaders, a well-connected Congen contact suggested it
is possible Chengdu Party Secretary Li Chuncheng's promotion
hopes could be somewhat dented due to real estate-related
corruption in the city. New Sichuan Party Secretary Du Qinglin
and Acting Governor Jiang Jufeng are well-respected managers,
were purposely chosen by Beijing as provincial outsiders, and
are likely to be careful in going about any administrative
changes. According to Deng Xiaoping nephew Zhang Haijiang, much
of his family's real estate concerns are focused in Guangdong or
Hainan in southeast China. Stories told by both Congen contact
and Zhang appear indicative of the often thin line separating
local business and government interests. End Summary.
--------------
Privileged Background
--------------
2. (C) At the fringes of a recent reception held in Chongqing, a
local contact shared his thoughts on high-level personnel
changes and political developments within Sichuan Province and
the centrally-administered Chongqing municipality. Speaking to
the CG tete-a-tete in a large banqueting hall holding several
hundred people with loud music blasting from a floor show in the
background, our contact said one could fairly describe him as
having been raised as a "taizi" or "princeling," a child of a
former high ranking government official with access to special
perks and privileges. Although our contact went on to study in
the United States and became an American citizen, he returned to
China to run a US-based business and tries to keep informed
about the direction of government policies through his father
who still lives in Beijing.
3. (C) Our contact indicated his father used to head one of
China's state banks and is partnered with former Foreign Trade
and Economic Cooperation (MOFTEC) Assistant Minister and WTO
negotiator Long Yongtu, as well as several other retired
officials, at a Chinese venture capital fund. Long, currently
the Secretary General of the Boao Forum for Asia, is the
principal manager of the fund which he handles for the most part
out of an office in Hainan. Our contact said his father and his
father's friends "hate" the Communist Party, but love China and
take pride in its economic accomplishments. While apparently
oblivious to the inherent irony of the situation, our contact
also noted his father did everything possible to ensure his
children were educated overseas and acquired foreign passports.
Our contact's sister has spent most of her adult life in Europe.
--------------
Chengdu and Chongqing
--------------
4. (C) Just back from Beijing on a visit to his father, our
contact said that Chengdu Party Secretary Li Chuncheng had also
traveled recently to the capital where he lobbied to be promoted
out of the current job that he has held for close to four years
and be given a provincial governorship, preferably in northeast
China where he began his early career. Our contact noted that,
although he has performed well in Chengdu, Li feels he has been
unable to develop a strong local power base and is ambitious for
greater responsibilities. The father of our contact told him it
is unclear what onward assignment Li will be given, but it is
quite possible he will have to make do with a deputy
governorship, especially since he has been tainted by a local
real estate corruption scandal (see ref b). Li's overall
CHENGDU 00000030 002 OF 003
competence, ability to get things done and implement policies
efficiently, however, has not gone unnoticed and is appreciated
in Beijing. Our contact said he did not know what position
Chengdu Mayor Ge Honglin -- a Shanghai native and former head of
the Baogang Iron and Steel Group -- is likely to end up with,
but indicated Ge is also considered an effective administrator.
5. (C) In Chongqing, our contact continued, Party Secretary and
Anhui native Wang Yang is capable and competent and has the
support of Hu Jintao. Appointed to his position a little over a
year ago, however, the challenges faced by Wang of trying to run
the Chongqing municipality -- an area that includes a massive
rural population and poor families resettled from the Three
Gorges project -- are immense. Chongqing Mayor Wang Hongju, a
hometown boy, is popular with local officials.
--------------
Provincial-Level Leaders
--------------
6. (C) Our contact remarked his father has known Sichuan's new
Acting Governor Jiang Jufeng, who was just promoted on January
24 from the province's executive deputy governor slot, for over
twenty years and views him to be someone who is flexible and
easy to work with. While not considered "brilliant," our
contact continued, Jiang has a reputation for "steady
dependability." As a Zhejiang native and former Wenzhou Party
Secretary, Jiang is likely to prove more independent of "local
SIPDIS
interests" than his predecessor, Sichuan native Zhang Zhongwei.
(Note: One of Jiang's assistants told CG at a December banquet
that his boss would likely be promoted to governor as he had
already proven himself working in Sichuan, but was not himself
from Sichuan. The assistant commented the Central Government
almost always prefers to have non-locals in top provincial
slots. End note.)
7. (C) According to our contact, Sichuan Party Secretary Du
Qinglin, formerly China's Minister of Agriculture, appears for
now to be keeping a low profile and has made few public
appearances. Just appointed in December 2006, Du is of course a
Hu Jintao loyalist. His predecessor, Zhang Xuezhong, however,
was very close to Hu and had a personal relationship with him
dating back to the 1980's. Du, therefore, may need to be
careful not to proceed too quickly with any desired changes in
Sichuan's administration.
--------------
The Deng Family
--------------
8. (C) During a separate conversation at yet another recent
banquet, Deng Xiaoping nephew Zhang Haijiang claimed to CG he
knows little about the new provincial party secretary. He
volunteered, however, that he greatly admires Chengdu Party
Secretary Li's efforts to promote growth and economic
SIPDIS
opportunities in the city. Zhang, the son of Deng Xiaoping
younger half-sister Deng Xianfu, observed "business has been
good" under Li. At the same time, however, Zhang observed that
during the last eight months or so it has been increasingly
difficult to purchase lots for real estate development projects
in the city. In fact, Zhang and his partners decided to pull
out of one major property deal that appeared to be held up
indefinitely. Currently the general manager of the Huayue Real
Estate Development Company in Guangzhou, Zhang said he spends
most of his time in southern China and is particularly
interested in Shenzhen and Hainan where his firm has been
responsible for a number of luxury property developments.
9. (C) Noting his mother lives much of the year in Hainan, Zhang
said she is closely involved in a number of her own business
ventures. Xie Shijie, former Sichuan Party Secretary during the
mid-1990's, also lives in Hainan and helps to manage investments
made by Zhang's mother. (Note: CG has met Zhang's elderly
mother and doubts she herself could play any kind of active
management role in a business other than to serve as a figure
head. End note). Zhang said he is disappointed that his son,
who recently graduated from Carnegie Mellon University and also
went to high school in the United States, has had difficulty
finding work he likes in China and is thinking about returning
CHENGDU 00000030 003 OF 003
to the US for graduate study. Zhang is trying to convince him
to at least try working in Hong Kong first. Zhang's daughter is
a student in Santa Barbara and the family has purchased a large
home there.
--------------
Comments
--------------
10. (C) When a city like Chengdu undergoes the kind of rapid
transformation and building boom it has had during the last few
years under Party Secretary Li's tenure, access to the most
prime plots of land is naturally a potential source of both huge
profit and temptation. Commenting that most of Singapore's USD
400 million of FDI in Sichuan Province is related to real estate
investments, the Singapore Consul General told us recently his
country's firms have also noticed a bit of a government slowdown
within the last few months on licenses to develop property in
Chengdu. Post speculates that Chengdu Party Secretary Li, with
his promotion perhaps on the line, may have called for at least
a temporary timeout.
BOUGHNER
SIPDIS
SIPDIS
DEPT FOR EAP/CM AND INR
E.O. 12958: DECL: 1/31/2032
TAGS: PGOV ECON PINR CH
SUBJECT: SOUTHWEST CHINA LEADERSHIP CHANGES FROM THE "PRINCELING"
PERSPECTIVE
REF: A) 06 CHENGDU 1262 B) 06 CHENGDU 1016
CLASSIFIED BY: James A. Boughner, Consul General, U.S. Consulate
General , Chengdu.
REASON: 1.4 (b),(d)
CLASSIFIED BY: James A. Boughner, Consul General, U.S. Consulate
General , Chengdu.
REASON: 1.4 (b),(d)
1. (C) Summary: Discussing the prospects of key local
government leaders, a well-connected Congen contact suggested it
is possible Chengdu Party Secretary Li Chuncheng's promotion
hopes could be somewhat dented due to real estate-related
corruption in the city. New Sichuan Party Secretary Du Qinglin
and Acting Governor Jiang Jufeng are well-respected managers,
were purposely chosen by Beijing as provincial outsiders, and
are likely to be careful in going about any administrative
changes. According to Deng Xiaoping nephew Zhang Haijiang, much
of his family's real estate concerns are focused in Guangdong or
Hainan in southeast China. Stories told by both Congen contact
and Zhang appear indicative of the often thin line separating
local business and government interests. End Summary.
--------------
Privileged Background
--------------
2. (C) At the fringes of a recent reception held in Chongqing, a
local contact shared his thoughts on high-level personnel
changes and political developments within Sichuan Province and
the centrally-administered Chongqing municipality. Speaking to
the CG tete-a-tete in a large banqueting hall holding several
hundred people with loud music blasting from a floor show in the
background, our contact said one could fairly describe him as
having been raised as a "taizi" or "princeling," a child of a
former high ranking government official with access to special
perks and privileges. Although our contact went on to study in
the United States and became an American citizen, he returned to
China to run a US-based business and tries to keep informed
about the direction of government policies through his father
who still lives in Beijing.
3. (C) Our contact indicated his father used to head one of
China's state banks and is partnered with former Foreign Trade
and Economic Cooperation (MOFTEC) Assistant Minister and WTO
negotiator Long Yongtu, as well as several other retired
officials, at a Chinese venture capital fund. Long, currently
the Secretary General of the Boao Forum for Asia, is the
principal manager of the fund which he handles for the most part
out of an office in Hainan. Our contact said his father and his
father's friends "hate" the Communist Party, but love China and
take pride in its economic accomplishments. While apparently
oblivious to the inherent irony of the situation, our contact
also noted his father did everything possible to ensure his
children were educated overseas and acquired foreign passports.
Our contact's sister has spent most of her adult life in Europe.
--------------
Chengdu and Chongqing
--------------
4. (C) Just back from Beijing on a visit to his father, our
contact said that Chengdu Party Secretary Li Chuncheng had also
traveled recently to the capital where he lobbied to be promoted
out of the current job that he has held for close to four years
and be given a provincial governorship, preferably in northeast
China where he began his early career. Our contact noted that,
although he has performed well in Chengdu, Li feels he has been
unable to develop a strong local power base and is ambitious for
greater responsibilities. The father of our contact told him it
is unclear what onward assignment Li will be given, but it is
quite possible he will have to make do with a deputy
governorship, especially since he has been tainted by a local
real estate corruption scandal (see ref b). Li's overall
CHENGDU 00000030 002 OF 003
competence, ability to get things done and implement policies
efficiently, however, has not gone unnoticed and is appreciated
in Beijing. Our contact said he did not know what position
Chengdu Mayor Ge Honglin -- a Shanghai native and former head of
the Baogang Iron and Steel Group -- is likely to end up with,
but indicated Ge is also considered an effective administrator.
5. (C) In Chongqing, our contact continued, Party Secretary and
Anhui native Wang Yang is capable and competent and has the
support of Hu Jintao. Appointed to his position a little over a
year ago, however, the challenges faced by Wang of trying to run
the Chongqing municipality -- an area that includes a massive
rural population and poor families resettled from the Three
Gorges project -- are immense. Chongqing Mayor Wang Hongju, a
hometown boy, is popular with local officials.
--------------
Provincial-Level Leaders
--------------
6. (C) Our contact remarked his father has known Sichuan's new
Acting Governor Jiang Jufeng, who was just promoted on January
24 from the province's executive deputy governor slot, for over
twenty years and views him to be someone who is flexible and
easy to work with. While not considered "brilliant," our
contact continued, Jiang has a reputation for "steady
dependability." As a Zhejiang native and former Wenzhou Party
Secretary, Jiang is likely to prove more independent of "local
SIPDIS
interests" than his predecessor, Sichuan native Zhang Zhongwei.
(Note: One of Jiang's assistants told CG at a December banquet
that his boss would likely be promoted to governor as he had
already proven himself working in Sichuan, but was not himself
from Sichuan. The assistant commented the Central Government
almost always prefers to have non-locals in top provincial
slots. End note.)
7. (C) According to our contact, Sichuan Party Secretary Du
Qinglin, formerly China's Minister of Agriculture, appears for
now to be keeping a low profile and has made few public
appearances. Just appointed in December 2006, Du is of course a
Hu Jintao loyalist. His predecessor, Zhang Xuezhong, however,
was very close to Hu and had a personal relationship with him
dating back to the 1980's. Du, therefore, may need to be
careful not to proceed too quickly with any desired changes in
Sichuan's administration.
--------------
The Deng Family
--------------
8. (C) During a separate conversation at yet another recent
banquet, Deng Xiaoping nephew Zhang Haijiang claimed to CG he
knows little about the new provincial party secretary. He
volunteered, however, that he greatly admires Chengdu Party
Secretary Li's efforts to promote growth and economic
SIPDIS
opportunities in the city. Zhang, the son of Deng Xiaoping
younger half-sister Deng Xianfu, observed "business has been
good" under Li. At the same time, however, Zhang observed that
during the last eight months or so it has been increasingly
difficult to purchase lots for real estate development projects
in the city. In fact, Zhang and his partners decided to pull
out of one major property deal that appeared to be held up
indefinitely. Currently the general manager of the Huayue Real
Estate Development Company in Guangzhou, Zhang said he spends
most of his time in southern China and is particularly
interested in Shenzhen and Hainan where his firm has been
responsible for a number of luxury property developments.
9. (C) Noting his mother lives much of the year in Hainan, Zhang
said she is closely involved in a number of her own business
ventures. Xie Shijie, former Sichuan Party Secretary during the
mid-1990's, also lives in Hainan and helps to manage investments
made by Zhang's mother. (Note: CG has met Zhang's elderly
mother and doubts she herself could play any kind of active
management role in a business other than to serve as a figure
head. End note). Zhang said he is disappointed that his son,
who recently graduated from Carnegie Mellon University and also
went to high school in the United States, has had difficulty
finding work he likes in China and is thinking about returning
CHENGDU 00000030 003 OF 003
to the US for graduate study. Zhang is trying to convince him
to at least try working in Hong Kong first. Zhang's daughter is
a student in Santa Barbara and the family has purchased a large
home there.
--------------
Comments
--------------
10. (C) When a city like Chengdu undergoes the kind of rapid
transformation and building boom it has had during the last few
years under Party Secretary Li's tenure, access to the most
prime plots of land is naturally a potential source of both huge
profit and temptation. Commenting that most of Singapore's USD
400 million of FDI in Sichuan Province is related to real estate
investments, the Singapore Consul General told us recently his
country's firms have also noticed a bit of a government slowdown
within the last few months on licenses to develop property in
Chengdu. Post speculates that Chengdu Party Secretary Li, with
his promotion perhaps on the line, may have called for at least
a temporary timeout.
BOUGHNER