Sex Scandal in Chongqing (and more important news)

China is one of the largest and fastest growing economies in the world and (to an extent) the country that gave us Jacqui Chan (I’m totally going to watch Rush Hour now – Tim). At a time when the rest of the world, especially the Eurozone, is turning towards China to solve their (money) problems, China is having its own little personal troubles. The year 2012 is proving to be rich in political gossip.

The Bo Xilai Scandal

Bo Xilai was party secretary in Chongqing. In February, his right hand Wang Lijun sought refuge in the US consulate following a possible corruption investigation. In March, criticism mounted against Bo including from Wen Jiabao, the premier. In July, Bo’s wife Gu Kailai was charged with the murder of British businessman Neil Heywood and finally given a suspended death sentence. In September, Wang was tried in secret and sentenced to 15 years in jail, Bo was expelled from the Communist party and charged with corruption, abuse of power, maintaining improper sexual relationships and responsibility in relation to the murder.

The scandal has been perceived as politically motivated, and one of the rare times the party has washed its dirty laundry in public. Bo’s dismissal has come as a surprise: he was seen as a popular leader and up for promotion in the coming leadership succession. Bo had developed a policy model that comprised low-cost housing and welfare, a distribution of wealth, which differs from the government’s policy.

The scandal is still cloaked in mystery. Many question the official story of the murder, cyanide poisoning over a financial row, and claim that the Gu Kailai present at the trial was a look-a-like. The charges raised against Bo have also caused some difficulties to the party as it is seen that these could apply to a number of senior party members. Bo Xilai has not been seen since the spring.

The Japanese Islands Dispute

It all started when the private owners of Senkaku/Diaoyu islands sold them to Japan. Japan, China and Taiwan all lay territorial claims over the islands. Following the acquisition, pre-existing tensions escalated. Protests broke out in China; some Japanese goods are being boycotted and a Toyota has been attacked; a float of Taiwanese ships was pushed back by Japanese water cannons; 52,000 seats on flights between China and Japan have been cancelled and a bullet was sent to the Chinese embassy in Tokyo.

Concerns that a military conflict might ensue were not appeased by China launching its first aircraft carrier. Military action however does not seem to be on the agenda of either country, economic and industrial ties between the nations are too important. Meetings over the row have begun on the side-lines of the UN General Assembly, although it is difficult to see how either country can change its position with both Japan and China undergoing political change over the next months.

The Ferrari Crash

In March, a Ferrari was involved in a big car crash in Beijing. Within hours, photos of the crash had been removed from the internet and searches for the word “Ferrari” had been blocked. More recently, there have been claims that the driver was the son of Ling Jihua, a prominent member of the ruling party. Ling Jihua has been repositioned from head of the party’s general office of the central committee to head of the united front work department in September, likely preventing a promotion to the Politburo during the upcoming leadership succession. Critics believe this may be linked to the Ferrari incident. The Party has been strongly criticised and scrutinised over the lifestyle and riches of its leading members. Revelations regarding the lavish lifestyle of Bo Xilai, his relatives, and other Party members has been a great embarrassment amid growing inequalities in the country.

Leadership Succession

On 8th November 2012, the 18th Chinese Communist Party congress will start and the new leadership will be announced. Successions in leaderships have only occurred on three previous occasions, with the first two resulting in the Cultural Revolution and the Tiananmen Square massacre. The general consensus is that Xi Jinping will succeed as president and Li Keqiang as premier. The succession is much less clear concerning the remaining members of the ruling Politburo Standing Committee. During the congress, the Party is expected to put on a show of unity and continuity, masking the divisions and factions within it. The European China Research and Advice Network does not expect any major shift in policy, with the new leadership focusing on growth and national interests. Xi Jinping has however suggested possible democratic reforms in the long term. Maintaining economic growth, controlling inflation, and keeping the population happy will be the main challenge. This change in power will shape the political landscape for the next ten years and have to deal with the world economic crisis, growing internal inequalities, territorial disputes, a massive economy, and the power that comes with it.