Identifier
Created
Classification
Origin
09SHANGHAI175
2009-04-16 08:45:00
CONFIDENTIAL
Consulate Shanghai
Cable title:
THE PERFECT MURDER? DEVELOPMENT ZONE TAKES "BUSINESS AS
how-toR 160845Z APR 09 FM AMCONSUL SHANGHAI TO SECSTATE WASHDC 7844 INFO AMEMBASSY BEIJING AMCONSUL CHENGDU AMCONSUL GUANGZHOU AMCONSUL HONG KONG NSC WASHINGTON DC AMCONSUL SHENYANG AIT TAIPEI 1702 AMCONSUL SHANGHAI
C O N F I D E N T I A L SHANGHAI 000175
STATE FOR EAP/CM, INR AND DRL
NSC FOR LOI, KUCHTA-HELBLING
E.O. 12958: DECL: 4/16/2034
TAGS: PGOV ECON EINV PHUM SOCI EFIN CH
SUBJECT: THE PERFECT MURDER? DEVELOPMENT ZONE TAKES "BUSINESS AS
USUAL" APPROACH TO SCANDAL
REF: A. (A) SHANGHAI 60
B. (B) SHANGHAI 168
CLASSIFIED BY: CHRISTOPHER BEEDE, POL/ECON CHIEF, US CONSULATE
SHANGHAI, DEPARTMENT OF STATE.
REASON: 1.4 (b),(d)
Summary
-------
C O N F I D E N T I A L SHANGHAI 000175
STATE FOR EAP/CM, INR AND DRL
NSC FOR LOI, KUCHTA-HELBLING
E.O. 12958: DECL: 4/16/2034
TAGS: PGOV ECON EINV PHUM SOCI EFIN CH
SUBJECT: THE PERFECT MURDER? DEVELOPMENT ZONE TAKES "BUSINESS AS
USUAL" APPROACH TO SCANDAL
REF: A. (A) SHANGHAI 60
B. (B) SHANGHAI 168
CLASSIFIED BY: CHRISTOPHER BEEDE, POL/ECON CHIEF, US CONSULATE
SHANGHAI, DEPARTMENT OF STATE.
REASON: 1.4 (b),(d)
Summary
--------------
1. (C) An industrial development zone in western Shanghai hosted
a glitzy investment seminar in Pudong's World Financial Center
on April 10, one month after the zone's Communist Party
Secretary was brutally murdered in an underground parking lot.
There were no public references to the murder during the
90-minute seminar, and several participants characterized the
event as "business as usual." The Director of the Shanghai
Municipal Commerce Commission spoke at the seminar, encouraging
investors to continue to do business in Shanghai, which he said
would rebound from the economic downturn. A local official told
PolOff the murder was "regrettable" and is "still under
investigation," and an American investor said he believes the
killing was a "random act of violence." One Consulate contact
suggested, however, that the official's murder most likely was
linked to corruption. End Summary.
Attracting Investor's to Shanghai's (Wild) West
-------------- --
2. (C) The Shanghai Qingpu Industrial Zone hosted a glitzy
investment seminar in the Shanghai World Financial Center
(Jinmao Tower) in the Pudong New District on April 10. The gala
celebration, marked by a signing ceremony for 21 investment
deals and complete with floral arrangements, upbeat music
(including the "Bonanza" theme song),and attractive hostesses,
aimed to attract new investors to the 56.2 square kilometer
zone, which is located in western Shanghai near Hongqiao
Airport. Yu Haiping, the Qingpu Industrial Zone's General
Manager, lauded the area's investment climate, which he said
(and glossy promotion materials reiterated) features a strong
transportation network adjacent to the soon-to-be completed
Hongqiao Comprehensive Transportation Hub (Ref A) with
convenient routes throughout the Yangtze River Delta region,
high quality human resources base with two universities in
Qingpu District, comprehensive investor services, and a clean
natural environment.
Event Preceded by Murder of Zone's Top Party Official
-------------- --------------
3. (C) One month prior to the seminar, the Qingpu Industrial
Zone had attracted netizens' interest after an article appeared
on Sina.com reporting that Li Mingyun, the zone's Communist
Party Secretary, was found brutally murdered on the morning of
March 9. Li's body was found in an underground parking lot by
another resident. The 59-year old Li had worked for the Qingpu
Industrial Zone since 2005 and had worked for the Qingpu
District Government since 1997. The Sina.com article stated
that Li also was beaten up four months before the murder, but he
did not report the assault to the police. Li reportedly was
nine months away from retirement when he was killed. There were
no public references to Li's death during the 90-minute seminar
on April 10.
"Business as Usual" in Midst of Financial Crisis
-------------- ---
4. (C) Several participants privately commented to PolOff on the
unusual circumstances, but they characterized the seminar as
"business as usual." Greg Gottlieb, an American investor, told
PolOff that he thought it was strange there was no mention of Li
during the event, but the murder had had virtually no impact on
business in the Qingpu Industrial Zone. "Other than that we
knew him, it doesn't really affect us," said Gottlieb, who is
Senior VP and Managing Director for Asia-Pacific at Armstrong
World Industries. Sha Hailin, the Director of the Shanghai
Municipal Commerce Commission, spoke at the seminar,
accentuating the "business as usual" feeling by focusing his
remarks on continuing to attract investment to Shanghai despite
the global financial crisis and China's own economic downturn.
Sha exhorted investors to continue to do business in Shanghai,
which he confidently said would quickly rebound from the
downturn. Sha reassured participants that the Shanghai
Municipal Government is "taking steps" to deal with the economic
situation, adding that he was late to the seminar because of an
"important meeting to deal with the crisis."
Perhaps a Random Act of Violence...
--------------
5. (C) When directly queried on Li's murder, a Qingpu District
Bureau of Industry and Commerce official told PolOff the murder
was "regrettable," but he did not want to talk about it because
the case is "still under investigation." He defended the zone's
decision to take a "business as usual" approach to the
investment seminar, saying that it was more important to
consider the "whole situation" than a tragedy involving one
individual. Armstrong's Gottlieb told PolOff he had heard
little about the murder since it occurred, but he was led to
believe it was the result of a "random act of violence."
...Or Perhaps Not
--------------
6. (C) One Consulate contact who is an expert on local
governance, however, does not believe Li's murder was a random
event. Professor Zhu Xueqin, Dean of the Peace and Development
Institute at Shanghai University, suggested that the official's
murder most likely was linked to corruption, especially given
that Li was set to retire and it was the second time he had been
attacked. Noting that there are fewer reported cases of
corruption in Shanghai than elsewhere in East China, Zhu said
the account of Li's murder was reported in a "skillful" way to
imply corruption without directly saying as much. (See also Ref
B on reporting corruption online in East China.)
Comment: Wolves in Sheeps' Clothing?
--------------
7. (C) Some officials at the investment seminar (for which
planning began long before the murder) appeared to be delighted
that the Party Secretary no longer is in the picture. In
particular, Yu Haiping, the zone's happy-go-lucky general
manager, seemed quite pleased to serve as the zone's official
representative and pose for photographs with investors. While
it is not surprising that a development zone seeking investors
would not advertise the murder of one of its leaders at an
investment seminar, the sequence of events from Li's murder on
March 9 to the investment seminar on April 10, taken together
with the indifferent reaction by seminar participants to Li's
murder, gives the appearance that: (1) Li was not well-loved by
those who worked for him, lending a degree of credence to the
view that he was engaged in corrupt practices, and (2) others in
the zone's leadership hierarchy are now benefiting from inking
21 new investment deals in the aftermath of Li's death.
CAMP
STATE FOR EAP/CM, INR AND DRL
NSC FOR LOI, KUCHTA-HELBLING
E.O. 12958: DECL: 4/16/2034
TAGS: PGOV ECON EINV PHUM SOCI EFIN CH
SUBJECT: THE PERFECT MURDER? DEVELOPMENT ZONE TAKES "BUSINESS AS
USUAL" APPROACH TO SCANDAL
REF: A. (A) SHANGHAI 60
B. (B) SHANGHAI 168
CLASSIFIED BY: CHRISTOPHER BEEDE, POL/ECON CHIEF, US CONSULATE
SHANGHAI, DEPARTMENT OF STATE.
REASON: 1.4 (b),(d)
Summary
--------------
1. (C) An industrial development zone in western Shanghai hosted
a glitzy investment seminar in Pudong's World Financial Center
on April 10, one month after the zone's Communist Party
Secretary was brutally murdered in an underground parking lot.
There were no public references to the murder during the
90-minute seminar, and several participants characterized the
event as "business as usual." The Director of the Shanghai
Municipal Commerce Commission spoke at the seminar, encouraging
investors to continue to do business in Shanghai, which he said
would rebound from the economic downturn. A local official told
PolOff the murder was "regrettable" and is "still under
investigation," and an American investor said he believes the
killing was a "random act of violence." One Consulate contact
suggested, however, that the official's murder most likely was
linked to corruption. End Summary.
Attracting Investor's to Shanghai's (Wild) West
-------------- --
2. (C) The Shanghai Qingpu Industrial Zone hosted a glitzy
investment seminar in the Shanghai World Financial Center
(Jinmao Tower) in the Pudong New District on April 10. The gala
celebration, marked by a signing ceremony for 21 investment
deals and complete with floral arrangements, upbeat music
(including the "Bonanza" theme song),and attractive hostesses,
aimed to attract new investors to the 56.2 square kilometer
zone, which is located in western Shanghai near Hongqiao
Airport. Yu Haiping, the Qingpu Industrial Zone's General
Manager, lauded the area's investment climate, which he said
(and glossy promotion materials reiterated) features a strong
transportation network adjacent to the soon-to-be completed
Hongqiao Comprehensive Transportation Hub (Ref A) with
convenient routes throughout the Yangtze River Delta region,
high quality human resources base with two universities in
Qingpu District, comprehensive investor services, and a clean
natural environment.
Event Preceded by Murder of Zone's Top Party Official
-------------- --------------
3. (C) One month prior to the seminar, the Qingpu Industrial
Zone had attracted netizens' interest after an article appeared
on Sina.com reporting that Li Mingyun, the zone's Communist
Party Secretary, was found brutally murdered on the morning of
March 9. Li's body was found in an underground parking lot by
another resident. The 59-year old Li had worked for the Qingpu
Industrial Zone since 2005 and had worked for the Qingpu
District Government since 1997. The Sina.com article stated
that Li also was beaten up four months before the murder, but he
did not report the assault to the police. Li reportedly was
nine months away from retirement when he was killed. There were
no public references to Li's death during the 90-minute seminar
on April 10.
"Business as Usual" in Midst of Financial Crisis
-------------- ---
4. (C) Several participants privately commented to PolOff on the
unusual circumstances, but they characterized the seminar as
"business as usual." Greg Gottlieb, an American investor, told
PolOff that he thought it was strange there was no mention of Li
during the event, but the murder had had virtually no impact on
business in the Qingpu Industrial Zone. "Other than that we
knew him, it doesn't really affect us," said Gottlieb, who is
Senior VP and Managing Director for Asia-Pacific at Armstrong
World Industries. Sha Hailin, the Director of the Shanghai
Municipal Commerce Commission, spoke at the seminar,
accentuating the "business as usual" feeling by focusing his
remarks on continuing to attract investment to Shanghai despite
the global financial crisis and China's own economic downturn.
Sha exhorted investors to continue to do business in Shanghai,
which he confidently said would quickly rebound from the
downturn. Sha reassured participants that the Shanghai
Municipal Government is "taking steps" to deal with the economic
situation, adding that he was late to the seminar because of an
"important meeting to deal with the crisis."
Perhaps a Random Act of Violence...
--------------
5. (C) When directly queried on Li's murder, a Qingpu District
Bureau of Industry and Commerce official told PolOff the murder
was "regrettable," but he did not want to talk about it because
the case is "still under investigation." He defended the zone's
decision to take a "business as usual" approach to the
investment seminar, saying that it was more important to
consider the "whole situation" than a tragedy involving one
individual. Armstrong's Gottlieb told PolOff he had heard
little about the murder since it occurred, but he was led to
believe it was the result of a "random act of violence."
...Or Perhaps Not
--------------
6. (C) One Consulate contact who is an expert on local
governance, however, does not believe Li's murder was a random
event. Professor Zhu Xueqin, Dean of the Peace and Development
Institute at Shanghai University, suggested that the official's
murder most likely was linked to corruption, especially given
that Li was set to retire and it was the second time he had been
attacked. Noting that there are fewer reported cases of
corruption in Shanghai than elsewhere in East China, Zhu said
the account of Li's murder was reported in a "skillful" way to
imply corruption without directly saying as much. (See also Ref
B on reporting corruption online in East China.)
Comment: Wolves in Sheeps' Clothing?
--------------
7. (C) Some officials at the investment seminar (for which
planning began long before the murder) appeared to be delighted
that the Party Secretary no longer is in the picture. In
particular, Yu Haiping, the zone's happy-go-lucky general
manager, seemed quite pleased to serve as the zone's official
representative and pose for photographs with investors. While
it is not surprising that a development zone seeking investors
would not advertise the murder of one of its leaders at an
investment seminar, the sequence of events from Li's murder on
March 9 to the investment seminar on April 10, taken together
with the indifferent reaction by seminar participants to Li's
murder, gives the appearance that: (1) Li was not well-loved by
those who worked for him, lending a degree of credence to the
view that he was engaged in corrupt practices, and (2) others in
the zone's leadership hierarchy are now benefiting from inking
21 new investment deals in the aftermath of Li's death.
CAMP