<<

CCCMMMYYYKKK Nxxx,2012-05-18,A,001,Bs-BK,E3Nxxx,2012-05-18,A,001,Bs-BK,E3Nxxx,2012-05-18,A,001,Bs-BK,E3

LateLateLate Edition Edition Edition C M Y K Nxxx,2012-05-18,A,001,Bs-BK,E3Today,Today,Today,anan an abundance abundance abundance of of sun, of sun, sun, nice, nice, nice, highhighhigh 73. 73. 73. Tonight,Tonight, Tonight,clear,clear,clear, cool cool cool once once once again,again,again, low low low 53. 53. 53.Tomorrow, Tomorrow, Tomorrow,plentyplentyplenty of of of sunshine,sunshine,sunshine, pleasant, pleasant, pleasant, a a bit abit bit warmer, warmer, warmer, Late Edition Today, an abundance of sun, nice, highhighhigh 79. 79. 79. Weather Weather Weather map, map, map, Page Page Page B16. B16. B16. high 73. Tonight, clear, cool once again, low 53. Tomorrow, plenty of sunshine, pleasant, a bit warmer, high 79. Weather map, Page B16. VOL.VOL.VOL. CLXI CLXI CLXI . . . . No.. No. . No. 55,775 55,775 55,775 ©© 2012 2012© 2012 The The TheNew New New York York York Times Times Times NEWNEWNEW YORK, YORK, YORK, FRIDAY, FRIDAY, FRIDAY, MAY MAY MAY 18, 18, 18, 2012 2012 2012 $2.50$2.50$2.50 VOL. CLXI . . No. 55,775 © 2012 The New York Times NEW YORK, FRIDAY, MAY 18, 2012 $2.50 ’ Using ChinaChinaChina ‘Princelings’‘Princelings’ ‘Princelings’ UsingUsing UsingFamily Ties to Gain Riches

Leaders’ Relatives Take Key Business Posts FamilyFamilyFamily TiesTies Ties toto to GainGain Gain RichesRiches Riches— Spoils System Poses Risk to Party

By DAVID BARBOZA and SHARON LaFRANIERE — The Hollywood who abused his power, even as Leaders’Leaders’Leaders’ RelativesRelatives Relatives TakeTake Take KeyKey Key BusinessBusiness Businessstudio DreamWorksPostsPosts Posts Animation his family members accumulated recently announced a bold move a substantial fortune. to crack China’s tightly protected But evidence is mounting that film industry: a $330 million deal the relatives of other current and ——— SpoilsSpoils Spoils SystemSystem System PosesPoses Poses RiskRisk Risk toto to PartyPartyto Party create a Shanghai animation former senior officials have also studio that might one day rival amassed vast wealth, often play- the California shops that turn out ing central roles in businesses hits like “Kung Fu Panda” and closely entwined with the state, “The Incredibles.” including those involved in fi- ByBy ByDAVID DAVID DAVID BARBOZA BARBOZA BARBOZA and and and SHARON SHARON SHARON LaFRANIERE LaFRANIERE LaFRANIEREWhat DreamWorks did not nance, energy, domestic security, showcase, however, was one of telecommunications and enter- SHANGHAISHANGHAISHANGHAIBy DAVID — — The —The BARBOZA The Hollywood Hollywood Hollywood and whoSHARONwhowho abused abused abused LaFRANIERE his his his power, power, power,its newest even even — evenand most as as important as tainment. Many of these so-called — Chinese partners: Jiang Mian- princelings also serve as middle- studiostudiostudio DreamWorks DreamWorks DreamWorks Animation Animation Animationhishishis family family family members members members heng,accumulated accumulated accumulated the 61-year-old son of Jiang men to a host of global companies SHANGHAI But evidenceZemin, is themounting former Communist thatand wealthythe relativestycoons eager to do recentlyrecentlyrecently announcedannounced announced aa boldbolda bold movemove moveaa substantial substantiala substantial fortune. fortune. fortune.Party leader and the most power- business in China. he Hollywood studio DreamWorks Ani- ofButBut otherBut evidenceevidence evidence current isis mountingismountingful andmounting political former kingmaker thatthat that of seniorChina’s “Whenever officials there ishave something toto crack tocrack crack China’s China’s China’s tightly tightly tightly protected protected protected last two decades. profitable that emerges in the DADO RUVIC/REUTERS mation recentlyfilmfilm filmannounced industry: industry: industry: a a $330 $330aa $330 bold million million million move deal deal deal thethealsothe relatives relatives relativesamassed of of other ofother othervast current Thecurrent youngercurrentwealth, Mr.and and Jiang’sand often coups playingeconomy, they’ll central be at the front of Remembering a Horror have included ventures with the queue,” said Minxin Pei, an toto to create create create a a Shanghai a Shanghai Shanghai animation animation animationformerformerformer senior senior senior officials officials officialsMicrosoft have have have and also Nokia also also and over- expert on China’s leadership and Mejra Dzogaz, whoto lostcrack her husband, China’s three sons tightly and a grandson protected to the 1995 Srebrenica film in massacre,- inroles Potocari, in Bosnia. businesses In The sight of a closely clutch of state-backed entwinedprofessor ofwith government the at Hague,T it was Day 2 of the genocide trial of studioRatkostudiostudio Mladic, that that who that mightled might the might military one one oneunit day daythat day carried rival rival rival out theamassedamassed massacre.amassed Page vast vast A12. vast wealth, wealth, wealth,investment often often often vehiclesplay- play- play- that have Claremont McKenna College in dustry: a $330 millionthethe dealthe California California California to create shops shops shops a that thatShanghai that turn turn turn out out out ingingstate,ing central central central including roles roles roles in inmajor those in businesses businesses interests businesses involved in telecommuni- inCalifornia. finance, “They’ve ener gotten - into cations, semiconductors and con- private equity, state-owned en- animation studio thathitshits hitsmight like like like “Kung “Kung one “Kung Fuday Fu Fu Panda” Panda” rival Panda” the and and and closelycloselygy,closely domestic entwined entwined entwined security, with with struction with the the projects. the state, state,telecommunications state, terprises, natural resources and — Magnate Steps Cataloging Wounds of War to Help Heal Them That a dealmaker like Mr. you name it.” California shops that“The “Theturn“The Incredibles.” Incredibles.” out Incredibles.” hits like “Kung Fu includingincludingentertainment.including those those those involved involved JiangMany involved would be inof in included in fi-these fi- fi- in an un- so-calledFor example, prince Wen Yunsong,- His database is one part of a and diseases took which soldiers dertaking like that of Dream- the son of Prime Minister Wen WhatWhatWhat DreamWorks DreamWorks DreamWorks did did did not not notnance,nance,nance, energy, energy, energy, domestic domestic domestic security, security, security, Jiabao, heads a state-owned com- Into 2012 Fray vast store of information re- off duty, and for how long. He Works is almost a given in to- Panda” and “The Incredibles.” lings also serve as middlemen topany a hostthat boasts of that glob it will soon- By C. J. CHIVERS corded about the experiences of mappedtelecommunicationstelecommunicationstelecommunications where on a human body day’s and and China. and enter- enter-Analysts enter- say this is showcase,showcase,showcase, however, however, however, was was was one one one of of of be Asia’s largest satellite commu- On Wild Pitch FORT CAMPBELL, Ky. — To American combatants. But there bullets most often struck. how the Communist Party shares What DreamWorks did not showcase, how- tainment.tainment.altainment. companies Many Many Many of of andthese ofthese these wealthyso-called so-called so-called tycoonsnications eager operator. Presidentto do Hu those unfamiliaritsits itsnewest newest with newest a battle- — — and —andare and concernsmost most most important that important important the potential A year after he returned to the the spoils, allowing the relatives of senior leaders to cash in on one Jintao’s son, Hu Haifeng, once field’s bleak routine, Col. Michael lessons from such data could be states, Colonel Wirt and his data- ever, was one of its —newest— Chinese —Chinese Chinese — partners: partners: and partners: most Jiang Jiang Jiang impor Mian- Mian- Mian-- princelingsprincelingsbusinessprincelings also alsoin also China. serve serve serveof the as as biggest asmiddle- middle- middle-economic booms in managed a state-controlled firm By JIM RUTENBERG D. Wirt’s database could be read lost, because no one has yet base point to the promise and ob- history. that held a monopoly on security and JEFF ZELENY like a catalogheng,heng, heng, of horrors. the the the 61-year-old In61-year-old it,61-year-oldbrought the son informationson son of of Jiang ofJiang together Jiangstaclesmenmenmen related to to a toa tohost hosta studying host of of moreglobal ofglobal global companies companies companies tant — Chinesemore partners: than 500 American Jiang soldiers andMianheng, made it fully cohere. the “Whenever Asthere the scandal is oversomething scanners profitable used in China’s air- Joe Ricketts, an up-by-the- than a decade of American war. ports, shipping ports and subway are subjectedZemin,Zemin, Zemin, to characteristic the the the former former Colonel former Wirt Communist Communist was Communist a brigade sur- andandand wealthy wealthy wealthy tycoons tycoons tycoonscontinues eager eager eager to reverberate,to to do todo do the au- bootstraps billionaire whose var- The amassed information on stations. And in 2006, Feng Shao- 61-year-old son formsof Jiang of violence Zemin, of the Afghan thegeon formerfrom the 101st AirborneCom Di-- thorities here are eager to paint ied holdings include a name- combatantsthat emerges over 10 years in the economy, they’lldong, the son-in-law be at of Wuthe Bang- war. PartyPartyParty leader leader leader and andvision and the the during the most most themost American-ledpower- power- power-businessbusinessbusiness in in China. inChina. China.Mr. Bo, a fallen leader who was brand brokerage firm in Omaha, amounts to the most detailed guo, the party’s second-ranking munist Party leaderFaces are andsmacked thewith shrap- mosteffort powerfulin 2010 and 2011 to dislodgepo- front of the queue,”one of 25 memberssaid ofMinxin China’s rul- Pei, an expert a baseball team in Chicago, herds fulful fulpolitical political political kingmaker kingmaker kingmaker of of China’s ofChina’s China’s “WheneverContinued“Whenever“Whenever on Page A3there there there ising is Politburo, something issomething something as a rogue operator Continued on Page A14 of bison in Wyoming and a start- nel, legs are blasted away near the Taliban from their rural up news Web site in New York, knees, bulletslastlastlast two passtwo two decades. throughdecades. decades.stronghold along the Arghandab profitableprofitableprofitable that that that emerges emerges emerges in in in the the the liticalDADO DADOkingmakerDADO RUVIC/REUTERS RUVIC/REUTERS RUVIC/REUTERS of China’s last two decades. on China’s leadership and professor of govern- wanted to be a player in the 2012 young men’s abdomens. Vehicles River. His database was part offi- roll over, crushingTheTheThe bones.younger younger younger Ear- cial Mr. Mr. record,Mr. Jiang’s Jiang’s Jiang’s part personal coups coups coups re- economy,economy,economy, they’ll they’ll they’ll be be beat at the atthe the front front front of of of election. On The Thursday younger he was, Mr. Jiang’s coups have in- ment at Claremont McKenna College in Califor- though not in the way he had in- drums rupture.havehavehave Digits included included areincluded sev- search venturesventures project. ventures with with withAthethe Museum,the queue,” queue,” queue,” said said Reborn, said Minxin Minxin Minxin Pei,Remains Pei, Pei, an an an Preferred Style: RememberingRememberingRemembering a a Horror aHorror Horror tended.cluded venturesered. with Microsoft andHis commander Nokia required and him nia. “They’ve gotten into private equity, state- Word that Mr. Ricketts had Dozens Microsoft ofMicrosoft soldiersMicrosoft die. Hun- and and and to Nokiakeep Nokia Nokia tabs on and ailing and and and over- over- wound- over-expertexpertexpert on on onChina’s China’s China’s leadership leadership leadership and and and MejraMejraMejra Dzogaz,Dzogaz, Dzogaz, whowho who lostlost lost herher her husband,husband, husband, threethree three sonssons sons andand and aa grandsonagrandson grandson toto to thethe the 19951995 1995 SrebrenicaSrebrenica Srebrenica massacre,massacre, massacre, inin in Potocari,Potocari, Potocari,considered bankrolling Bosnia.Bosnia. Bosnia. a $10 Inmil-In In TheThedreds The more begin journeys home, ed soldiers, and to inform him of True to Its Old Self, Only Better Don’t Flaunt It lion advertisingoversight campaign of linking a clutchsometimessight toofsight treatmentsight state-backed of of that a of a clutchwill aclutch clutchtheir ofprognosis of investment state-backed of state-backed state-backed and whereabouts professorprofessorownedprofessor enterprises, of of of government government government natural at at at resources — you Hague,Hague,Hague, it it was wasit was Day Day Day 2 2 of of2 theof the the genocide genocide genocide trial trial trial of of Ratkoof Ratko Ratko Mladic, Mladic, Mladic, who who who led led led the the the military military military unit unit unit that that that carried carried carried out out out the the the massacre. massacre. massacre.President Page ObamaPage Page toA12. A12. the A12. incendi- last the rest of their lives. in the medical system. ClaremontClaremontClaremont McKenna McKenna McKenna College College College in in in In Silicon Valley ary vehicles race-infused statements that of haveEach wasmajorinvestmentinvestment listedinvestment in a smallinterests but vehicles vehicles vehiclesTo this, in Colonel thattelecom that Wirt that added have have have lay-- name it.” his former pastor, the Rev. Jere- meticulous computer entry by ers of information. He document- California.California.California. “They’ve “They’ve “They’ve gotten gotten gotten into into into Colonel Wirt,majormajor amajor doctor interests interestsintent interests on ed which in in in telecommuni- telecommuni-weapons telecommuni- caused which miahmunications, A. Wright Jr., brought semiconductors and construction For example, Wen Yunsong, Bythe SOMINI sonSENGUPTA of waves of denunciation from Mitt documentingcations,cations, howcations, soldiers semiconductors semiconductors weresemiconductorswounds. He tried and and to and record con- con- con- in- privateprivateprivate equity, equity, equity, state-owned state-owned state-owned en- en- en- Romney,projects. the Obama campaign wounded or sickened, how they creased or decreased risk factors Prime Minister , headsMENLO PARK,a state- Calif. — and much of the rest of the politi- were treatedstructionstruction andstruction how they projects. fared.projects. projects.— whether the victim was wear- terprises,terprises,terprises, natural natural natural resources resources resources — — — Wealth is here if you know where cal world. That a dealmakerFor those seekingThat Thatlike toThat understand aMr. a adealmaker dealmaker Jiang dealmakering larger or wouldsmaller like like body like Mr.armor,be Mr. Mr. youyouownedyou name name name it.”company it.” it.” that boasts thatto it find will it. soon be MagnateMagnateMagnate StepsSteps Steps CatalogingCatalogingCataloging WoundsWounds Wounds ofof of WarWar War toto to HelpHelp Help HealHeal HighlightingHeal the Them perilsThem Them of mix- war and how best to survive it, whether a bomb-sniffing dog was Fabulous home theaters are ing partisan politics and corpo- the doctor on his own initiative present, when a tourniquet was ForForFor example, example, example, Wen Wen Wen Yunsong, Yunsong, Yunsong, tucked into the basements of rate included citizenship, the reverbera-in an createdundertaking anJiang Jiang evidence-basedJiang would would would like tool be be applied. thatbeincluded included included of Dreamin in an inan anun- un- -un- Asia’s largest satellite communicationsplain suburban houses.opera Bespoke- HisHisHis database database database is is oneis one one part part part of of of a a aandandand diseases diseases diseasesContinued took took took onwhich which Page which A20 soldiers soldiers soldiersand a possibledertakingdertaking model.dertaking like like like He that that recorded that of of which of Dream- Dream- Dream-accidents thethethe son son son of of ofPrime Prime Prime Minister Minister Minister Wen Wen Wen jeans that start at $1,200 can be Works is almost a given in today’s China. An- Jiabao,Jiabao,tor.Jiabao, President heads heads heads a a state-owned state-owneda Hustate-owned Jintao’s com- com- com- son, Hudetected Haifeng, only by a tinyonce red logo IntoIntoInto 20122012 2012 FrayFray Fray vastvastvast store store store of of of information information information re- re- re-offoff off duty, duty, duty, and and and for for for how how how long. long. long. He He HeWorksWorksWorks is is almostis almost almost a a given a given given in in in to- to- to- on the button. The hand-painted ByBy ByC. C. J.C. J. CHIVERS CHIVERS J. CHIVERS alysts say this is how the Communist Party panypanymanagedpany that that that boasts boasts boastsa state-controlled that that that it it will itwill will soon soon soon firm thatItalian bicycles held that a flash mo across- cordedcordedcorded about about about the the the experiences experiences experiences of of ofmappedmappedmapped where where where on on ona a human humana human body body DONNAbody SUMMER,day’sday’sday’s China.1948-2012China. China. AnalystsAnalysts Analysts saysay say thisthis this isis is Silicon Valley on Saturday morn- bebe Asia’sbe Asia’s Asia’s largest largest largest satellite satellite satellite commu- commu- commu- ings have become the new Ferra- shares the spoils, allowinghowhowhow the the the Communist Communistthe Communist relatives Party Party Party ofshares shares sharesse- nopoly on security FREDscanners R. CONRAD/THE NEW YORK used TIMES in China’s air- OnOnOn WildWild Wild PitchPitch Pitch FORTFORTFORT CAMPBELL, CAMPBELL, CAMPBELL, Ky. Ky. Ky. — — — To To ToAmericanAmericanAmerican combatants.combatants. combatants. ButBut But therethere therebulletsbulletsbullets most most most often often often struck. struck. struck. ri — and only the cognoscenti thosethosethose unfamiliar unfamiliar unfamiliar with with with a a battle- a battle- battle-areareare concerns concerns concerns that that that the the the potential potential potential Thenior Queen leaders of toDisco, cash intheWhothe theon spoils, spoils, one spoils,Transcended allowingof allowing allowingthe biggest the the the relativesthe relatives relatives eco Era- Thenicationsnicationsports, newnications Barnes shipping operator.Foundation, operator. operator. in President a Presidentportsnew President shell inand Philadelphia. Hu Hu subway Hu could stations. imagine that And they cost AA year Ayear year after after after he he hereturned returned returned to to the tothe the Jintao’sJintao’sJintao’s son, son, son, Hu Hu Hu Haifeng, Haifeng, Haifeng, once once once more than $20,000. field’sfield’sfield’s bleak bleak bleak routine, routine, routine, Col. Col. Col. Michael Michael Michaellessonslessonslessons from from from such such such data data data could could could be be be ofof senior ofsenior senior leaders leaders leaders“She to toWorks cash tocash Hardcash in infor on theinon Money.”onone one one Even at Facebook, ground zero states,states,states, Colonel Colonel Colonelnomic Wirt Wirt Wirt boomsand and and his his his data- indata- data-history. In the late ’70s she had three dou- PHILADELPHIAin 2006, —Feng The Shaodong,tendance and public hoursthe im- son-in-lawfor the nouveau techof riche,Wu peer By JON PARELES ofof the ofthe the biggest biggest biggest economic economic economic booms booms booms in in inmanagedmanagedmanaged a a state-controlled astate-controlled state-controlled firm firm firm ByBy ByJIM JIM JIM RUTENBERG RUTENBERG RUTENBERG D.D. D.Wirt’s Wirt’s Wirt’s database database database could could could be be beread read readlost,lost,lost, because because because no no no one one one has has has yet yet yetbasebasebase point point point to to the tothe the promise promise promise and and and ob- ob- ob- ble albums in a row that reached Barnes Foundation’s move from posed by zoning restrictions — pressure dictates that consump- Donna Summer,As the the multi-scandal history.overhistory.history. Bo XilaiNo. 1,continues and each sold more thanto a suburbanthatthatBangguo,that held Philadelphiaheld held a a monopoly monopolya to themonopolythe cen- party’sannounced on on onsecurity security plans security second-ranking to relocate. tion be kept on theofficial, down low. andandand JEFF JEFF JEFF ZELENY ZELENY ZELENY likelikelike a a catalog a catalog catalog of of of horrors. horrors. horrors. In In In it, it, it,broughtbroughtbrought the the the information information information together together togetherstaclesstaclesstacles related relatedmillion-selling related to to singer studyingto studying studying and song- more more more million copies. ter of the city caused art lovers Many people, including a group “The message here is, ‘Keep writer whose hits captured both Her combination of a church- scannersscannersscanners used used used in in in China’s China’s China’s air- air- air- moremoremore than than than 500 500 500 American American American soldiers soldiers soldiersandandand made made made it it fully fullyit fully cohere. cohere. cohere. reverberate, the authoritiesAsAs As the the the scandal scandalhere scandal are over over overeager Bo Bo Bo Xilai Xilai to Xilai lotshelped of worry. Merrill Lynchthat sued to stop win the move, a deal were shippingto arrange product,’” said the a Face- JoeJoeJoe Ricketts, Ricketts, Ricketts, an an an up-by-the- up-by-the- up-by-the- thanthanthan a a decade decadea thedecade giddy of of hedonism American ofAmerican American of the 1970s war. war. war. rooted voice and up-to-the- ports,ports,Devoteesports, shipping ofshipping this shipping great polyglot ports ports portssure and and that and subway itsubway could subway only desecrate book executive who requested areareare subjected subjected subjected to to to characteristic characteristic characteristic ColonelColonelColonel Wirt Wirt Wirt was was was a a brigade brigadea brigade sur- sur- sur- discopaint era and theMr. feisty Bo, female a fallencontinuescontinues leadercontinues to whoto reverberate, toreverberate,minute reverberate, was dance one beats the the wasof the aau- 25 au- tem- au- $22 collection,billion heavy public with this singularlisting institution. of the giantanonymity state-run while discussing in- bootstrapsbootstrapsbootstraps billionaire billionaire billionaire whose whose whose var- var- var- TheTheThe amassed amassed solidarity amassed of the information informationearly information 1980s, died on on onthoritiesthoritiesthorities here here here areplate are are for eager eager 1970s eager disco, to to paintto and, paint paint with ROBERTAstations.stations.stations.Renoir, And And Cézanne And in in and 2006, in2006, 2006, Others,Feng Feng Feng myself Shao- Shao- included,Shao- did ternal matters. “If someone buys formsformsforms of of violenceof violence violence of of theof the the Afghan Afghan Afghangeongeongeon from from from the the the 101st 101st 101st Airborne Airborne Airborne Di- Di- Di- on Thursday at her home in Na- her producers Giorgio Moroder Matisse, which the not object to the move per se, but a fancy car and posts a picture of members of China’s ruling Politburo,and Pete Bellotte,as a sherogue pioneered iediedied holdings holdings holdings include include include a a aname- name- name- combatantscombatantscombatantsples, Fla. She over over was over 63. 10 10 10 years years years dong,SMITHdong,bankdong, omnivorethe the I.C.B.C., the son-in-law son-in-law art son-in-law shopper in feltof ofwhat that Wu ofWu faithfully Wu Bang- Bang-became Bang- reproducing theit, theyworld’s get ridiculed larg and berat-- Mr.Mr.Mr. Bo, Bo, Bo, a a fallen fallena fallenelectronic leader leader leader dance who whomusic who with was was wasthe war.war.war. visionvisionvision during during during the the the American-led American-led American-led The cause was cancer, her pub- Albert C. Barnes the old Barnes in the new space, ed.” brandbrandbrand brokeragebrokerage brokerage firmfirm firm inin Omaha,inOmaha, Omaha, amountsamountsamounts licist, to to Brian to the the Edwards, the most most most said. detailed detailed detailed synthesizer pulse of “I Feel guo,guo,ARTguo, theamassed the the party’s party’s between party’s 1912 second-ranking second-ranking as second-ranking promised by the trustees, was operator who abusedoneone hisone of of power, 25 of25 members25 members members even of of as China’s ofChina’s his China’s fam rul- rul- -rul-REVIEWest initial public stock offering. The company disclosed on FacesFacesFaces are are are smacked smacked smacked with with with shrap- shrap- shrap-effortefforteffort in in 2010 in2010 2010 and and and 2011 2011 2011 to to dislodge todislodge dislodge Love” in 1977, a sound that per- and his death in 1951, a terrible idea. To us it seemed aa baseball baseballa baseball team team team in in Chicago, inChicago, Chicago, herds herds herds With her doe eyes, cascade of MICHAEL OCHS ARCHIVES/GETTY IMAGES Thursday that on the eve of its hair and sinuous dance moves, vades 21st-century pop. Her own were appalled by the idea. time to at least loosen up thethethe Taliban Taliban Taliban from from from their their their rural rural rural ContinuedContinuedContinuedily members on on onPage Page Page A3 A3 accumulated A3Donna Summeringinging Politburo, Politburo,in 1978.Politburo, a substantial as as aas a rogue roguea rogue fortune. operator operator operator ContinuedContinuedMuchContinued of on onthe onPage Page Pageincome A14 A14 A14 earned stockby market families debut it was of invit- nel,nel,nel, legs legs legs are are are blastedblasted blasted awayaway away nearnear near Ms. Summer became the queen recordings have been sampled Barnes spent years obsessively Barnes’s straitjacketed displays, ofof bison ofbison bison in in Wyoming inWyoming Wyoming and and and a a start- start-a start- ing employees to a hackathon, or knees,knees,knees, bullets bullets bullets pass pass pass through through throughstrongholdstrongholdstronghold along along along the the the Arghandab Arghandab Arghandab of disco — the music’s glamorous by, among others, Beyoncé, the arranging his installation cheek- wonderful as they often were. upup up news news news Web Web Web site site site in in Newin New New York, York, York, public face — as well as an idol She riffled through styles as di- Pet Shop Boys, Justice and Nas. by-jowl in the mansion in Lower And why go to the trouble of mov- Continued on Page B7 youngyoungyoung men’s men’s men’s abdomens. abdomens. abdomens. Vehicles Vehicles VehiclesRiver.River.River. His His His database database database was was was part part part offi- offi- offi- with a substantial gay following. verse as funk, electronica, rock Ms. Summer won Grammy Merion, Pa., that he built for the ing the collection to a more acces- wantedwantedwanted to to be tobe bea a player playera player in in the inthe the 2012 2012 2012 Her voice, airy and ethereal or and torch song as she piled up 14 Awards for dance music, R&B, purpose and opened in 1925, and sible location when the galleries election.election.election. On On On Thursday Thursday Thursday he he he was, was, was,rollrollroll over, over, over, crushing crushing crushing bones. bones. bones. Ear- Ear- Ear-cialcialcial record, record, record, part part part personal personal personal re- re- re- brightly assertive, sailed over Top 10 singles in the United rock and gospel. Her recorded he stipulated that, after he died, it were not going to be any bigger? A RICH START Facebook sold 421 drumsdrumsdrums rupture. rupture. rupture. Digits Digits Digits are are are sev- sev- sev-searchsearchsearch project. project. project. dance floors and leapt from ra- States, among them “Love to catalog spans the orgasmic should remain exactly as it was. And yet the new Barnes proves million shares for $38 each, rais- thoughthoughthough not not not in in the inthe the way way way he he hehad had had in- in- in- AAA Museum,Museum, Museum,dios from the mid-’70s well into Reborn,Reborn, Reborn,Love You Baby,” “Bad Girls,”RemainsRemains Remainsmoans of her first hit, “Love to PreferredPreferredIn 2002Preferred the foundation’s board Style:Style:all ofStyle: us wrong. Against all odds, ing $16 billion and valuing the tended.tended.tended. ered.ered.ered. HisHisHis commander commander commander required required required him him him the ’80s. “Hot Stuff,” “Last Dance” and Continued on Page A23 — constrained by limits on at- Continued on Page A18 company at $104 billion. PAGE B1 WordWordWord that that that Mr. Mr. Mr. Ricketts Ricketts Ricketts had had had DozensDozensDozens of of of soldiers soldiers soldiers die. die. die. Hun- Hun- Hun-toto keep tokeep keep tabs tabs tabs on on onailing ailing ailing and and and wound- wound- wound- consideredconsideredconsidered bankrolling bankrolling bankrolling a a $10 $10a $10 mil- mil- mil-dredsdredsdreds more more more begin begin begin journeys journeys journeys home, home, home,eded edsoldiers, soldiers, soldiers, and and and to to inform toinform inform him him him of of of TrueTrueTrueINTERNATIONAL toto to ItsIts A4-14 Its Old Old Old Self,BUSINESSSelf, Self, DAY B1-9 OnlyOnly Only BetterBetter BetterSPORTSFRIDAY B10-16 Don’tDon’tDon’t FlauntFlaunt Flaunt ItIt It lionlionlion advertising advertising advertising campaign campaign campaign linking linking linkingsometimessometimessometimes to to treatment totreatment treatment that that that will will willtheirtheirtheir prognosis prognosis prognosis and and and whereabouts whereabouts whereabouts Anger Rises After Drug Sweep Senate Clears Fed Nominees A Coach of Few Words lastlastlast the the the rest rest rest of of their oftheir their lives. lives. lives. inin the inthe the medical medical medical system. system. system. Residents of the isolated Mosquito The Senate voted to confirm two nomi- Win or lose, John PresidentPresidentPresident Obama Obama Obama to to theto the the incendi- incendi- incendi- Coast of Honduras have burned down nees for the Federal Reserve Board of TortorellaInIn ofIn the Silicon Silicon Silicon Valley Valley Valley aryaryary race-infused race-infused race-infused statements statements statements of of of EachEachEach waswas was listedlisted listed inin aina smallsmalla small butbut but ToTo Tothis, this, this, Colonel Colonel Colonel Wirt Wirt Wirt added added added lay- lay- lay- government buildings and are demand- Governors, overcoming Republican ob- Rangers conducts ing that American drug agents leave the jections and bringing the seven-mem- postgame news hishishis former former former pastor, pastor, pastor, thethe the Rev. Rev. Rev. Jere-Jere- Jere-meticulousmeticulousmeticulous computer computer computer entry entry entry by by byersersers of of information. ofinformation. information. He He He document- document- document- area immediately. PAGE A5 ber board to full strength for the first conferences that miahmiahmiah A. A. A. Wright Wright Wright Jr., Jr., Jr., brought brought broughtColonelColonelColonel Wirt, Wirt, Wirt, a a doctor adoctor doctor intent intent intent on on oneded ed whichwhich which weaponsweapons weapons causedcaused caused whichwhich which time since 2006. PAGE B3 are short — one NEW YORK A24-28 lasted 16 secondsByBy BySOMINI SOMINI SOMINI SENGUPTA SENGUPTA SENGUPTA waveswaveswaves ofof denunciationofdenunciation denunciation fromfrom from MittMitt Mittdocumentingdocumentingdocumenting how how how soldiers soldiers soldiers were were werewounds.wounds.wounds. He He He tried tried tried to to to record record record in- in- in- Bribery Case May Widen — antagonistic and Mary Kennedy Is Mourned Wal-Mart suggested in a regulatory fil- invariablyMENLOMENLO MENLOdevoid PARK, PARK, PARK, Calif. Calif. Calif. — — — Romney,Romney,Romney, the the the Obama Obama Obama campaign campaign campaignwoundedwoundedwounded or or or sickened, sickened, sickened, how how how they they theycreasedcreasedcreased or or decreasedor decreased decreased risk risk risk factors factors factors Robert F. Kennedy Jr. said his es- ing that the scope of an internal investi- of revealing re- andandand much much much of of the ofthe the rest rest rest of of the ofthe the politi- politi- politi-werewerewere treated treated treated and and and how how how they they they fared. fared. fared.—— whether —whether whether the the the victim victim victim was was was wear- wear- wear- tranged wife had “a lot of agony” in her gation into bribery accusations had wid- sponses.WealthWealthWealth PAGE is B13is here ishere here if if you youif you know know know where where where life. She had been suffering from alco- ened beyond the huge retailer’s subsid- toto find tofind find it. it. it. calcal calworld. world. world. ForForFor thosethose those seekingseeking seeking toto understandtounderstand understandinginging larger larger larger or or smalleror smaller smaller body body body armor, armor, armor, holism and depression. PAGE A25 iary in Mexico. PAGE B1 WEEKEND C1-32 HighlightingHighlightingHighlighting thethe the perilsperils perils ofof mix-ofmix- mix-warwarwar and and and how how how best best best to to tosurvive survive survive it, it, it,whetherwhetherwhether a a bomb-sniffing bomb-sniffinga bomb-sniffing dog dog dog was was was FabulousFabulousFabulous home home home theaters theaters theaters are are are Already a Crowd Pleaser NATIONAL A16-22 The True Stars at Cannes inginging partisan partisan partisan politics politics politics and and and corpo- corpo- corpo-thethethe doctor doctor doctor on on on his his his own own own initiative initiative initiativepresent,present,present, when when when a a tourniquet atourniquet tourniquet was was was A month before his planned walk across If the movies that win acclaimtuckedtuckedtucked at into into into the the the basements basements basements of of of Niagara Falls, Nik Wallenda, a descend- Edwards Case in Jury’s Hands France’s Cannes Film Festival have lit- rateraterate citizenship, citizenship, citizenship, the the the reverbera- reverbera- reverbera-createdcreatedcreated an an an evidence-based evidence-based evidence-based tool tool toolapplied.applied.applied. ant of the Flying A jury began deliberating the fate of the tle impact on the box office,plainplain plainthey remainsuburban suburban suburban houses. houses. houses. Bespoke Bespoke Bespoke ContinuedContinuedContinued on on onPage Page Page A20 A20 A20 andandand a a possible possiblea possible model. model. model. HeHeHe recorded recorded recorded which which which accidents accidents accidents Wallendas family former presidential candidate John Ed- influential, and for goodjeansjeans reason.jeans PAGE that that C1 that start start start at at at $1,200 $1,200 $1,200 can can can be be be of circus perform- wards. His lawyer argued that he com- ers, practices in detecteddetecteddetected only only only by by by a a tiny tinya tiny red red red logo logo logo mitted a wrong, but did not commit a EDITORIAL, OP-ED A30-31 the town twice a crime. PAGE A16 onon on the the the button. button. button. The The The hand-painted hand-painted hand-painted day, across the David Brooks PAGE A31 street from a mini- Details Released in Killing ItalianItalianItalian bicycles bicycles bicycles that that that flash flash flash across across across DONNADONNADONNA SUMMER, SUMMER, SUMMER, 1948-2012 1948-2012 1948-2012 mart, with dozens Police tried frantically to save Trayvon of onlookers and a Martin after he was shot by a neighbor- SiliconSiliconSilicon Valley Valley Valley on on onSaturday Saturday Saturday morn- morn- morn- hot dog stand near- hood watch volunteer, documents re- U(D54G1D)y+$!#!\!=!$ingsingsings have have have become become become the the the new new new Ferra- Ferra- Ferra- by. PAGE A24 leased in the caseFREDFRED show.FRED R. R. CONRAD/THE CONRAD/THER. CONRAD/THEPAGE A16 NEW NEW NEW YORK YORK YORK TIMES TIMES TIMESriri ri — — — and and and only only only the the the cognoscenti cognoscenti cognoscenti TheTheThe QueenQueen Queen ofof of Disco,Disco, Disco, WhoWho Who TranscendedTranscended Transcended thethe the EraEra EraTheTheThe new new new Barnes Barnes Barnes Foundation, Foundation, Foundation, in in ain a new newa new shell shell shell in in Philadelphia. inPhiladelphia. Philadelphia. couldcouldcould imagine imagine imagine that that that they they they cost cost cost moremoremore than than than $20,000. $20,000. $20,000. “She“She“She Works Works Works Hard Hard Hard for for forthe the the Money.” Money.” Money.” EvenEvenEven at at Facebook, atFacebook, Facebook, ground ground ground zero zero zero InIn theIn the the late late late ’70s ’70s ’70s she she she had had had three three three dou- dou- dou- PHILADELPHIAPHILADELPHIAPHILADELPHIA — — The —The The tendancetendancetendance and and and public public public hours hours hours im- im- im- forfor for the the the nouveau nouveau nouveau tech tech tech riche, riche, riche, peer peer peer ByBy ByJON JON JON PARELES PARELES PARELES blebleble albums albums albums in in a ina row rowa row that that that reached reached reachedBarnesBarnesBarnes Foundation’s Foundation’s Foundation’s move move move from from from posedposedposed by by byzoning zoning zoning restrictions restrictions restrictions — — — pressurepressurepressure dictates dictates dictates that that that consump- consump- consump- DonnaDonnaDonna Summer, Summer, Summer, the the the multi- multi- multi- No.No.No. 1, 1, and 1,and and each each each sold sold sold more more more than than than a a asuburbansuburbansuburban Philadelphia Philadelphia Philadelphia to to the tothe the cen- cen- cen-announcedannouncedannounced plans plans plans to to relocate. torelocate. relocate. tiontiontion be be keptbe kept kept on on onthe the the down down down low. low. low. million-sellingmillion-sellingmillion-selling singer singer singer and and and song- song- song- millionmillionmillion copies. copies. copies. terterter of of the ofthe the city city city caused caused caused art art art lovers lovers lovers ManyManyMany people, people, people, including including including a a group groupa group “The“The“The message message message here here here is, is, is, ‘Keep ‘Keep ‘Keep writerwriterwriter whose whose whose hits hits hits captured captured captured both both both HerHerHer combination combination combination of of of a a church- achurch- church-lotslotslots of of worry. ofworry. worry. thatthatthat sued sued sued to to stop tostop stop the the the move, move, move, were were were shippingshippingshipping product,’” product,’” product,’” said said said a a Face- aFace- Face- thethethe giddy giddy giddy hedonism hedonism hedonism of of the of the the 1970s 1970s 1970s rootedrootedrooted voice voice voice and and and up-to-the- up-to-the- up-to-the- DevoteesDevoteesDevotees of of this ofthis this great great great polyglot polyglot polyglot suresuresure that that that it it could couldit could only only only desecrate desecrate desecrate bookbookbook executive executive executive who who who requested requested requested discodiscodisco era era era and and and the the the feisty feisty feisty female female female minuteminuteminute dance dance dance beats beats beats was was was a a tem- atem- tem- collection,collection,collection, heavy heavy heavy with with with thisthisthis singular singular singular institution. institution. institution. anonymityanonymityanonymity while while while discussing discussing discussing in- in- in- solidaritysolidaritysolidarity of of the ofthe the early early early 1980s, 1980s, 1980s, died died died plateplateplate for for for 1970s 1970s 1970s disco, disco, disco, and, and, and, with with withROBERTAROBERTAROBERTARenoir,Renoir,Renoir, Cézanne Cézanne Cézanne and and and Others,Others,Others, myself myself myself included, included, included, did did did ternalternalternal matters. matters. matters. “If “If “Ifsomeone someone someone buys buys buys onon on ThursdayThursday Thursday atat herather her homehome home inin Na-inNa- Na- herherher producers producers producers Giorgio Giorgio Giorgio Moroder Moroder Moroder Matisse,Matisse,Matisse, which which which the the the notnotnot object object object to to the tothe the move move move per per per se, se, se,but but but aa fancy fancya fancy car car car and and and posts posts posts a a picture picturea picture of of of ples,ples,ples, Fla. Fla. Fla. She She She was was was 63. 63. 63. andandand Pete Pete Pete Bellotte, Bellotte, Bellotte, she she she pioneered pioneered pioneered SMITHSMITHSMITH omnivore omnivoreomnivore art art art shopper shopper shopper feltfeltfelt that that that faithfully faithfully faithfully reproducing reproducing reproducing it,it, it, they they they get get get ridiculed ridiculed ridiculed and and and berat- berat- berat- electronicelectronicelectronic dance dance dance music music music with with with the the the TheTheThe cause cause cause was was was cancer, cancer, cancer, her her her pub- pub- pub- AlbertAlbertAlbert C. C. Barnes C.Barnes Barnes thethethe old old old Barnes Barnes Barnes in in the inthe the new new new space, space, space, ed.”ed.”ed.” licist,licist,licist, Brian Brian Brian Edwards, Edwards, Edwards, said. said. said. synthesizersynthesizersynthesizer pulse pulse pulse of of of “I “I “I Feel Feel Feel ARTARTART amassedamassedamassed between between between 1912 1912 1912asas promisedas promised promised by by by the the the trustees, trustees, trustees, was was was REVIEWREVIEWREVIEW TheTheThe company company company disclosed disclosed disclosed on on on Love”Love”Love” in in 1977,in 1977, 1977, a a sound asound sound that that that per- per- per- andandand his his his death death death in in 1951, in1951, 1951, aa terrible terriblea terrible idea. idea. idea. To To Tous us itus it seemed seemed it seemed WithWithWith her her her doe doe doe eyes, eyes, eyes, cascade cascade cascade of of of MICHAELMICHAELMICHAEL OCHS OCHS OCHS ARCHIVES/GETTY ARCHIVES/GETTY ARCHIVES/GETTY IMAGES IMAGES IMAGES ThursdayThursdayThursday that that that on on on the the the eve eve eve of of of its its its hairhairhair and and and sinuous sinuous sinuous dance dance dance moves, moves, moves, vadesvadesvades 21st-century 21st-century 21st-century pop. pop. pop. Her Her Her own own ownwerewerewere appalled appalled appalled by by bythe the the idea. idea. idea. timetimetime to to at toat least atleast least loosen loosen loosen up up up DonnaDonnaDonna Summer Summer Summer in in 1978.in 1978. 1978. stockstockstock market market market debut debut debut it it was itwas was invit- invit- invit- Ms.Ms.Ms. Summer Summer Summer became became became the the the queen queen queen recordingsrecordingsrecordings have have have been been been sampled sampled sampledBarnesBarnesBarnes spent spent spent years years years obsessively obsessively obsessively Barnes’sBarnes’sBarnes’s straitjacketed straitjacketed straitjacketed displays, displays, displays, inginging employees employees employees to to a toa hackathon, hackathon,a hackathon, or or or ofof disco ofdisco disco — — the— the the music’s music’s music’s glamorous glamorous glamorous by,by, by, among among among others, others, others, Beyoncé, Beyoncé, Beyoncé, the the thearrangingarrangingarranging his his his installation installation installation cheek- cheek- cheek- wonderfulwonderfulwonderful as as theyas they they often often often were. were. were. publicpublicpublic face face face — — —as as as well well well as as as an an an idol idol idol SheSheShe riffled riffled riffled through through through styles styles styles as as di-as di- di-PetPetPet Shop Shop Shop Boys, Boys, Boys, Justice Justice Justice and and and Nas. Nas. Nas. by-jowlby-jowlby-jowl in in the inthe the mansion mansion mansion in in Lower inLower Lower AndAndAnd why why why go go goto to the tothe the trouble trouble trouble of of mov- ofmov- mov- ContinuedContinuedContinued on on onPage Page Page B7 B7 B7 withwithwith a a substantial substantiala substantial gay gay gay following. following. following.verseverseverse as as as funk, funk, funk, electronica, electronica, electronica, rock rock rock Ms.Ms.Ms. Summer Summer Summer won won won Grammy Grammy GrammyMerion,Merion,Merion, Pa., Pa., Pa., that that that he he hebuilt built built for for forthe the the inginging the the the collection collection collection to to a toa more morea more acces- acces- acces- HerHerHer voice, voice, voice, airy airy airy and and and ethereal ethereal ethereal or or orandandand torch torch torch song song song as as asshe she she piled piled piled up up up14 14 14AwardsAwardsAwards for for for dance dance dance music, music, music, R&B, R&B, R&B,purposepurposepurpose and and and opened opened opened in in 1925, in1925, 1925, and and and siblesiblesible location location location when when when the the the galleries galleries galleries brightlybrightlybrightly assertive, assertive, assertive, sailed sailed sailed over over overTopTopTop 10 10 10 singles singles singles in in in the the the United United Unitedrockrockrock and and and gospel. gospel. gospel. Her Her Her recorded recorded recordedhehe hestipulated stipulated stipulated that, that, that, after after after he he hedied, died, died, it it itwerewerewere not not not going going going to to be tobe anybe any any bigger? bigger? bigger? AA RICH RICHA RICH START START STARTFacebookFacebookFacebook sold sold sold 421 421 421 dancedancedance floors floors floors and and and leapt leapt leapt from from from ra- ra- ra-States,States,States, among among among them them them “Love “Love “Love to to tocatalogcatalogcatalog spans spans spans the the the orgasmic orgasmic orgasmicshouldshouldshould remain remain remain exactly exactly exactly as as itas it was. was.it was. AndAndAnd yet yet yet the the the new new new Barnes Barnes Barnes p provesroves provesmillionmillionmillion shares shares shares for for for$38 $38 $38 each, each, each, rais- rais- rais- diosdiosdios from from from the the the mid-’70s mid-’70s mid-’70s well well well into into intoLoveLoveLove You You You Baby,” Baby,” Baby,” “Bad “Bad “Bad Girls,” Girls,” Girls,”moansmoansmoans of of of her her her first first first hit, hit, hit, “Love “Love “Love to to to InIn 2002In 2002 2002 the the the foundation’s foundation’s foundation’s board board board allall allof of us ofus wrong.us wrong. wrong. Against Against Against all all allodds, odds, odds, inginging $16 $16 $16 billion billion billion and and and valuing valuing valuing the the the thethethe ’80s. ’80s. ’80s. “Hot“Hot“Hot Stuff,” Stuff,” Stuff,” “Last “Last “Last Dance” Dance” Dance” and and and ContinuedContinuedContinued on on onPage Page Page A23 A23 A23 —— constrained —constrained constrained by by bylimits limits limits on on onat- at- at- ContinuedContinuedContinued on on onPage Page Page A18 A18 A18 companycompanycompany at at $104 at$104 $104 billion. billion. billion. PAGE PAGE PAGE B1 B1 B1

INTERNATIONALINTERNATIONALINTERNATIONAL A4-14 A4-14 A4-14 BUSINESSBUSINESSBUSINESS DAY DAY DAY B1-9 B1-9 B1-9 SPORTSFRIDAYSPORTSFRIDAYSPORTSFRIDAY B10-16 B10-16 B10-16 AngerAngerAnger Rises Rises Rises After After After Drug Drug Drug Sweep Sweep Sweep SenateSenateSenate Clears Clears Clears Fed Fed Fed Nominees Nominees Nominees AA CoachA Coach Coach of of ofFew Few Few Words Words Words ResidentsResidentsResidents of of the ofthe the isolated isolated isolated Mosquito Mosquito Mosquito TheTheThe Senate Senate Senate voted voted voted to to confirm toconfirm confirm two two two nomi- nomi- nomi- WinWinWin or or lose,or lose, lose, John John John CoastCoastCoast of of Honduras ofHonduras Honduras have have have burned burned burned down down down neesneesnees for for forthe the the Federal Federal Federal Reserve Reserve Reserve Board Board Board of of of TortorellaTortorellaTortorella of of the ofthe the governmentgovernmentgovernment buildings buildings buildings and and and are are are demand- demand- demand- Governors,Governors,Governors, overcoming overcoming overcoming Republican Republican Republican ob- ob- ob- RangersRangersRangers conducts conducts conducts inginging that that that American American American drug drug drug agents agents agents leave leave leave the the the jectionsjectionsjections and and and bringing bringing bringing the the the seven-mem- seven-mem- seven-mem- postgamepostgamepostgame news news news areaareaarea immediately. immediately. immediately. PAGEPAGEPAGE A5 A5 A5 berberber board board board to to full tofull full strength strength strength for for forthe the the first first first conferencesconferencesconferences that that that timetimetime since since since 2006. 2006. 2006. PAGEPAGEPAGE B3 B3 B3 areareare short short short — — one —one one NEWNEWNEW YORK YORK YORK A24-28 A24-28 A24-28 lastedlastedlasted 16 16 seconds 16seconds seconds BriberyBriberyBribery Case Case Case May May May Widen Widen Widen —— antagonistic —antagonistic antagonistic and and and MaryMaryMary Kennedy Kennedy Kennedy Is Is Mourned IsMourned Mourned Wal-MartWal-MartWal-Mart suggested suggested suggested in in a ina regulatory regulatory a regulatory fil- fil- fil- invariablyinvariablyinvariably devoid devoid devoid RobertRobertRobert F. F. Kennedy F.Kennedy Kennedy Jr. Jr. saidJr. said said his his his es- es- es- inginging that that that the the the scope scope scope of of an ofan aninternal internal internal investi- investi- investi- ofof revealing ofrevealing revealing re- re- re- trangedtrangedtranged wife wife wife had had had “a “a lot“a lot lotof of agony” ofagony” agony” in in her inher her gationgationgation into into into bribery bribery bribery accusations accusations accusations had had had wid- wid- wid- sponses.sponses.sponses. PAGEPAGE PAGE B13 B13 B13 life.life.life. She She She had had had been been been suffering suffering suffering from from from alco- alco- alco- enedenedened beyond beyond beyond the the the huge huge huge retailer’s retailer’s retailer’s subsid- subsid- subsid- holismholismholism and and and depression. depression. depression. PAGEPAGEPAGE A25 A25 A25 iaryiaryiary in in Mexico. inMexico. Mexico. PAGEPAGEPAGE B1 B1 B1 WEEKENDWEEKENDWEEKEND C1-32 C1-32 C1-32

AlreadyAlreadyAlready a a Crowd aCrowd Crowd Pleaser Pleaser Pleaser NATIONALNATIONALNATIONAL A16-22 A16-22 A16-22 TheTheThe True True True Stars Stars Stars at at atCannes Cannes Cannes AA month monthA month before before before his his his planned planned planned walk walk walk across across across IfIf the theIf the movies movies movies that that that win win win acclaim acclaim acclaim at at at NiagaraNiagaraNiagara Falls, Falls, Falls, Nik Nik Nik Wallenda, Wallenda, Wallenda, a a descend- descend- a descend- EdwardsEdwardsEdwards Case Case Case in in inJury’s Jury’s Jury’s Hands Hands Hands France’sFrance’sFrance’s Cannes Cannes Cannes Film Film Film Festival Festival Festival have have have lit- lit- lit- antantant of of the ofthe the Flying Flying Flying AA jury juryA jury began began began deliberating deliberating deliberating the the the fate fate fate of of the ofthe the tletle tleimpact impact impact on on theon the the box box box office, office, office, they they they remain remain remain WallendasWallendasWallendas family family family formerformerformer presidential presidential presidential candidate candidate candidate John John John Ed- Ed- Ed- influential,influential,influential, and and and for for forgood good good reason. reason. reason. PAGEPAGE PAGE C1 C1 C1 ofof circus ofcircus circus perform- perform- perform- wards.wards.wards. His His His lawyer lawyer lawyer argued argued argued that that that he he com-he com- com- ers,ers,ers, practices practices practices in in in mittedmittedmitted a a wrong, wrong, a wrong, but but but did did did not not not commit commit commit a a a EDITORIAL,EDITORIAL,EDITORIAL, OP-ED OP-ED OP-ED A30-31 A30-31 A30-31 thethethe town town town twice twice twice a a a crime.crime.crime. PAGEPAGEPAGE A16 A16 A16 day,day,day, across across across the the the DavidDavidDavid Brooks Brooks Brooks PAGEPAGEPAGE A31 A31 A31 streetstreetstreet from from from a a mini- mini- a mini- DetailsDetailsDetails Released Released Released in in inKilling Killing Killing mart,mart,mart, with with with dozens dozens dozens PolicePolicePolice tried tried tried frantically frantically frantically to to save tosave save Trayvon Trayvon Trayvon ofof onlookers ofonlookers onlookers and and and a a a MartinMartinMartin after after after he he washe was was shot shot shot by by bya a neighbor- neighbor- a neighbor- hothothot dog dog dog stand stand stand near- near- near- hoodhoodhood watch watch watch volunteer, volunteer, volunteer, documents documents documents re- re- re- U(D54G1D)y+$!#!\!=!$U(D54G1D)y+$!#!\!=!$U(D54G1D)y+$!#!\!=!$ by.by. by. PAGEPAGEPAGE A24 A24 A24 leasedleasedleased in in the inthe the case case case show. show. show. PAGEPAGEPAGE A16 A16 A16 Nxxx,2012-05-18,A,014,Bs-BW,E1Nxxx,2012-05-18,A,014,Bs-BW,E1Nxxx,2012-05-18,A,014,Bs-BW,E1

A14 A14N A14 N N THE NEW YORKTHE TIMES NEWTHE YORK INTERNATIONAL NEW TIMES YORK INTERNATIONAL TIMESFRIDAY, INTERNATIONAL MAYFRIDAY, 18, 2012 MAYFRIDAY, 18, 2012 MAY 18, 2012 ConcernConcern AboutConcern About Stability About Stability GivesStability Gives Chinese Gives Chinese OfficialsChinese Officials OfficialsLeeway Leeway to Leeway Crush to Crush Dissentto Crush Dissent Dissent

By MICHAEL WINESBy MICHAELBy WINESMICHAELeven reward WINES localeven leaders rewardeven for local do-reward leaders local for leaders do- for do- Neither actionNeither by the localactionNeither au- by theaction local by au- the local au- LINYI, China LINYI, — The China centralLINYI, — TheChinaing so. central — The The reason ing central so. is The thating reason their so. The is thatreason their is that their thorities was thorities legal. “They wasthorities used legal. was “They legal. used “They used government saysgovernment that thegovernment activist says that Communistthe says activist that the Party Communistactivist careersCommunist Party de- careers Party de- careers de- the justificationthe of justification the one-childthe justification of the one-child of the one-child Chen GuangchengChen is Guangcheng a freeChen man, Guangcheng is apend free on man, is meeting a freepend man, a serieson meetingpend of per- on a meetingseries of a per- series of per- policy and policy stability andpolicy mainte- stability and stabilitymainte- mainte- and has promisedand himhas promisedanand investi- has himpromisedformance an investi- him goals an formanceinvesti- — from highgoalsformance eco- — from goals high — eco-from high eco- nance,” said nance,” Pu Zhiqiang, saidnance,” Pu a said Zhiqiang, Pu Zhiqiang, a a gation of the gation harrowing of thegation abuses harrowing of thenomic harrowing abuses growth nomic abuses to low growth levelsnomic to of growth low levels to low of levels of prominent humanprominent rights lawyer.prominenthuman rights human lawyer. rights lawyer. he suffered he at thesuffered handshe at suffered of the public hands at the unrest of hands public — whose of unrestpublic impor- — unrest whose — impor- whose impor- After the detentionAfter the generated detentionAfter the generateddetention generated guards here. Mr.guards Chen’s here.guards desper- Mr. Chen’shere.tance Mr. desper- far Chen’s outweigh tance desper- any far goldoutweightance stars far any outweigh gold stars any gold stars international headlines,international international Mr. headlines, Co- headlines, Mr. Co- Mr. Co- ate escape lastate month escape fromate last escape per- monthawarded last from month per- for fromfollowingawarded per- the forawarded law. following for the following law. the law. hen said, the publichen said, security thehen public min-said, securitythe public min- security min- secution to Americansecution protection tosecution American to American protectionThat system protection givesThat system leadersThat gives an system leaders gives an leaders an ister sent emissariesister sent to ister emissaries Shan- sent emissaries to Shan- to Shan- has embarrassedhas China’sembarrassedhas leaders embarrassed China’sincentive leaders China’s to silence incentiveleaders troublemak- toincentive silence to troublemak- silence troublemak- dong to discussdong the case.to discuss dongLater, theto in discuss case. Later, the case. in Later, in and cast new and shadows cast newand on their shadowscast newers onby shadows theirany means oners their byin orderanyers means to by win any in order means to in win order to win 2006, Mr. Chen2006, was convictedMr. Chen2006, wasand Mr. convictedChen was andconvicted and commitment tocommitment the rule ofcommitment law. to the rulehigh ofto law.the marks rule forofhigh law. maintaining markshigh for pub- marksmaintaining for maintaining pub- pub- imprisoned onimprisoned what expertsimprisoned on saidwhat experts on what said experts said But a visit to thisBut municipalitya visitBut to this a visit municipalitylic to stability, this municipality onelic of stability, the mostlic one stability, im- of the one most of im- the most im- were trumped-upwere charges, trumped-upwere and trumped-up charges, and charges, and in eastern China,in eastern where Mr. China,in eastern Chen where China,portance Mr. whereChen performance Mr.portance Chen metrics. performanceportance It performance metrics. It metrics. It his detention gainedhis detention a legalhis basis.gained detention a legal gained basis. a legal basis. and his familyand most his familyand recently his most familycan recently uncork most gushers recentlycan uncork of moneycan gushers uncork for of gushersmoney forof money for But when he wasBut released when heBut from was when released he was from released from spent 20 monthsspent as 20 prisoners monthsspent 20in as months prisonersadded assecurity inprisonersadded measures in securityadded to keep measures security tomeasures keep to keep prison in Septemberprison in 2010, prison September Mr. in September 2010, Mr. 2010, Mr. their own home,their offers own no home,their hint own offersof home,control no hint offers of of a no high-profilecontrol hint of of control a activist high-profile of a high-profile activist activist Chen again foundChen himself againChen andfound hisagain himself found and himself his and his a change in thea changeway China ina changethe deals way in Chinalike the Mr. way deals Chen. China like deals Mr. Chen.like Mr. Chen. family sealed familyinside theirsealedfamily village inside sealed their inside village their village with its dissidents.with its dissidents.with its dissidents.And it can payAnd off forit can the Andpay local itoff can for pay the offlocal for the local home, this timehome, surrounded this home,time by surrounded thisa time surrounded by a by a Journalists whoJournalistsNxxx,2012-05-18,A,014,Bs-BW,E1 sought onJournalists who Sun- soughtleaders who on Sun-sought who do leaderson the Sun- job who well.leaders do The the who job dowell. the The job well. The Nxxx,2012-05-18,A,014,Bs-BW,E1 cordon of fencescordon and of cordon security fences of and fences security and security day to talk to residentsday to talk a fewdayto residents hun-to talk toman a residents few Mr. hun- Chen a fewman has hun- Mr. blamed Chenman most hasMr. blamedChen has most blamed most equipment andequipment a contingentequipment and aof contingent and a contingent of of dred yards fromdred Dongshigu, yardsdred from theyards Dongshigu, for from his Dongshigu, detentionthe for his andthe detention imprison-for his detentionand imprison- and imprison- guards aroundguards the clock. around guards the around clock. the clock. village in Linyivillage where in Mr. Linyivillage Chen where in Linyiment Mr. where is Chen Li Qun, Mr.ment Chenwho is was Liment Qun, mayor is who Li Qun,was mayor who was mayor For the layersFor of thegovernment layersFor the of government layers of government was held captive,was held were wascaptive, quickly held were captive,of Linyi quickly werefrom 2003of quickly Linyi to 2007. fromof JustLinyi 2003 a fromto 2007. 2003 Just to a2007. Just a overseeing overseeing Dongshigu,overseeing Dongshigu, Mr. Dongshigu, Mr. Mr. A14 N escorted out escorted by thugs outescorted in THE byfour thugsNEW outfew YORK by inyearsA14 fourthugs TIMESbefore few in that, fourINTERNATIONALyears NMr. beforefew Li yearswas that, before Mr.FRIDAY, Li that, was Mr. MAY Li was 18, 2012 THE NEW YORK TIMES INTERNATIONAL FRIDAY, MAY 18, 2012Chen’s destitute,Chen’s remote destitute,Chen’s village, remotedestitute, village, remote village, cars, and latercars, were and accosted latercars, were inand a lateraccostedstudying were in accostedpublic a studying administration in a publicstudying administration at public administration at at detention has detentionbecome a haslucrativedetention become has a lucrativebecome a lucrative burst of arm-wrenchingburst of burst arm-wrenching and of the arm-wrenching University and the of New University and Haventhe University ofand New Haven of New and Haven and industry. Mr. industry. Chen has Mr.industry. claimed Chen Mr. has Chen claimed has claimed name-calling. name-calling.name-calling. an intern to thean New intern Haven toan the internmay- New to Haven the New may- Haven may- ED JONES/AGENCE FRANCE-PRESSEED JONES/AGENCE —ED GETTY JONES/AGENCEFRANCE-PRESSE IMAGES FRANCE-PRESSE —that GETTY his IMAGES captors — GETTYthat IMAGES told his him captorsthat it cost his told captors him it told cost him it cost or, John DeStefanoor, John Jr. DeStefanoor, John DeStefanoJr. Jr. about $9.5 millionabout annually $9.5about million to $9.5 annually million to annually to Concern About StabilityMembers of theMembers same gangGives ofMembers the still same of gang the ConcernChinese same still gang still OfficialsAboutSecurity guards StabilitySecurity barredLeeway guardsSecurity reporters barred guards fromGives reporters toseeing barred Crush Chen reportersfrom Chinese Guangchengseeing from Chen Dissentseeing Guangchengat a Chen Officials Guangcheng hospital at a Beijing on at May hospitala Beijing 4.Leeway on hospital May 4. on May to 4. Crush Dissent keep Mr. Chen’skeep mother Mr. keep Chen’s under Mr. mother Chen’sMr. underLi mother has since underMr. been Li has promoted sinceMr. Li been has sincepromoted been promoted keep him underkeep house him arrest. underkeep himhouse under arrest. house arrest. siege here. Mr.siege Chen’s here. siege nephew Mr. here. Chen’sto Mr. party nephew Chen’s secretary nephewto party of Shandong’s secretaryto party ofsecretary Shandong’s of Shandong’s The target of The that target smotheringThe of that target smothering of that smothering By MICHAEL WINES even reward local leaders for do- By MICHAEL WINES even reward local leaders for do- Neither action by the local au- Neither action by the local au- faces a chargefaces of attempted a chargefaces mur- of a attemptedchargebiggest of attemptedmur- port, Qingdao,biggest mur- port,andbiggest heQingdao, sits port, and Qingdao, he sits and he sits all the other all local the officials otherall the local that other officialsthe localtool that of officials choicethe to thattool deal of withchoicethe tool dis- to of deal choicesecurity with to dis- isdeal now withsecurity in adis- Beijing is securitynow hospi- in a isBeijing now in hospi- a Beijing hospi- ing so. The reason is that their ing so. The reason is that their thorities was legal. “They used thorities was legal. “They used LINYI, China — The central der after he slashedder after a heder knife slashed after at he on a slashed knife theLINYI, atprovince’s a knifeon China the at Communist — province’son The the central province’s CommunistA system Communist gearedA system Ato systemgearedthere’s gearedto a different tothere’s way a differentthere’s of doing a way differentsidents of doing and way troublemakers. ofsidents doing andsidents troublemakers. andtal, troublemakers. preparing tal, to move preparing tal, with preparing to his move with to move his with his Communist Party careers de- Communist Party careers de- the justification of the one-child the justification of the one-child government says that the activist plainclothes officersplainclothes who plainclothesinvaded officers whoParty officers invadedgovernment standing who invadedParty says committee, standing thatParty the itsactivist committee,standing committee, its its things now. Andthings that now. wouldthings And be thatnow.a would AndA self-taughtthat be awould A lawyerbe self-taught a whoA self-taught islawyerwife who and lawyer daughteris wife who and to is the daughterwife United and to daughter the United to the United pend on meeting a series of per- allowingpend on localmeetingallowing leaders a allowingseries local of per- leaders local leaders policy and stability mainte- policy and stability mainte- Chen Guangcheng is a free man, his home and hisbeat home him. andLawyershis homebeat him. andhighest LawyersbeatChen rulinghim. Guangcheng Lawyers highestbody. ruling ishighest a body.free ruling man, body. very fundamentalvery change.” fundamentalvery fundamental change.”blind, Mr.change.” Chenblind, crusaded Mr. blind, Chen for so- crusaded Mr. ChenStates for crusaded to so-studyStates law. for so-But to studytheStates costly law. to Butstudy the law. costly But the costly formance goals — from high eco- formance goals — from high eco- nance,” said Pu Zhiqiang, a nance,” said Pu Zhiqiang, a and has promised him an investi- seeking to defendseeking the to seeking nephew defend to the defend Only nephewand whenhas the promised nephew Only local whenmeasureshimOnly an localinvesti- when measures local measures A serious inquiryA serious also A would inquiry serious cial also inquiry justice would also incial hiswould justice nativecial in Shan- justice his nativecrackdown in his Shan- native continuescrackdown Shan- unabated.crackdown continues unabated.continues unabated. nomic growth to low levels of to ignorenomic growth theto ignore law. to lowto theignore levels law. of the law. prominent human rights lawyer. prominent human rights lawyer. gation of the harrowing abuses have been orderedhave been to drophave ordered the been to blow ordered drop gation up the intoto of drop blow national the the harrowingup intoorblow global national up abuses into or national global or global send a signal send that when a signalsend enough that a signal whendong that enough Province, when dong enough and Province, in dong the pro- Province,and in Outside the and pro- in Dongshigu, theOutside pro- Outside Dongshigu,police Dongshigu, police police public unrest — whose impor- public unrest — whose impor- After the detention generated After the detention generated he suffered at the hands of case or face retribution.case or facecase retribution. or faceembarrassments, retribution.he sufferedembarrassments, as at they theembarrassments, have hands in as they of have as inthey have in publicity and pressurepublicity isand publicitybrought pressure andcess is pressure brought imperiled is broughtcess party imperiled cess officials’ imperiled partyvans officials’ dot party the hig officials’vanshway, dot their thevans higlights dothway, the their highway, lights their lights tance far outweigh any gold stars tance far outweigh any gold stars international headlines, Mr. Co- international headlines, Mr. Co- guards here. Mr. Chen’s desper- There is no evidenceThere is that noThere evidence the is Mr. no that evidence Chen’sguards the case, here. thatMr. theisChen’sMr. the Chen’sMr. central case, Chen’s desper- is the case, central is the central to bear, the Communistto bear, the Partyto Communist bear, can the recordCommunist Party not can only Partyrecord on cankeeping not recordonly order, on not keeping onlyflashing, on order, keeping and flashing, carloads order, and offlashing, plain- carloads and of carloads plain- of plain- awarded for following the law. hen said.awarded “I can henfor tell following said. you that“Ihen can the there said. tell law. you“I can that tell there you that there hen said, the public security min- hen said, the public security min- ate escape last month from per- government ingovernment Beijing government ordered in Beijinggovernment in ordered ate Beijing escape obliged orderedgovernment last month to government step obliged from in per- to obliged step in to step in be forced to change.be forced tobe change. forced tobut change. also on anotherbut also important onbut another also onclothes important another guards importantclothes roam sideguardsclothes roads, roam guards side roam roads, side roads, That system gives leaders an are thousandsThat system areof cases thousands gives likeare this.” leaders thousandsof cases an like of this.” cases like this.” ister sent emissaries to Shan- ister sent emissaries to Shan- secution to American protection this harassment,this all harassment, of whichthis harassment,is il-all ofand which ordersecution all is of il- face-savingwhich and to Americanis order il- measures and face-saving protection order face-saving measures measures “The main problem“The main with“The problem Bei- mainmeasure: with problem Bei- enforcing withmeasure: Bei- the one-childenforcingmeasure: theenforcingtheir one-child license the one-child their plates license sometimestheir plates license sometimes plates sometimes incentive to silence troublemak- To thoseincentive who tostudyTo silence those the whosystem, troublemak-To thosestudy whothe system, study the system, dong to discuss the case. Later, in dong to discuss the case. Later, in has embarrassed China’s leaders legal under legal Chinese under law.legal Chinese But underlike law. Chinese investigations.has But embarrassed law.like But investigations. In China’s countlesslike investigations. leaders In countless In countless jing is that veryjing often, is that theyjing very con- is often, that population-control very they often, con- theypopulation-control con- policy.population-control policy.covered policy. in camouflagecovered incloth. coveredcamouflage in camouflage cloth. cloth. ers by any means in order to win its successers by makes anyits means success it unlikely inits makesorder success that toit winunlikely makes itthat unlikely that 2006, Mr. Chen was convicted and 2006, Mr. Chen was convicted and and cast new shadows on their there is also there no any is indication alsothere no is any alsoother indication noand instances, any cast indication other new the shadows instances, expertsother say, on instances, the their experts the say, experts say, done injusticesdone even injustices thoughdone they eveninjustices thoughIn evenAugust they though 2005,In they after August he Inbegan2005, August after 2005,Onhe began Sunday,after he whenbeganOn Sunday, journalistsOn when Sunday, journalists when journalists high marks for maintaining pub- high marks for maintaining pub- imprisoned on what experts said imprisoned on what experts said commitment to the rule of law. that Beijing wantsthat itBeijing to stop.that wants Beijing it toBeijing wantsstop.commitment itquietly to stop.Beijing tolerates to the quietly localruleBeijing oftoleratesoffi- law. quietlyparty local tolerates leaders offi- local willparty offi-use leaders theparty embar- will leaders use knowthe will embar- thatuse the the knowembar- local that authoritiesknow the local that a authoritiesthe deftly local publicized authoritiesa deftly campaign publicizeda deftly to publicized campaignsought to campaign to visitsought Mr. toChen’s to sought visit home Mr. to Chen’s visit Mr. home Chen’s home lic stability, one of the most im- lic stability, one of the most im- were trumped-up charges, and were trumped-up charges, and But a visit to this municipality In fact, both In rights fact, activists bothIn fact, rights cials’ both activists lawlessness, rightsBut a activistsvisitcials’ andto lawlessness, this theycials’ municipality do lawlessness,so andrassment they do and so of they therassment do Chen so episode ofrassment the Chen to ofare episode the in Chen the to wrong,” episodeare in said to the Nicholasare wrong,” in the said wrong,”help Nicholas citizens said sue Nicholashelp the citizens localhelp govern- sue citizens the localin sue Dongshigu,govern- the local ingovern- about Dongshigu, 33in miles Dongshigu, about 33 about miles 33 miles portance performance metrics. It portance performance metrics. It his detention gained a legal basis. his detention gained a legal basis. in eastern China, where Mr. Chen and legal expertsand say, legal the expertsand system legal say, experts forthe a system simplein say, eastern the reason: forsystem China, a simple with wherefor rare reason: a Mr. simpleex- Chen withpush reason: rare for ex- with changes rarepush ex- for that push changes could for Bequelin that changes could of that HumanBequelin could Rights ofBequelin Human Watch Rights ofment Human Watch over Rights forcedment Watch late-term over mentforced abor- over late-term forcedfrom abor- Linyi,late-term theyfrom abor- were Linyi, from quickly they Linyi, were they quickly were quickly can uncork gushers of money for can uncork gushers of money for But when he was released from But when he was released from and his family most recently for dealing withfor dissidentsdealingfor with dealing and dissidentsceptions, withand dissidents and the his ceptions, system family and is most theceptions, exceed- system recently the themselves is system exceed- isprove themselves exceed- destabilizing.themselves prove destabilizing.in prove Hong destabilizing. Kong.in “But Hong many Kong.in ofHong “Butthe Kong. manytions “But of and the many sterilizations,tions of the and tions sterilizations, the re- and sterilizations,and theroughly re- escorted and the roughly re- awayand escorted by roughly se- away escorted by se- away by se- added security measures to keep added security measures to keep prison in September 2010, Mr. prison in September 2010, Mr. spent 20 months as prisoners in other troublemakersother troublemakers is gearedother troublemakersto- isingly geared spentefficient to- is 20geared atingly months stifling to-efficient as unrest.ingly prisoners at efficient stifling in unrest.“It at stiflingwould have unrest.“It implications would have“It notwould implicationsproblems have implications not thatproblems come not up thatproblems in these come that upaction in come these was up swift: inaction these a was mobaction swift: sur- was a curity mob swift: guardssur- a mobcurity in sur- plain guards curity clothes. in guards plain clothes. in plain clothes. control of a high-profile activist control of a high-profile activist Chen again found himself and his Chen again found himself and his their own home, offers no hint of ward allowing wardlocal allowingleadersward to local allowingig- leadersJerome localtheir to leadersig- Cohen,own home, Jerometo a ig-law offers professor Cohen,Jerome no hinta law Cohen, justof professor in aone law city professorjust or onein one county, justcity in orbut one one city casescounty, or areone but notcounty, cases isolated but are — notcases they’re isolated are notrounded — isolated they’re Mr. — Chen’s rounded they’re village Mr.rounded Chen’shome, Mr. villageLater, Chen’s home, in village Yinan,Later, home, the countyin Yinan,Later, seat, the in Yinan, county the seat, county seat, like Mr. Chen. like Mr. Chen. family sealed inside their village family sealed inside their village a change in the way China deals nore the law, withnore Beijing’s the law,nore some-with the Beijing’s law,at with New asome- Beijing’schange York at Universityin some- Newthe way Yorkat andChina New University an deals Yorkfor University the and entire an for country,” and the an entire Fufor Hual- the country,” entireendemic. Fu country,” Hual- And Fu endemic. Beijing Hual- fears Andendemic. thatBeijing Andtrapping fears Beijing that the fears trapping family that inside thetrapping family for the one inside family man for attacked insideone forman a photogra-one attacked man a attacked photogra- a photogra- And it can pay off for the local And it can pay off for the local home, this time surrounded by a home, this time surrounded by a with its dissidents. times silent assent.times silenttimes assent. silent adviser assent.with to its Mr. dissidents.adviser Chen, said to adviserMr. he Chen,was to Mr.saiding, Chen,he a was law said professor ing,he was a law ating, professor Hong a lawbacking professor at Hong down at backingon Hong one case downbacking would on one down weeks.case on would one Foreshadowingcaseweeks. would weeks. Foreshadowing the Foreshadowingpher who the was pherrecording thewho wasapher report- recording who was arecording report- a report- leaders who do the job well. The leaders who do the job well. The cordon of fences and security cordon of fences and security Journalists who sought on Sun- The central governmentThe centralThe may government centraltold government by mayJournalists a prominenttold may who by sought atold Chinese prominent byon Sun- a Kong prominent Chinese University, ChineseKong said University, inKong an in- University, saidopen in anthe said in-floodgates.” inopen an in-the floodgates.”open the floodgates.”events of thisevents spring, of Mr. events this Chen spring, of thiser’s Mr. attempt spring, Chen Mr.toer’s question Chen attempt him.er’s to attemptquestion to him. question him. man Mr. Chen has blamed most man Mr. Chen has blamed most equipment and a contingent of equipment and a contingent of day to talk to residents a few hun- criminalday to lawyer talkcriminal to that residents cases lawyercriminal a likefew that hun- lawyer terview. cases that like“This cases terview.is how like they “Thisterview. govern is how “This theyMr. is govern how Chen’s they case, governMr. one Chen’s of theMr. case, few Chen’s oneand of case, thea nephew fewone of eventuallyandthe fewa nephew andescaped eventually a nephew“Get eventuallyescaped out of escaped China,”“Get out the of“Get man China,” out of the China,” man the man for his detention and imprison- for his detention and imprison- guards around the clock. guards around the clock. dred yards from Dongshigu, the Shi Da contributedShi Da research contributedShi fromDa contributed researchMr. Chen’sdred from research yards wereMr. from Chen’s not Dongshigu,Mr. unusual. were Chen’s not thethe wereunusual. population. not unusual.the If youpopulation. punishthe population. Ifthe youto punish get If prolongedyou the punishto get public the prolonged scrutiny,to get prolonged publicto Beijing, scrutiny, public only scrutiny,to to Beijing, be seized toonly Beijing, there to be seizedonlyyelled to there be at aseized Chineseyelled there news at ayelled Chinese assist- at a news Chinese assist- news assist- ment is Li Qun, who was mayor ment is Li Qun, who was mayor For the layers of government For the layers of government village in Linyi where Mr. Chen Dongshigu, China,Dongshigu, and Dongshigu, Edy China, Yin and “They’re China, Edyvillage Yin and only in Edy“They’re Linyi unusual Yin where only“They’re because Mr. unusual Chen onlylocal because unusual government, becauselocal if government, youlocal dismiss government, if youoffers dismiss some if you insights offers dismiss some intooffers the insights in- some intoand insights returned the in- into homeand the returned in-by policeand home returnedoffi- byant. police home “You’re offi- by police notant. Chinese. offi- “You’reant. You’re not “You’re Chinese. not You’re Chinese. You’re of Linyi from 2003 to 2007. Just a of Linyi from 2003 to 2007. Just a overseeing Dongshigu, Mr. overseeing Dongshigu, Mr. was held captive, were quickly from Beijing. from Beijing.from Beijing.you knowwas held aboutyou captive, them,” know you were aboutMr. know Co- quickly them,” aboutthe Mr.officials, them,” Co- then Mr.the youofficials, Co- havethe thento officials, tell you centiveshave then to you tell that have centives maketo tell repression thatcentives make that cers repression makesent from repression cersShandong. sent fromcers Shandong. sent froma traitor.” Shandong. a traitor.” a traitor.” escorted out by thugs in four few years before that, Mr. Li was escorted out by thugs in four few years before that, Mr. Li was Chen’s destitute, remote village, Chen’s destitute, remote village, cars, and later were accosted in a studying public administration at cars, and later were accosted in a studying public administration at detention has become a lucrative detention has become a lucrative burst of arm-wrenching and the University of New Haven and burst of arm-wrenching and the University of New Haven and industry. Mr. Chen has claimed industry. Mr. Chen has claimed that his captors told him it cost name-calling. an intern to the New Haven may- name-calling. an intern to the New HavenED JONES/AGENCE may- FRANCE-PRESSE — GETTY IMAGES ED JONES/AGENCE FRANCE-PRESSE — GETTY IMAGES that his captors told him it cost or, John DeStefano Jr. or, John DeStefano Jr. about $9.5 million annually to about $9.5 million annually to Members of the same gang still In EconomicIn EconomicInSecurity Economic Rise, guardsMembers barredChina’sRise, of reporters the Rise, same China’s gangfrom ‘Princelings’ still seeingChina’s Chen ‘Princelings’ Guangcheng ‘Princelings’ atLearn a Beijing hospitalSecurity Learn to on guards CashMayLearn 4.barred to reportersCashIn to on fromCash InTheir seeing on ChenIn Their GuangchengFamily on Their Familyat a BeijingTies Family hospital Ties on May Ties 4. keep Mr. Chen’s mother under Mr. Li has since been promoted keep Mr. Chen’s mother under Mr. Li has since been promoted keep him under house arrest. keep him under house arrest. siege here. Mr. Chen’s nephew to party secretary of Shandong’s siege here. Mr. Chen’s nephew to party secretary of Shandong’s The target of that smothering The target of that smothering faces a charge of attempted mur- biggest port, Qingdao,From Page and he A1 sitsFrom APage systemFrom A1 Pagefaces geared A1 a charge to of attemptedall themur- otherbiggest local port, officials Qingdao, that andthe he tool sits ofPower choiceA system to anddealPower with geared Profit dis-Power and securityto Profit andis nowall theinProfit a otherBeijing local hospi- officials that the tool of choice to deal with dis- security is now in a Beijing hospi- der after he slashed a knife at on theofficial, province’s helped official, Merrill Communist helped Lynchofficial, Merrillwin helped Lynch Merrillder win after Lynch he win slashed a there’s knife at a Family differenton members the way province’sFamily ofof doingmany members Communisthigh-rankingFamilysidents of members many and officials troublemakers.high-ranking of many have high-ranking profited officials enormously have officialstal, profited preparing havefrom enormously there’sChina'sprofited to move aeconomicenormously from different with China's boom, his wayfrom economic ofChina's doing boom,economicsidents boom, and troublemakers. tal, preparing to move with his plainclothes officers who invaded Party a standing deal to arrange committee,a deal the to $22 arrangeitsa dealbillionallowing to the arrange $22 plainclothes billion local the $22 leaders billion officers whothings invaded now.oftenParty And through that standing would businessesoften be committee, through a tiedoftenA businesses to self-taughtthrough itsthe state.allowing businessestied Below, lawyerto the some state.tiedlocal who totop Below, the is Partyleaders state.wife some leaders, andBelow, top daughter andParty thingssome important leaders, topnow. to Party the And relatives.and Unitedleaders, thatimportant would and relatives. importantbe a relatives.A self-taught lawyer who is wife and daughter to the United his home and beat him. Lawyers highestpublic ruling listing body. public of the listinggiantpublic state- of the listing giant of his state-the home giant and state- beat him. veryLawyers fundamentalhighest change.” ruling body. blind, Mr. Chen crusaded for so- States to studyvery law. fundamental But the costly change.” blind, Mr. Chen crusaded for so- States to study law. But the costly seeking to defend the nephew Onlyrun when bank local I.C.B.C.,run measures bank in what run I.C.B.C., bankto be- ignore in I.C.B.C., whatseeking the be- in whatlaw. to defend be- the nephewA serious inquiryOnly when also would local measurescial justice to in ignore his native the Shan- law.crackdown continuesA serious unabated. inquiry also would cial justice in his native Shan- crackdown continues unabated. have been ordered to drop the blow upcame into the national world’scame or largest theglobal came world’s initial the largest world’s have initial largest been initial ordered to dropsend thea signalblow that up when into enoughnational ordong global Province, and in the pro- Outside send Dongshigu, a signal that police when enough dong Province, and in the pro- Outside Dongshigu, police case or face retribution. embarrassments,public stock as offering. publicthey have stock publicin offering. stock offering.case or face retribution. publicity andembarrassments, pressure is brought as theycess have imperiledin party officials’ vans dot thepublicity highway, and their pressure lights is brought cess imperiled party officials’ vans dot the highway, their lights There is no evidence that the Mr. Chen’sMuch case, of the is income theMuch central ofearned theMuch incomehen by ofsaid. the earned “I income canThere bytell earned you is nothat by evidence there to that bear, the the Mr.Communist Chen’s Party case, can is therecord central not onlyhen said.on keeping “I can tellorder, you thatflashing, there andto bear, carloads the Communist of plain- Party can record not only on keeping order, flashing, and carloads of plain- be forced to change. but also on another important clothes guardsbe forced roam to side change. roads, but also on another important clothes guards roam side roads, government in Beijing ordered governmentfamilies obliged of seniorfamilies to leaders step of familiesin seniormayare be leaders ofthousands senior maygovernment leaders of be cases may like in be this.” Beijing ordered government obliged to step in are thousands of cases like this.” this harassment, all of which is il- and order face-saving measures this harassment, all of which“The is il- mainand problem order face-saving with Bei- measuresmeasure: enforcing the one-child their license “The plates main sometimes problem with Bei- measure: enforcing the one-child their license plates sometimes entirely legal. entirelyBut it is legal.allentirely but But im-To itlegal. thoseis all But butwho it im- studyis all but the im-system, To those who study the system, legal under Chinese law. But like investigations. In countless legal under Chinese law.jing is But that like very investigations. often, they con- In countlesspopulation-control policy. covered in camouflagejing is that cloth. very often, they con- population-control policy. covered in camouflage cloth. possible to distinguishpossible topossible between distinguishits success to distinguish between makes it betweenunlikely that its success makes it unlikely that there is also no any indication other instances, the experts say, there is also no any indicationdone injusticesother even instances, though thethey expertsIn say,August 2005, after he began On Sunday,done when injustices journalists even though they In August 2005, after he began On Sunday, when journalists legitimate andlegitimate ill-gotten gains legitimateand ill-gotten partybe- andleaders gains ill-gotten will be- use gains the be- embar- that Beijing wants it to stop. Beijing quietly tolerates local offi- that Beijing wants it to stop.know that Beijing the local quietly authorities tolerates locala deftly offi- publicizedparty leaders campaign will use to thesought embar- to visitknow Mr. that Chen’s the home local authorities a deftly publicized campaign to sought to visit Mr. Chen’s home cause there iscause no public therecause disclo- is rassment no there public is of no disclo-HU the publicJINTAO Chen disclo- episodeHU JINTAO to WEN JIABAO WEN JIABAOWEN JIABAOrassmentJIANG ofZEMIN the ChenJIANG episode ZEMINJIANG to ZEMIN LI PENG LI PENG WU BANGGUOWU BANGGUO In fact, both rights activists cials’ lawlessness,sure of the wealth andsure they of of officials dothe sosure wealth andof theof officials wealth ofInand officials fact, both and rights are activists in the wrong,”cials’ lawlessness, said Nicholas and theyhelp do citizens so sue the local govern- in Dongshigu,are in about the wrong,” 33 miles said Nicholas help citizens sue the local govern- in Dongshigu, about 33 miles and legal experts say, the system for a simple reason: with rare ex- push forChina's and changes presidentlegal experts thatChina's could say,presidentChina's theBequelin system president ofPrime forHuman a simpleminister Rights reason:Prime Watch minister withPrimement rare ministerex-over forcedpushFormer late-term for president changes abor-Former that presidentfrom Former could Linyi, presidentBequelin theyFormer were of Human prime quickly minister RightsFormer WatchprimeFormer ministerment prime over China'sminister forced top late-term legislatorChina's abor- topChina's legislatorfrom top Linyi, legislator they were quickly their relatives.their Conflict-of-inter- relatives.their themselves relatives.Conflict-of-inter- p Conflict-of-inter-rove destabilizing. themselves prove destabilizing. for dealing with dissidents and ceptions,est laws the systemare weakest is laws or exceed- nonexistent. areest weak laws or are nonexistent. weakfor or dealingnonexistent. with dissidentsin Hong and Kong.ceptions, “But many the system of the is tions exceed- and sterilizations, the re- and roughlyin escorted Hong Kong. away “Butby se- many of the tions and sterilizations, the re- and roughly escorted away by se- “It would have implications not “It would have implications not other troublemakers is geared to- ingly efficientAnd the at business stiflingAnd unrest.dealings the businessAnd of thethe dealings business otherof dealings the troublemakers of the is gearedproblems to- thatingly come efficient up inat thesestifling unrest.action was swift: a mob sur- curity guardsproblems in plain that clothes. come up in these action was swift: a mob sur- curity guards in plain clothes. just in one city or one county, but just in one city or one county, but ward allowing local leaders to ig- Jeromepolitical Cohen, elite a law political are professor heavily elitepolitical cen- are eliteheavily areward cen- heavily allowing cen- local leaderscases to ig- are not Jerome isolated Cohen, — they’re a law professorrounded Mr. Chen’s village home, Later, in Yinan,cases the are county not isolated seat, — they’re rounded Mr. Chen’s village home, Later, in Yinan, the county seat, nore the law, with Beijing’s some- for the entirenore country,” the law, Fuwith Hual- Beijing’sendemic. some- And Beijing fears that trapping thefor family the entire inside country,” for Fuone Hual- man attackedendemic. a And photogra- Beijing fears that one man attacked a photogra- at Newsored York inUniversity thesored state-controlled and in ansored the state-controlled in theHu Haifeng state-controlledHu HaifengHuWen Haifeng YunsongatWen New Yunsong Zhang YorkWen University Beili YunsongZhang andJiang Beili anZhang Mianheng BeiliJiang MianhengAlvinJiang Jiang MianhengAlvin JiangLi AlvinXiaolin Jiang Li XiaolinLi XiaopengLi Xiaolin trappingLi Xiaopeng Feng theLi Xiaopeng familyShaodong insideFeng Shaodong for Feng Shaodong times silent assent. adviser to Mr. Chen, said he was ing, a lawtimes professor silent assent. at Hong backing downadviser on one to caseMr. Chen, would saidweeks. he was Foreshadowinging, a law professor the atpher Hong who wasbacking recording down a onreport- one case would weeks. Foreshadowing the pher who was recording a report- news media. news media.news media.Son Son SonSon Son WifeSon Wife Son Wife Son GrandsonSon GrandsonDaughterGrandson DaughterSon Daughter Son Son-in-lawSon Son-in-law Son-in-law The central government may told by The a prominent spoils system,The Chinese spoils for allThe system, Kong the spoils University, for system, all The the for saidcentral all in the governmentan in- open may the floodgates.”told by a prominent events Chinese of thisKong spring, University, Mr. Chen said iner’s an attempt in- open to question the floodgates.” him. events of this spring, Mr. Chen er’s attempt to question him. criminalefforts lawyer to keep thatefforts a caseslid on to it, likekeepefforts poses aterview. lid toa onkeep Servedit, “This aposes lid asis on ahow party it, posestheyServed govern a as partyServedMr. Wen’sMr. as partyChen’s son, criminal Mr.also case, Wen’s one According lawyer son, Mr.of the Wen’salso that fewto ason, According casesand also Partlya like nephew toAccording controls aterview. eventually Partlyto “This a controls escaped Announcedis howPartly they controls plans govern“GetAnnounced out Chairwoman ofMr.Announced plans China,” Chen’s theand case,plansChairwoman man one Former of Chairwomanthe and chairmanfew andFormer and a nephew chairmanAlsoFormer eventuallyknown chairman as Also escaped knownAlso as “Get known out as of China,” the man Shi Da contributed research from Mr. Chen’sfundamental were challengenotfundamental unusual. tofundamental the challengethe le- population.secretary tochallenge theShi Da le-If to you contributed to secretary thepunish le- the researchtosecretary knownto get from asto prolonged WinstonMr.known Chen’s public asU.S. Winstonknown scrutiny,Statewere as not WinstonU.S. to unusual. Beijing,StateShanghai U.S. onlythe StateAlliance population.to beShanghai seizedto If Alliancethereraise Shanghaiyou $1punish yelledbillion Allianceto the raise at a to$1 Chinesechief gettobillion raiseexecutive prolonged news $1 billion chief assist-of public executiveof a scrutiny,chief state- of executive toof Beijing,a ofstate- Wilson ofonly a state- to Feng, be seized heWilson is there Feng,Wilson yelledhe is Feng, at a he Chinese is news assist- Dongshigu, China, and Edy Yin “They’regitimacy only of unusual thegitimacy Communist because ofgitimacy the Party. Communistlocal of government, theTsinghua Communist Dongshigu,Party. Holdings, if youTsinghua Party. China, dismiss Holdings, andTsinghuaWen, offers Edy is Holdings, Yin the some “They’re Wen, insights is Departmentthe intoonlyWen, the unusual is in-the Department and because Investments,returnedDepartment local home government,a Investments, by policefor hisInvestments,offi- if a investment youant. dismiss for “You’re a his investmentoffersChina notfor Chinese.hisPower some investment insights China You’re Power intocontrolledChina the in-Power powerandcontrolled returned thepowercontrolled generalhome by power policethe general offi- the ant. general “You’re not Chinese. You’re from Beijing. you knowAs the about state’s them,”As business the Mr. state’s Co- As has the the businessbe- state’sofficials,an hasumbrella businessfrom then be- Beijing. you hasan have umbrella be- to tellan chairmanumbrellacentives of thattheyouchairman make knowcable, of repressionaboutchairman the she them,” ofcable, the cers Mr. state-backed sentshe Co- cable, fromthe Shandong. sheofficials, state-backed then fund, state-backedyou Boyu have a traitor.” tofund, tell BoyucentivesInternational, fund, Boyu that the International, make company repressionInternational, the until cerscompany the sent fromuntilmanagercompany Shandong. of until a manager ofmanager aa traitor.” of a come increasinglycome increasinglyintertwinedcome increasingly intertwinedcompany, intertwinedfrom company,late fromcompany,state-owned late from lateChinastate-owned controlsstate-owned China part ofcontrols Chinacompany partcontrols of that part company of Capital, thatcompany which that wasCapital, whichflagshipCapital, was of whichone flagshipof was 2008; of oneflagship now of viceof one2008; of nownuclear 2008;vice nowpower vice nuclear powernuclear power with a class with of families a classwith some- of a families class2008 of some- to families 2009. 2008 some- to 2009.2008Satellite to 2009. Satellitethe Satellite precious the preciousinvestedthe preciousin a invested formed in investeda with ina formeda withChina’sformed a big with five China’sa governorbig China’sfive of big Shanxi governorfive ofinvestmentgovernor Shanxi of fund Shanxiinvestment investmentfund fund times called thetimes Red called Nobility,times the an- Redcalled Nobility,Before the Red that,an- Nobility, heBefore was an- that,Before heCommunications was that, he wasCommunications gemsCommunications market. gems market.Microsoftgems joint market. Microsoftformer jointMicrosoft executive jointformer executivepowerformer generating executivepower generatingProvince.power generatingProvince. establishedProvince. by establishedthe established by the by the In Economic Rise,alysts China’s say the alystspotential say exists alyststhe‘Princelings’ potential for say thepresident exists potentialIn for of Economicexistsa president for Learn ofpresident aCorporation of a Rise, toandCorporation Cash CorporationChina’s and In and on venture ‘Princelings’ Their and in venture Familyfrom andventure inTPG, the and from Learnin Ties TPG,companies. thefrom TPG, to thecompanies. Cashcompanies. In on Theirstate-owned state-ownedFamilystate-owned Ties a backlash againsta backlash an a increas- against backlash an state-controlled against increas- an increas-state-controlled firm state-controlledthe firm co-founder firm theof co-founderthe co-founderof of ,China as Netcom,AmericanChina as Netcom,private American as privateAmerican private Guangdong GuangdongGuangdong ingly entrenchedingly elite. entrenched Theyingly also entrenched elite. thatThey made elite. also scanners Theythat also made scannersthatNew made Horizon, scanners aNew big Horizon,New a bigHorizon, a bigwell as a recentwell as aequity recentwell giant. as a recentequity giant.equity giant. Nuclear Power Nuclear PowerNuclear Power From Page A1 point to the riskpoint that to national thepoint risk pol- tothat the national riskto detect that pol- nationalcontrabandFromto detect pol- Page contrabandto A1 privatedetectPower contraband equity firm. privateand equityProfitprivate firm. equity firm.DreamWorks deal.DreamWorksDreamWorks deal. deal. Power and Profit Holding Holding Holding icies may be subvertedicies may icies beby subverted lead- may beor subverted bydangerous lead- byor lead-dangerousor dangerous Corporation. Corporation.Corporation. official, helped Merrill Lynch win Family members of many high-ranking officials have profited enormously from China's economicFamily members boom, of many high-ranking officials have profited enormously from China's economic boom, ers and formerers leaders, and former ers many and leaders, of formermaterials. many leaders,official, of helped manymaterials. ofMerrillmaterials. Lynch win a deal to arrange the $22 billion whom exert influencewhom exert longwhom influence after exertoften long influence througha after deal longbusinesses to arrange after tied the to $22 the billion state. Below, some top Party leaders, and importantoften relatives. through businesses tied to the state. Below, some top Party leaders, and importantTHE NEW relatives. YORK TIMES THE NEW YORK TIMESTHE NEW YORK TIMES public listing of the giant state- their retirement,their acting retirement, totheir protect retirement, acting to protectpublic acting listingto protect of the giant state- run bank I.C.B.C., in what be- their own interests.their own interests.their own interests.closurerun reports bankclosure I.C.B.C., remain reports closure in secret; what remain reports be-want secret; to remain implement want secret; toreform, implementwant their to implement reform,that Zeng their reform, Wei,that the their Zengson of Wei,that China’s Zengthe son Wei,selves. of China’sthe “Theson of partyselves.China’s has “The selves. said party an- “The hasmunist party said Party an- has saidmunist promising an- Party munist to over- promising Party promising to over- to over- came the world’s largest initial Chinese officialsChinese and their officialsChinese rela- and officialsproposals theircame rela- and to thetheir makeproposals world’s rela- them largestproposals to public make initial them tochildren make public mightthemchildren public say, ‘Dad, mightchildren what say, might ‘Dad,former say, what vice ‘Dad, presidentformer what vice Zengformer president Qing- viceticorruption Zeng president Qing- Zeng effortsticorruption Qing- are a ticorruptionlife-and- efforts arehaul effortsa life-and- the are nation’s a life-and-haul media the nation’s haul and cul- the media nation’s and media cul- and cul- public stock offering. tives rarely discusstives rarely suchtives adiscuss del- rarely suchhave discuss public abeen del- suchshelved stockhave a offering. del- repeatedlybeen haveshelved beenby repeatedly shelvedabout my repeatedly by business?’”about by my business?’”about my business?’”hong, bought ahong, $32 millionboughthong, man- a $32 bought milliondeath a $32 man-issue,” million Mr.death man- Li issue,”said.death “But Mr. issue,” if Li said.tural Mr. “But industries, Li said. if tural “But the industries, if relativestural industries, of the relatives the of relatives of Much of the income earned by icate issue publicly.icate issue Theicate publicly. New issue the The publicly. party-controlled NewMuch The ofthe the Newparty-controlled legislature.incomethe earnedparty-controlled legislature. byThere legislature. are alsoThere growing areThere also con- growing aresion also in con- Sydney,growingsion con- in Sydney,sion — inare Australia Sydney,they —want Australia are to cleanthey — are wanthouse, theyto it clean may want house, toChina’s clean it may house, politicalChina’s it elitemay politicalareChina’s at the elite political are at elite the are at the families of senior leaders may be York Times madeYork TimesrepeatedYork made at-Times repeatedThe madefamilies party at- repeated isof unlikelyseniorThe at- party leaders to The ismove unlikely may party cernsbe is to unlikely move that a culture tocerns move that of nepotism cerns a culture that ofignored a culturenepotism by of the nepotismignored Chinese-language byignored the Chinese-language by bethe fatal.” Chinese-languagebe fatal.” be fatal.” head of the crowdhead scrambling of thehead crowd offor thescrambling crowd scrambling for for entirely legal. But it is all but im- tempts to reachtempts public to tempts officialsreach public to more reach officialsentirely aggressively public legal. officialsmore But because aggressively itmore is all fam- aggressivelybut because im-and privilege fam- because nurturedand fam- privilege atand the nurtured privilege top news at nurtured the media top at andnews the blockedtop medianews by and In- media blocked andChinese by blocked In- tycoons byChinese In- have tycoonsChinese also footholds have tycoons also in have a newfootholds alsofrontier. infootholds a new frontier. in a new frontier. possible to distinguish between possible to distinguish between and their relativesand theirfor this relativesand article, their for relatives iliesthis ofarticle, high-ranking for thisilies article, of past high-ranking iliesand cur-of high-ranking pastof theand systemcur- past and of has the cur- flowed systemof down- the has system flowedternet has down- censors. flowedternet down- censors.ternet censors.been quietly welcomedbeen quietly been into welcomed the quietly The welcomed into February the intoThe announcement the FebruaryThe February announcement announcement legitimate and ill-gotten gains be- legitimate and ill-gotten gains be- often throughoften their through companies.often their through rent companies. theirofficials companies. arerent now officials deeplyrent are em-officials now ward,deeply are now permeating em- deeplyward, em- bureaucracies permeatingward, permeating bureaucraciesAllegations bureaucracies of Allegationsbribery andAllegations of cor- briberyfamilies ofand bribery cor- of senior andfamilies cor- leaders, offamilies senior often leaders, of of senior the deal often leaders, betweenof the often DreamWorksdeal ofbetween the deal DreamWorks between DreamWorks cause there is no public disclo- cause there is no public disclo- HUNone JINTAO of those Nonereached of thoseagreedNone reached ofto thoseWENbedded agreed reachedJIABAO in to the agreed beddedeconomic to in beddedfabricthe economic of in theat everyfabriceconomicJIANG ofZEMIN levelHU fabricJINTAOat of every government of levelat every of in government levelruption of government against inWENLI PENGruption JIABAO the in nation’s againstruption top the against nation’sthrough the top secretWU nation’s BANGGUOthroughJIANG partnerships top ZEMIN secretthrough partnershipsin secretand three partnerships in Chineseand three in partners,LI andPENG Chinese three in- partners, Chinese in- partners, in-WU BANGGUO sure of the wealth of officials and sure of the wealth of officials and China'scomment president on thecomment record. oncomment the record.Prime onthe the nation.minister record. Overthe the nation. past the twoOver nation. dec- the past OverChina.Former two the China's“Afterdec- pastpresident twoaChina.president while dec- “Afteryou China. realize, a while “After youleaders a realize,whileFormer typicallyPrime you prime leadersrealize, minister followminister typically —leaders rather follow typicallywhich — rather followChina's the —Former topwhich sons, rather legislator president daughters, thewhich sons, the cluding daughters, sons, Shanghai daughters,cludingFormer Alliance Shanghai primecluding Invest- minister Al Shanghailiance Invest- Alliance Invest-China's top legislator their relatives. Conflict-of-inter- DreamWorks DreamWorks and MicrosoftDreamWorks and ades, Microsoft their business and relatives. Microsoftades, and businesspolitics Conflict-of-inter-ades, have and business politics and have politics have than precede —than a fall precede fromthan politi-— precede a fall spousesfrom — apoliti- fall and from closespouses politi- relatives andspouses closeact as relatives andment, close actwas relatives as timedment, act to as coincidewas ment,timed with wasto coincide timed to with coincide with est laws are weak or nonexistent. est laws are weak or nonexistent.wow, there arewow, actually there wow, a are lot thereactually of are a actually lot of a lot of declined to commentdeclined about todeclined comment their to becomeaboutcomment their so about tightlybecome their intertwined, sobecome tightly so intertwined,princelings tightly intertwined, outprincelings there,” saidprincelings out Victor there,” cal outsaid grace.there,” Victor Mr.said cal Bo’s Victor grace. downfall cal Mr. grace. Bo’s this downfall Mr.middlemen Bo’s this downfall or middlemenco-investors this middlemen or in co-investors real theor co-investors high-profile in real the invisit realhigh-profile to thethe Unit-high-profile visit to the visit Unit- to the Unit- And the business dealings of the relationship withrelationship Mr. Jiang.relationship with Mr. Jiang.they with And say,Mr. Jiang.the that businessthey the say, Communist dealings they that say, the of the Communist that the Communist spring, for instance,spring, came forspring, instance, after for estate came instance, projects after cameestate or afterother projects dealsestate thator projects othered deals Statesor other that of deals Xied Jinping, Statesthat ed of China’s Xi States Jinping, of Xi China’s Jinping, China’s political elite are heavily cen- political elite are heavily cen-Shih, a China Shih, scholar a China atShih, North- scholar a China at scholar North- at North- A secret UnitedA secret States UnitedA State secret States Party United Statehas States effectivelyParty State has institution- Party effectively has effectivelywestern institution- University institution-western near University Chicago,western University nearhis Chicago,former near police Chicago,his formerchief inhis policeChong- former chief needpolice in Chong- governmentchief in needChong- approv governmentneedal orgovernment approvvice presidental approv or vice andal president or presumptivevice presidentand presumptive and presumptive sored in the state-controlled Hu Haifeng Wen Yunsong alizedsored anZhang entire in alizedBeili ecosystem the an state-controlled entirealized ofJiang cro- ecosystem an Mianheng entire ecosystem ofHu cro- HaifengAlvin of cro-Jiang WenLiqing XiaolinYunsong told Americanqing Zhang toldLi Xiaopeng diplomats qing Beili American told backing, American diplomatsJiang FengMianheng according diplomats Shaodongbacking, to accordinginvestorsAlvinbacking, Jiang according tonext investors president. toLi investorsXiaolinnext The president. newsnext release president.TheLi newsXiaopeng releaseThe news releaseFeng Shaodong Department cableDepartment from 2009,Department cable re- from cable 2009, from re- 2009, re- using the using label commonlytheusing label the commonly label commonly news media. Son Son ny capitalism.newsWife media. ny “They capitalism. don’tny Son capitalism.want “They don’t “They Son want don’tGrandson want SonDaughterthat Mr. Bo’s wife,that Mr.GuWifeSon Kailai,Bo’s that wife, Mr.had GuBo’swho Kailai, wife,Son have GuhadSon-in-law beenKailai,who involved had have Grandsonwho been in such have involved beendid not in involved suchmentionDaughter did in that suchnot Shanghai mentiondid not thatAl- mentionSon Shanghai that Al- Shanghai Al-Son-in-law leased two yearsleased ago twoby the leasedyears Wiki- agotwo byyears the agoWiki- by the Wiki- slapped on descendantsslapped on slappedof descendants party on descendants of party of party The spoils system, for all the Leaks project,Leaks cited reportsproject,Leaks that cited project, reportsto bring cited The that this reports spoils intoto bring thatthe system, open,” thisto bringinto for said allthe this the open,” into thesaid open,” said ordered the murderordered of theNeilordered murder Hey- the oftransactions. murderNeil Hey- of Neiltransactions. Hey- transactions.liance is partlyliance controlled is partlyliance by Mr.controlled is partly controlledby Mr. by Mr. efforts to keep a lid on it, poses a Served as party Mr. Wen’s son, also effortsAccording to keep to aa lid onPartly it, poses controlsleaders. a Served “You’ve Announcedasleaders. party got the “You’ve plans leaders.children got Mr.“You’ve Chairwomanthe Wen’s children got son, the alsoand children AccordingFormer chairman to a Partly Alsocontrols known as Announced plans Chairwoman and Former chairman Also known as secretaryChina’s to ruling China’selite had knownruling carvedChina’s aselite up Winston ruling hadRoderick carved elite U.S.had up MacFarquhar, carvedStateRoderick up MacFarquhar,Roderick a ChinaShanghai MacFarquhar, Alliance a Chinasecretary to a raiseto China $1 billion knownchiefwood, asexecutive aWinston British ofwood, businessman, U.S. aof British aState wood,state- inbusinessman, a a BritishMoreover,Shanghai businessman, inWilson a Alliance China’s Feng,Moreover, in ahe leading isto raiseMoreover, China’s po- $1 billionJiang, leading China’s the po- leadingsonchiefJiang, of executive a po-former the Jiang,son of presi- of theaof formera son state- of presi-a former presi-Wilson Feng, he is fundamental challenge to the le- specialistfundamental at Harvardspecialist challenge University. atspecialist Harvard to the at le-of University. Harvardcurrent officials, University.of current the children officials,of current of the officials,dispute children the over of children dispute the family’s of overdispute busi- the family’sover the busi- family’s busi- dent, .dent, AJiang persondent, Zemin. who Jiang A person Zemin. who A person who Tsinghuathe Holdings, country’s the economic country’sWen, the pie. is country’sthe economic At economic pie.Department At pie. At Investments, a Tsinghuafor Holdings, his investment Wen,China is thePower Departmentcontrolled powerlitical Investments, families,the generallitical oftena families, throughforlitical his often in-investment families, through often in- throughChina Power in- controlled power the general gitimacy of the Communist Party. “It wouldgitimacy be a tsunami.”“Itof the would Communist be“It a wouldtsunami.” Party. be a tsunami.” ness interests.ness interests.ness interests.termediaries, termediaries, hold secrettermediaries, shares hold secretanswered hold shares secret theanswered shares telephone answered the at telephonethe the telephone at the at the an umbrellathe same time,the many same chairman companies time,the same many of the time, companies manycable, companies she state-backed an umbrellafund, Boyu chairmanInternational, of the the cable,company she until state-backedmanager of a fund, Boyu International, the company until manager of a As the state’s business has be- CriticsAs the charge state’sCritics that business powerfulchargeCritics has that chargebe- powerful that powerful Evidence has Evidence surfaced Evidence has of at surfacedin has dozens of surfaced atof companies,in dozens of at includingofin companies, dozens ofShanghai companies, including Alliance includingShanghai office Alliance Shanghaihere de- office Alliance here office de- here de- company,openly from boast late thatopenly their boaststate-owned tiesopenly tothat the boasttheir China tiesthat to theircontrols the ties partto the of company that company,Capital, from whichlate was state-ownedflagship of Chinaone of controls2008; nowpart ofvice companynuclear that power Capital, which was flagship of one of 2008; now vice nuclear power come increasingly intertwined vestedcome interests increasinglyvested are nowinterestsvested strongintertwined are interests now strong are now strong least $160 millionleast in $160 assets least million held $160 in million assetsmany that held in assets aremany publicly held that many listed are publicly inthat clined are listed publicly to comment. in listedclined into comment.clined to comment. 2008 politicalto 2009. elite givepolitical themSatellite elite a politicalcompet- give them elite agive compet- themthe precious a compet- invested in a 2008 toformed 2009. with a SatelliteChina’s big five thegovernor precious of Shanxi investedinvestment in a fund formed with a China’s big five governor of Shanxi investment fund with a class of families some- itive advantageitive in China’sadvantageitive highly advantagein China’senough inwithhighly China’s to a block classenough highly reformsof familiestoenough block that some- toreforms Fears block that reformsof aFears backlash that ofFears a backlash ofby a close backlash relativesby close of Bo relatives Xilai,by close and of relatives BoHong Xilai, Kong,of and Bo Xilai, ShanghaiHong and Kong, andHong Shanghai else- Kong, andShanghaiZeng else- Qinghuai, and Zeng else- the Qinghuai, brotherZeng of Qinghuai,the brother the of brother of Before that, he was Communications gems market. Microsoft joint Before formerthat, he executive was Communicationspower generating gemsProvince. market. Microsoftestablished joint by theformer executive power generating Province. established by the times called the Red Nobility, an- regulated marketplace.regulated marketplace.regulated marketplace.couldtimes benefit called thecould larger the benefit Red populace.could Nobility, the benefit larger an- populace.the larger populace. the authoritiesthe are authorities investigatingthe authorities are investigatingwhere, are according investigatingwhere, to according interviewswhere, according to Zeng interviews Qinghong, to interviewsZeng China’s Qinghong,Zeng former Qinghong, China’s former China’s former president of a Corporation and venture andagainst in president afrom againstculture of TPG,a theagainst ofa cultureCorporationcompanies. a cultureof and of venturestate-owned and in from TPG, the companies. state-owned alysts say the potential exists for A Chinese sportswearA Chinese compa- A sportswear ChineseChanges sportswear compa-alysts in bankingsay Changes compa- the potential and in financialChanges banking exists in and for banking financial and financial whether otherwhether assets held otherwhether by assets the other withheld assets bankersby the held andwith by investment thebankerswith and bankersad- investmentvice and president, investment ad- vice is also ad-president, in vicethe filmpresident,is also in theis also film in the film state-controlled firm the co-founder of China Netcom, state-controlledas American firm private the co-founder of ChinaGuangdong Netcom, as American private Guangdong a backlash against an increas- ny called Xidelong,ny called for example,Xidelong,ny called forXidelong,services, example,a backlash for for example, instance,services, against couldforservices, an instance, increas-af- for could instance, af- could af- family may havefamily been may family secretly have may beenvisers. have secretly Lately, been secretlyvisers.the progeny Lately,visers. of the the Lately, progenybusiness. the of progeny the He servedbusiness. of the as aHe business.consult- served Heas aserved consult- as a consult- that made scanners New Horizon, a big well as a ‘Redrecent Nobility.’equity‘Red giant. Nobility.’‘Red Nobility.’New Horizon, a big Nuclear Power equity giant. Nuclear Power ingly entrenched elite. They also proudly informedproudly some informed potentialproudly someinformedfect potential theingly some interests entrenched potentialfect of the the interestselite. familyfect Theythe ofof interests alsothe family thatof theof made family scanners of and illegally movedand illegally offshore.and moved illegally offshore.political movedwell as offshore. elite a recent political have retooled elitepolitical have the elite retooledant have for the the retooled patrioticant thefor theepicant patriotic “Be- for the epic patriotic “Be- epic “Be- point to the risk that national pol- to detectinvestors contraband thatinvestors one ofprivate its thatinvestors share- equity one of thatfirm.Zhu its oneRongji,point share- of to its China’stheZhu share- risk Rongji, that primeZhu national China’sDreamWorks min- Rongji, pol- prime China’s deal. to min- detect prime contraband min- privateWen equity Jiabao, firm. Wen the prime Jiabao,Wen min- the Jiabao, primespoilsDreamWorks the system min-Holding prime forspoils deal. a min- new system era,spoils mov-for system a newginning era, for amov- new of theera,ginning mov- Great of Revival.”ginning the Great of the Revival.” Great Revival.”Holding icies may be subverted by lead- or dangerousholders was theholders son of was Wenholders the Jia- son was ofister the Wen fromicies son Jia- of1998 may Wenister to be 2003 Jia- subvertedfrom and ister1998 one tofrom by of 2003 lead- 1998 and to one or2003 dangerous of and one of ister, respondedister, by respondeddemandingister, respondedby a demandinging intoby Corporation. demanding a high-financeing into a ventures high-financeing into high-financeThe ventures film exemplified venturesThe film the exemplified Thehand-in- film exemplified the hand-in- the hand-in-Corporation. ers and former leaders, many of materials. ers and former leaders, many of materials. bao, accordingbao, to one according ofbao, the according to in- onethe of architects theto one in- of theof the China’s architects in- theeconom- ofarchitects China’sprevious econom-of China’s officials, econom-previous the children officials,previous of the officials, morechildren forceful the of children morecrackdown offorcefulmore on crackdowncor- forcefullike crackdown on private cor- THE equity like onNEW cor-YORK private funds, TIMESlike equitywhere private funds,glove equity where relationship funds,glove where between relationshipglove busi- relationship between busi- between busi- THE NEW YORK TIMES whom exert influence long after vestors. (A privatevestors. equity (Avestors. private firm (A equityic private system.whom firm equity His exertic son, system. firm influence Levinic His system. long Zhu, son, after local Levin His son, officials, Zhu, Levinlocal central Zhu, officials, local officials, central officials,ruption. officials, central Without officials,ruption. naming Withoutruption. Mr. Bo naming Withoutthe potentialMr. naming Bo the returns Mr. potential Bo dwarfthe returns potential the ness dwarf returns and the politics. dwarfness the It and was politics.ness shown and It politics. was shown It was shown their retirement, acting to protect joinedtheir China retirement, joined International China actingjoined International Cap-to protect Chinamilitary International Cap- officers,military Cap- police officers,military offi- policeofficers,by name, offi- policePeople’sby name, offi-Daily, People’s bythe name, offi- Daily, People’sbenefits the offi-Daily, from thebenefits serving offi- fromasbenefits a mid- serving fromon as servingnearly a mid- 90,000 ason a mid- nearly movie on 90,000screens nearly movie 90,000 screens movie screens closureMr. reports Wen helped remainMr. found, Wen secret; NewhelpedMr. Hori- Wenwant found, helped to New implement found, Hori- New reform, Hori- their that Zeng Wei,closure the son reports of China’s remainselves. secret; “Thewant party to implement has said an- reform,munist their Partythat promising Zeng Wei, to the over- son of China’s selves. “The party has said an- munist Party promising to over- their own interests. zon, invested zon, in the invested companyzon, in invested inthe companyital inCorporation, their the in companyownital interests. one Corporation, in of theital coun- Corporation, one ofcials.We’re the onecoun- of the talkingcials.We’re coun- aboutcials.We’re talking hun- aboutcial talking Communist hun- aboutcial hun- Party Communist cial newspa- Communist Partydleman newspa- Party to government newspa-dleman to contracts dlemangovernment to governmentacross contracts the country. contractsacross Government theacross country. the Government country. Government proposals to make them public children might say, ‘Dad, what former viceproposals president Zeng to make Qing- themticorruption public children efforts are might a life-and- say, ‘Dad,haul what the nation’sformer media vice president and cul- Zeng Qing- ticorruption efforts are a life-and- haul the nation’s media and cul- Chinese officials and their rela- 2009, according2009, to according Xidelong’s2009, according to try’s Xidelong’s biggestChinese to Xidelong’s try’s investment officials biggest andtry’s banks, their investment biggest rela-dreds investment banks, of thousandsdreds banks, ofof peoplethousandsdreds out of thousandsofper, people denounced outof peopleper, fortune out denounced per, seekers denounced fortuneor holding seekers fortune an executiveor seekers holding post oran holding executive at a anoffices postexecutive andat a schools postoffices at were aand offices orderedschools and were schools ordered were ordered have been shelved repeatedly by about my business?’” hong, boughthave a $32been million shelved man- repeatedlydeath by issue,”about Mr. my Li said.business?’” “But if tural industries,hong, the bought relatives a $32 of million man- death issue,” Mr. Li said. “But if tural industries, the relatives of tives rarely discuss such a del- Web site.) “ThereWeb site.)are soWeb “There many site.) are in “There 1998 so tives many and are rarelyhas soin served many1998 discuss and asin its has such1998 chief served and a del- therehas as itsserved —chief all as trying itsthere chief to— useallthere trying their — all towho usetrying stain their to the usewho party’s their stain purity who the party’s stain by thestate purity party’s monopoly. by puritystate bymonopoly.state monopoly.to buy tickets toin buybulk. tickets Theto mediabuy in bulk.tickets The in mediabulk. The media the party-controlled legislature. sion in Sydney,the party-controlled Australia — are legislature.they want to clean house, it may China’s politicalsion in elite Sydney, are at Australia the — are they want to clean house, it may China’s political elite are at the icate issue publicly. The New ways to partnerways with to the partner waysfamilies towithThere partner theexecutive arefamilies icatewith also forthe issue growingthe familiesexecutive past publicly. decade. con- forexecutive the The past New for connectionsdecade. the past decade. toconnections make money.”connections to make money.”smuggling to makeThere money.” ill-gotten smuggling are also gains growingsmuggling ill-gotten out of con- gains ill-gottenJeffrey out ofZeng, gains the outJeffrey son of ofZeng, theJeffrey for-the son Zeng,was of thethebanned for-son offrom wasthe criticizingfor-bannedwas from it.banned It criticizing from criticizingit. It it. It The party is unlikely to move ignored by theThe Chinese-language party is unlikely be to fatal.” move head of the ignoredcrowd scrambling by the Chinese-language for be fatal.” head of the crowd scrambling for York Times made repeated at- of those in power,”of those said inof one power,” thosecerns fi- in said that power,”Efforts one aYork culture fi- tosaid Times open of oneEfforts nepotismthe made fi- power to repeated openEfforts sec- the to at-power openTo shore thesec- power up confidenceTo sec- shore upTo in confidence the shore the up country. confidencecerns in the thatthe in a country. culture the the of country. nepotismmer Politburo mermember Politburo Zengmer memberPei-Politburobecame Zeng member Pei- one Zeng ofbecame last Pei- year’s onebecame of top- last one year’s of last top- year’s top- more aggressively because fam- news mediamore and aggressively blocked by In- becauseChinese fam- tycoons have also footholds innews a new mediafrontier. and blocked by In- Chinese tycoons have also footholds in a new frontier. tempts to reach public officials nance executivenance who executive hasnance workedand whoexecutive privilege hastor toworked temptswho competition,nurtured has to torworked reach at to the for competition, publictop example,tor to officials competition, forgovernment’s example, for example, government’sability to tacklegovernment’s ability the to tackleSome abilityand the scholars privilegeto tackleSome argue thenurtured scholars thatSome at the the argue scholars topyan, that is argue the a managing thatyan, the is partner a yan, managing is at a managinggrossing partner films. at partnergrossing at films.grossing films. ilies of high-ranking past and cur- ternet censors.ilies of high-ranking pastbeen and cur- quietly welcomed into the The Februaryternet censors. announcement been quietly welcomed into the The February announcement and their relatives for this article, with the relativeswith ofthe senior relativeswith lead- ofthe theof relatives senior could systemand affectlead- of has theirsenior the flowed couldrelatives interestslead- affect down- forcould ofthe this rela- interestsaffect article,problem, the of interests rela- high-ranking problem,of rela- problem, high-ranking leaders high-rankingparty leadersof is the now system hostageparty leaders has is to now partyflowed its hostage own is down- nowKaixin to hostage its ownInv estments, to Kaixin its own Inv a venture-Kaixinestments, Inv estments, a Scholars venture- a describe venture-Scholars the film describeScholars in- the describe film in- the film in- rent officials are now deeply em- Allegationsrent of officialsbribery areand nowcor- deeplyfamilies em- of senior leaders, often of the deal betweenAllegations DreamWorks of bribery and cor- families of senior leaders, often of the deal between DreamWorks often through their companies. ers. “Just makeers. them “Just part makeers. of your“Just ward,them make parttives permeating ofthem oftenof your Li partPeng, through bureaucraciestives of youra formerof their Li tivesPeng, companies.prime of a Liformer Peng,regularly prime a former inveighregularly prime against inveighregularly greedy against inveighunholy greedyward, againstalliances. permeating unholygreedy Cheng alliances. Li, bureaucraciesunholy an ex- Cheng alliances.capital Li, an Cheng firm ex- set Li,capital upan withex- firm twocapital set state- up firm withdustry set two up state- aswith the two newdustry state- playground as thedustry new for as playground the new playground for for bedded in the economic fabric of ruption againstbedded the in nation’s the economic top throughfabric of secret partnerships in and three Chineseruption against partners, the in- nation’s top through secret partnerships in and three Chinese partners, in- None of those reached agreed to deal; it’s perfectlydeal; legal.” it’s perfectlydeal;at it’s everylegal.” perfectlyminister. levelNone legal.” ofLi of governmentXiaolin, thoseminister. reachedhis Lidaughter, minister. in Xiaolin, agreed Lihis officials toXiaolin, daughter, caught his daughter,officials with their caughtofficials hand with in caught theirpert hand withonat everyChinese theirin perthand level politics on in of Chinese government pertwith onthe politics Chinese owned in with politics entities,the withowned China the entities, Develop-owned China entities,princelings. Develop- China Zhang Develop-princelings. Xiaojin,princelings. Zhang direc- Xiaojin, Zhang direc- Xiaojin, direc- the nation. Over the past two dec- leaders typicallythe nation. follow Over — rather the past whichtwo dec- the sons, daughters, cluding Shanghaileaders Al typicallyliance Invest- follow — rather which the sons, daughters, cluding Shanghai Alliance Invest- comment on the record. Worried aboutWorried the appearance aboutWorriedChina. the appearanceaboutis “After thecomment the chairwomana while appearanceis onyou the the realize, and chairwoman record. chiefis the ex- chairwoman andthe chief till. In ex- and 2008, chiefthe for till. instance, ex- In 2008,the atill. for for- In instance, 2008,Brookings forChina. a instance, for- Institution“AfterBrookings a for-a while in Brookings Institutionyou Wash- realize, ment Institution in Wash-Bank and inment Wash-Citic Bank Capital.ment and LiuCiticBank Capital. torand of Citic the Liu Capital. Centertor of Liu thePolitical Centertor of De- the of Political Center of De- Political De- ades, business and politics have than precedeades, — a businessfall from andpoliti- politicsspouses have and close relatives act as ment, was timedthan precede to coincide — a with fall from politi- spouses and close relatives act as ment, was timed to coincide with DreamWorks and Microsoft of improprietyof and impropriety growingof impropriety pub- andwow, growing thereecutive and are pub- DreamWorks ofgrowing actually Chinaecutive pub- Power a lot of and ecutive ofInterna-China Microsoft Power of Chinamer Interna- Shanghai Power Interna-mer Party Shanghai secretary,mer ShanghaiPartyington, secretary, Partywow, said there secretary, itington, would are actually said be ington, difficult it would a said lot Lefei, beof it difficult would the son be Lefei, difficultof another the son Lefei,Politbu- of theanother sonvelopment ofPolitbu- another at TsinghuaPolitbu-velopment Universi-velopment at Tsinghua at Universi-Tsinghua Universi- become so tightly intertwined, cal grace. Mr.become Bo’s downfall so tightly this intertwined,middlemen or co-investors in real the high-profilecal grace. visit to Mr. the Bo’s Unit- downfall this middlemen or co-investors in real the high-profile visit to the Unit- declined to comment about their lic disgust withlic disgustofficial lic corrup- with disgustprincelings official tional, with corrup- declined out official the there,” flagship tional,to corrup- said comment of Victor the one tional, flagship about of the the their of flagshipChen one ofLiangyu, the of oneChen was of the Liangyu,sentencedChen was Liangyu,to sentencedfor thewasprincelings Chinesesentencedto for out government the tothere,” Chinesefor said the to governmentVictor Chinesero member, government to Liuro member,Yunshan, to ro Liu helpsmember, Yunshan,ty, Liu said, helpsYunshan, “Therety, arehelpssaid, cases “Therety, wheresaid, are “There cases whereare cases where they say, that the Communist spring, for they instance, say, came that afterthe Communistestate projects or other deals that ed States ofspring, , for instance, China’s came after estate projects or other deals that ed States of Xi Jinping, China’s relationship with Mr. Jiang. tion, the Communisttion, the Party Communisttion, Shih, has the Communist abig Party China fiverelationship power has scholar Party biggenerating atwithfive has North- powerMr.big compa-Jiang. fivegenerating power18 years generating compa- in prison 18compa- years for bribery in18 prison years and for in briberyprisonpush Shih, through for and bribery a China push major and through scholar politicalpush atmajor re-through North- politicaloperate major the re- political $4.8operate billion re- the Citicoperate $4.8 Pri- billion thepropaganda $4.8 Citic billion Pri- Citicpropaganda ministry Pri- propaganda officials ministry ministry officials officials Party has effectively institution- his former policeParty chief has effectivelyin Chong- institution-need government approval or vice presidenthis former and presumptive police chief in Chong- need government approval or vice president and presumptive A secret United States State repeatedly revisedrepeatedly itsrepeatedly revisedethicswestern nies its revisedUniversity inethics A China. secret its near nies ethics Her United Chicago, in brother, China. nies States in Her Li State China. abuse brother, Her of power. Li brother,abuse One Liof hispower.abuse crimes One of power. offorms his crimesOnewestern aimed of his University atforms crimes extricating aimed formsnear at pow- Chicago, extricating aimedvate at Equity extricating pow- Fund,vate pow- oneEquity ofvate the Fund, big-Equity onespecifically Fund,of the onebig- of ask specificallythe their big- childrenspecifically ask their to children ask their to children to alized an entire ecosystem of cro- qing told alized American an entire diplomats ecosystembacking, of cro- according to investors next president.qing The told news American release diplomats backing, according to investors next president. The news release Department cable from 2009, re- codes and tightenedcodes andfinancial tightenedcodes dis-using and financial tightenedXiaopeng, theDepartment dis- labelfinancial was Xiaopeng, formerly commonly cabledis- fromtheXiaopeng,was head formerly 2009, was re-was the formerly pressinghead thewas businessmenhead pressingwas businessmenpressing to erful businessmenusingpolitical to thefamilieserful political tolabel fromerful commonlybusi-families politicalgest from families state-managed busi- fromgest busi- state-managed funds.gest Last state-managed funds.make films Last funds. whichmake Last they films thenmake which ap- films they which then they ap- then ap- ny capitalism. “They don’t want that Mr. Bo’sny wife, capitalism. Gu Kailai, “They had don’twho want have been involved in such did not mentionthat thatMr. Bo’sShanghai wife, Al-Gu Kailai, had who have been involved in such did not mention that Shanghai Al- leased two years ago by the Wiki- closure rules. closure In its latest rules.closure itera- Inslapped its rules. latestof on another In leaseddescendants itera- its latest two bigof years poweritera- another of party ago companyof by big another the power Wiki- funnel big company power benefits companyfunnel to his benefits closefunnel rela- to benefits hisness close toslappedwithout rela- his close givingonness descendants rela- without immunityness giving withoutof to party immunityyear, giving Alvin toimmunity Jiang,year, the Alvinto grandsonyear, Jiang, Alvin of the grandsonprove.”Jiang, the of grandsonprove.” of prove.” to bring this into the open,” said ordered theto murder bring thisof Neil into Hey- the open,”transactions. said liance is partlyordered controlled the murder by Mr. of Neil Hey- transactions. liance is partly controlled by Mr. Leaks project, cited reports that tion, the party tion,in 2010 the required partytion, in theleaders. all2010 party requiredand “You’ve in isLeaks 2010 now all required gota project,public andthe is children official.all citednow anda reportspublic is now official. that atives, public including official.tives, a land including dealtives, that a including landthose deal leaders. anow thatland in dealpower. “You’vethose that now got inthose the power. childrennow informer power. presidentformer Jiang presidentformer Zemin, president JiangZhao Zemin, , Jiang an Zemin, Zhaoeconomist Xiao, Zhao atan the economist Xiao, an economistat the at the Roderick MacFarquhar, a China wood, a BritishRoderick businessman, MacFarquhar, in a a Moreover, China China’s leading po- Jiang, the sonwood, of a Britishformer businessman,presi- in a Moreover, China’s leading po- Jiang, the son of a former presi- China’s ruling elite had carved up officials to reportofficials the jobs, to officialsreport where-of thecurrent to jobs,report“This officials, where-China’s the is jobs, one theruling where- ofchildren“This the elite mostis had of one“This carved diffi- of the is upnetted one most of diffi- thehis brother,mostnetted diffi- Chen his netted brother, Liang- his Chen brother,And Liang-of withcurrent Chen no officials, Liang-independentAnd with the noAnd children judi- independent withhelped ofno independent judi- establishhelped Boyujudi- establish Capital,helped Boyu a establishUniversity Capital, Boyu a of Capital, University Science a andUniversity of Tech- Science of and Science Tech- and Tech- specialist at Harvard University. dispute overspecialist the family’s at Harvard busi- University.litical families, often through in- dent, Jiang disputeZemin. A over person the who family’s busi- litical families, often through in- dent, Jiang Zemin. A person who the country’s economic pie. At abouts and investmentsabouts and abouts of investments their andcult investments ofchallengesthe their country’s cult of China their challenges economic faces,”cult challengessaid China pie. jun, Atfaces,” aChina $20 said million faces,”jun, profit. said a $20 millionjun, a $20 profit. millionciary profit. in China,ciary he in said, China,ciary party in he China, said,private party he equity said,private firm party that equity private is on firm its equity thatnology is firm on in thatitsBeijing, isnology on said, its in “They Beijing,nology are insaid, Beijing, “They said, are “They are “It would be a tsunami.” ness interests.“It would be a tsunami.” termediaries, hold secret shares answered theness telephone interests. at the termediaries, hold secret shares answered the telephone at the the same time, many companies spouses and children,spouses asandspouses well children, as andMr. as children, wellPei,the an sameas as authority Mr. well time, Pei, as many on anMr. China’s authority companies Pei, an on authorityBut China’s exposés on China’s But in the exposés foreignBut in exposés theleaders foreign in would the leaders foreign essentially wouldleaders be essentially wouldway to essentially raising be wayat least to be raising $1 billion.way at to least raising everywhere,$1 billion.at least $1 billion. aseverywhere, long aseverywhere, the as in- long as as the long in- as the in- Critics charge that powerful Evidence hasCritics surfaced charge of that at powerfulin dozens of companies, including Shanghai AllianceEvidence office hashere surfacedde- of at in dozens of companies, including Shanghai Alliance office here de- openly boast that their ties to the their own incomes.their own But their incomes. the dis- own But incomes.leadership. theopenly dis- But boast the“Wheneverleadership. dis-that theirleadership. “Wheneverties they to the press “Whenever — they likepress the they report — likepress in the 2010 — report likecharged the in 2010report with investigatingcharged in 2010 withcharged them-investigating with Mostinvestigating them- recently, them-Most with recently, the Most Com- with recently,dustry the Com- withis profitable.” thedustry Com- is profitable.”dustry is profitable.” political elite give them a compet- vested interests are now strong political elite give them aleast compet- $160 millionvested ininterests assets areheld nowmany strong that are publicly listed in clined to comment.least $160 million in assets held many that are publicly listed in clined to comment. itive advantage in China’s highly enough to block reforms that Fears ofitive a backlash advantage in China’sby highly close relativesenough of Bo to Xilai, block and reformsHong that Kong,Fears Shanghai of anda backlash else- Zeng Qinghuai,by close the relatives brother of ofBo Xilai, and Hong Kong, Shanghai and else- Zeng Qinghuai, the brother of regulated marketplace. could benefit the larger populace. against regulateda culture marketplace. of the authoritiescould are benefit investigating the larger populace.where, accordingagainst to interviewsa cultureZeng of Qinghong,the authorities China’s former are investigating where, according to interviews , China’s former A Chinese sportswear compa- Changes in banking and financial A Chinese sportswearwhether compa- otherChanges assets in held banking by the and withfinancial bankers and investment ad- vice president,whether is also other in the assets film held by the with bankers and investment ad- vice president, is also in the film ny called Xidelong, for example, services, for instance, could af- ‘Red Nobility.’ny called Xidelong, for example,family mayservices, have been for secretly instance, couldvisers. af- Lately,‘Red the progenyNobility.’ of the business. Hefamily served may as a haveconsult- been secretly visers. Lately, the progeny of the business. He served as a consult- proudly informed some potential fect the interests of the family of proudly informed some potentialand illegallyfect moved the offshore.interests of the familypolitical of elite have retooled the ant for theand patriotic illegally epic moved “Be- offshore. political elite have retooled the ant for the patriotic epic “Be- investors that one of its share- , China’s prime min- investors that one of its Wen share- Jiabao,Zhu Rongji,the prime China’s min- primespoils min- system for a new era, mov- ginning of theWen Great Jiabao, Revival.” the prime min- spoils system for a new era, mov- ginning of the Great Revival.” holders was the son of Wen Jia- ister from 1998 to 2003 and one of holders was the son of Wenister, Jia-respondedister fromby demanding 1998 to 2003 a anding one into of high-finance ventures The film exemplifiedister, responded the hand-in- by demanding a ing into high-finance ventures The film exemplified the hand-in- bao, according to one of the in- the architects of China’s econom- previous officials,bao, according the children to oneof ofmore the forceful in- the crackdown architects ofon China’s cor- likeeconom- privateprevious equity funds, officials, where the childrenglove relationshipof more forceful between crackdown busi- on cor- like private equity funds, where glove relationship between busi- vestors. (A private equity firm ic system. His son, Levin Zhu, local officials,vestors. central (A private officials, equityruption. firm Withoutic system. naming His Mr. son, Bo Levinthe Zhu,potentiallocal returns officials, dwarf central the ness officials, and politics.ruption. It Without was shown naming Mr. Bo the potential returns dwarf the ness and politics. It was shown Mr. Wen helped found, New Hori- joined China International Cap- military officers,Mr. Wen helped police found, offi- Newby name,Hori- People’sjoined ChinaDaily, the International offi- benefits Cap- frommilitary serving officers, as a mid- policeon nearly offi- 90,000by name, movie People’s screens Daily, the offi- benefits from serving as a mid- on nearly 90,000 movie screens zon, invested in the company in ital Corporation, one of the coun- cials.We’re zon, talking invested about in thehun- companycial Communist in ital Corporation, Party newspa- one of thedleman coun- to governmentcials.We’re contracts talking aboutacross hun- the cial country. Communist Government Party newspa- dleman to government contracts across the country. Government 2009, according to Xidelong’s try’s biggest investment banks, dreds of thousands2009, according of people out to Xidelong’sper, denouncedtry’s fortune biggest seekers investmentor banks,holding andreds executive of thousands post at ofa peopleoffices out and per,schools denounced were ordered fortune seekers or holding an executive post at a offices and schools were ordered Web site.) “There are so many in 1998 and has served as its chief there — allWeb trying site.) to “There use their are sowho many stain thein 1998 party’s and has purity served by asstate its chief monopoly.there — all trying to useto buy their ticketswho in stainbulk. The the party’smedia purity by state monopoly. to buy tickets in bulk. The media ways to partner with the families executive for the past decade. connectionsways to make to partner money.” with thesmuggling families ill-gottenexecutive gainsfor the out past of decade.Jeffrey Zeng,connections the son ofto themake for- money.”was bannedsmuggling from criticizing ill-gotten it. It gains out of Jeffrey Zeng, the son of the for- was banned from criticizing it. It of those in power,” said one fi- Efforts to open the power sec- To shore of up those confidence in power,” in the saidthe one country. fi- Efforts to open the powermer Politburosec- To member shore upZeng confidence Pei- became in the onethe of country. last year’s top- mer Politburo member Zeng Pei- became one of last year’s top- nance executive who has worked tor to competition, for example, government’snance ability executive to tackle who the has workedSome scholarstor to argue competition, that the for example,yan, is a managinggovernment’s partner ability at to tacklegrossing the films.Some scholars argue that the yan, is a managing partner at grossing films. with the relatives of senior lead- could affect the interests of rela- problem, high-rankingwith the relatives leaders of seniorparty lead- is nowcould hostage affect to the its interests own Kaixin of rela- Investments,problem, ahigh-ranking venture- leadersScholars party describe is now the hostagefilm in- to its own Kaixin Investments, a venture- Scholars describe the film in- ers. “Just make them part of your tives of Li Peng, a former prime regularly inveighers. “Just against make greedy them partunholy of your alliances.tives ofCheng Li Peng, Li, an a ex- formercapital prime firm regularlyset up with inveigh two state- againstdustry greedy as theunholy new playgroundalliances. Cheng for Li, an ex- capital firm set up with two state- dustry as the new playground for deal; it’s perfectly legal.” minister. Li Xiaolin, his daughter, officials caughtdeal; with it’s theirperfectly hand legal.” in pert on Chineseminister. politics Li Xiaolin, with the his daughter,owned entities,officials China caught Develop- with theirprincelings. hand in pert Zhang on Xiaojin,Chinese direc- politics with the owned entities, China Develop- princelings. Zhang Xiaojin, direc- Worried about the appearance is the chairwoman and chief ex- the till. In 2008,Worried for instance, about a the for- appearanceBrookings is Institution the chairwoman in Wash- and chiefment ex-Bank theand till. Citic In 2008,Capital. for Liuinstance,tor a of for- the CenterBrookings of Political Institution De- in Wash- ment Bank and Citic Capital. Liu tor of the Center of Political De- of impropriety and growing pub- ecutive of China Power Interna- mer Shanghaiof impropriety Party secretary, and growingington, pub- saidecutive it would of be China difficult Power Lefei, Interna- the sonmer of another Shanghai Politbu- Party secretary,velopment atington, Tsinghua said Universi- it would be difficult Lefei, the son of another Politbu- velopment at Tsinghua Universi- lic disgust with official corrup- tional, the flagship of one of the ,lic disgust was sentenced with official to for corrup- the Chinesetional, government the flagship to of onero of member, the Chen Liu Liangyu, Yunshan, was helps sentencedty, said, to “Therefor the are Chinese cases where government to ro member, , helps ty, said, “There are cases where tion, the Communist Party has big five power generating compa- 18 years in prisontion, the for bribery Communist and Partypush has throughbig majorfive power political generating re- operate compa- the18 $4.8 years billion in prison Citic Pri-for briberypropaganda and push ministry through officials major political re- operate the $4.8 billion Citic Pri- propaganda ministry officials repeatedly revised its ethics nies in China. Her brother, Li abuse of power.repeatedly One of his revised crimes itsforms ethics aimednies at extricating in China. Her pow- brother,vate Equity Li abuse Fund, of one power. of the One big- of hisspecifically crimes forms ask their aimed children at extricating to pow- vate Equity Fund, one of the big- specifically ask their children to codes and tightened financial dis- Xiaopeng, was formerly the head was pressingcodes businessmen and tightened tofinancialerful dis-politicalXiaopeng, families wasfrom formerly busi- gestthe head state-managedwas pressing funds. businessmen Last make films to erful which political they thenfamilies ap- from busi- gest state-managed funds. Last make films which they then ap- closure rules. In its latest itera- of another big power company funnel benefitsclosure to his rules. close In rela- its latestness itera- withoutof giving another immunity big power to companyyear, Alvin Jiang,funnel the benefits grandson to his of closeprove.” rela- ness without giving immunity to year, Alvin Jiang, the grandson of prove.” tion, the party in 2010 required all and is now a public official. tives, includingtion, the a land party deal in 2010 that requiredthose nowall inand power. is now a public official.former presidenttives, including Jiang Zemin, a land dealZhao that Xiao,those an economist now in power. at the former president Jiang Zemin, Zhao Xiao, an economist at the officials to report the jobs, where- “This is one of the most diffi- netted his brother,officials to Chen report Liang- the jobs, where-And with no“This independent is one of judi- the mosthelped diffi- establishnetted Boyu his brother, Capital, Chena University Liang- of And Science with andno independent Tech- judi- helped establish Boyu Capital, a University of Science and Tech- abouts and investments of their cult challenges China faces,” said jun, a $20 millionabouts profit. and investmentsciary of their in China,cult challenges he said, China party faces,”private said equityjun, firma $20 that million is on profit. its nology in Beijing,ciary said, in China, “They heare said, party private equity firm that is on its nology in Beijing, said, “They are spouses and children, as well as Mr. Pei, an authority on China’s But exposésspouses in and the children, foreign asleaders well as wouldMr. Pei, essentially an authority be onway China’s to raisingBut at least exposés $1 billion. in the everywhere, foreign leaders as long would as the essentially in- be way to raising at least $1 billion. everywhere, as long as the in- their own incomes. But the dis- leadership. “Whenever they press — liketheir the own report incomes. in 2010 But charged the dis- withleadership. investigating “Whenever them- Most they recently,press —with like the the Com- reportdustry in 2010 is profitable.”charged with investigating them- Most recently, with the Com- dustry is profitable.” Nxxx,2012-05-18,A,014,Bs-BW,E1

A14 N THE NEW YORK TIMES INTERNATIONAL FRIDAY, MAY 18, 2012 Concern About Stability Gives Chinese Officials Leeway to Crush Dissent

By MICHAEL WINES even reward local leaders for do- Neither action by the local au- LINYI, China — The central ing so. The reason is that their thorities was legal. “They used government says that the activist Communist Party careers de- the justification of the one-child Chen Guangcheng is a free man, pend on meeting a series of per- policy and stability mainte- and has promised him an investi- formance goals — from high eco- nance,” said Pu Zhiqiang, a gation of the harrowing abuses nomic growth to low levels of prominent human rights lawyer. he suffered at the hands of public unrest — whose impor- After the detention generated guards here. Mr. Chen’s desper- tance far outweigh any gold stars international headlines, Mr. Co- ate escape last month from per- awarded for following the law. hen said, the public security min- secution to American protection That system gives leaders an ister sent emissaries to Shan- has embarrassed China’s leaders incentive to silence troublemak- dong to discuss the case. Later, in and cast new shadows on their ers by any means in order to win 2006, Mr. Chen was convicted and commitment to the rule of law. high marks for maintaining pub- imprisoned on what experts said But a visit to this municipality lic stability, one of the most im- were trumped-up charges, and in eastern China, where Mr. Chen portance performance metrics. It his detention gained a legal basis. and his family most recently can uncork gushers of money for But when he was released from spent 20 months as prisoners in added security measures to keep prison in September 2010, Mr. their own home, offers no hint of control of a high-profile activist Chen again found himself and his a change in the way China deals like Mr. Chen. family sealed inside their village with its dissidents. And it can pay off for the local home, this time surrounded by a Journalists who sought on Sun- leaders who do the job well. The cordon of fences and security day to talk to residents a few hun- man Mr. Chen has blamed most equipment and a contingent of dred yards from Dongshigu, the for his detention and imprison- guards around the clock. village in Linyi where Mr. Chen ment is Li Qun, who was mayor For the layers of government was held captive, were quickly of Linyi from 2003 to 2007. Just a overseeing Dongshigu, Mr. escorted out by thugs in four few years before that, Mr. Li was Chen’s destitute, remote village, cars, and later were accosted in a studying public administration at detention has become a lucrative burst of arm-wrenching and the University of New Haven and industry. Mr. Chen has claimed name-calling. an intern to the New Haven may- ED JONES/AGENCE FRANCE-PRESSE — GETTY IMAGES that his captors told him it cost or, John DeStefano Jr. about $9.5 million annually to Members of the same gang still Security guards barred reporters from seeing Chen Guangcheng at a Beijing hospital on May 4. keep Mr. Chen’s mother under Mr. Li has since been promoted keep him under house arrest. siege here. Mr. Chen’s nephew to party secretary of Shandong’s The target of that smothering faces a charge of attempted mur- biggest port, Qingdao, and he sits all the other local officials that the tool of choice to deal with dis- security is now in a Beijing hospi- der after he slashed a knife at on the province’s Communist A system geared to there’s a different way of doing sidents and troublemakers. tal, preparing to move with his plainclothes officers who invaded Party standing committee, its allowing local leaders things now. And that would be a A self-taught lawyer who is wife and daughter to the United his home and beat him. Lawyers highest ruling body. very fundamental change.” blind, Mr. Chen crusaded for so- States to study law. But the costly seeking to defend the nephew Only when local measures to ignore the law. A serious inquiry also would cial justice in his native Shan- crackdown continues unabated. have been ordered to drop the blow up into national or global send a signal that when enough dong Province, and in the pro- Outside Dongshigu, police case or face retribution. embarrassments, as they have in publicity and pressure is brought cess imperiled party officials’ vans dot the highway, their lights There is no evidence that the Mr. Chen’s case, is the central hen said. “I can tell you that there to bear, the Communist Party can record not only on keeping order, flashing, and carloads of plain- be forced to change. but also on another important clothes guards roam side roads, government in Beijing ordered government obliged to step in are thousands of cases like this.” this harassment, all of which is il- and order face-saving measures “The main problem with Bei- measure: enforcing the one-child their license plates sometimes To those who study the system, legal under Chinese law. But like investigations. In countless jing is that very often, they con- population-control policy. covered in camouflage cloth. its success makes it unlikely that there is also no any indication other instances, the experts say, done injustices even though they In August 2005, after he began On Sunday, when journalists that Beijing wants it to stop. Beijing quietly tolerates local offi- party leaders will use the embar- know that the local authorities a deftly publicized campaign to sought to visit Mr. Chen’s home In fact, both rights activists cials’ lawlessness, and they do so rassment of the Chen episode to are in the wrong,” said Nicholas help citizens sue the local govern- in Dongshigu, about 33 miles and legal experts say, the system for a simple reason: with rare ex- push for changes that could Bequelin of Human Rights Watch ment over forced late-term abor- from Linyi, they were quickly for dealing with dissidents and ceptions, the system is exceed- themselves prove destabilizing. in Hong Kong. “But many of the tions and sterilizations, the re- and roughly escorted away by se- other troublemakers is geared to- ingly efficient at stifling unrest. “It would have implications not problems that come up in these action was swift: a mob sur- curity guards in plain clothes. ward allowing local leaders to ig- Jerome Cohen, a law professor just in one city or one county, but cases are not isolated — they’re rounded Mr. Chen’s village home, Later, in Yinan, the county seat, nore the law, with Beijing’s some- at New York University and an for the entire country,” Fu Hual- endemic. And Beijing fears that trapping the family inside for one man attacked a photogra- times silent assent. adviser to Mr. Chen, said he was ing, a law professor at Hong backing down on one case would weeks. Foreshadowing the pher who was recording a report- The central government may told by a prominent Chinese Kong University, said in an in- open the floodgates.” events of this spring, Mr. Chen er’s attempt to question him. criminal lawyer that cases like terview. “This is how they govern Mr. Chen’s case, one of the few and a nephew eventually escaped “Get out of China,” the man Shi Da contributed research from Mr. Chen’s were not unusual. the population. If you punish the to get prolonged public scrutiny, to Beijing, only to be seized there yelled at a Chinese news assist- Dongshigu, China, and Edy Yin “They’re only unusual because local government, if you dismiss offers some insights into the in- and returned home by police offi- ant. “You’re not Chinese. You’re from Beijing. you know about them,” Mr. Co- the officials, then you have to tell centives that make repression cers sent from Shandong. a traitor.” In Economic Rise, China’s ‘Princelings’ Learn to Cash In on Their Family Ties

From Page A1 Power and Profit official, helped Merrill Lynch win Family members of many high-ranking officials have profited enormously from China's economic boom, a deal to arrange the $22 billion often through businesses tied to the state. Below, some top Party leaders, and important relatives. public listing of the giant state- run bank I.C.B.C., in what be- came the world’s largest initial public stock offering. Much of the income earned by families of senior leaders may be entirely legal. But it is all but im- possible to distinguish between legitimate and ill-gotten gains be- cause there is no public disclo- HU JINTAO WEN JIABAO JIANG ZEMIN LI PENG WU BANGGUO sure of the wealth of officials and China's president Prime minister Former president Former prime minister China's top legislator their relatives. Conflict-of-inter- est laws are weak or nonexistent. And the business dealings of the political elite are heavily cen- sored in the state-controlled Hu Haifeng Wen Yunsong Zhang Beili Alvin Jiang Li Xiaolin Feng Shaodong news media. Son Son Wife Son Grandson Daughter Son Son-in-law The spoils system, for all the efforts to keep a lid on it, poses a Served as party Mr. Wen’s son, also According to a Partly controls Announced plans Chairwoman and Former chairman Also known as fundamental challenge to the le- secretary to known as Winston U.S. State Shanghai Alliance to raise $1 billion chief executive of of a state- Wilson Feng, he is gitimacy of the Communist Party. Tsinghua Holdings, Wen, is the Department Investments, a for his investment China Power controlled power the general As the state’s business has be- an umbrella chairman of the cable, she state-backed fund, Boyu International, the company until manager of a come increasingly intertwined company, from late state-owned China controls part of company that Capital, which was flagship of one of 2008; now vice nuclear power with a class of families some- 2008 to 2009. Satellite the precious invested in a formed with a China’s big five governor of Shanxi investment fund times called the Red Nobility, an- Before that, he was Communications gems market. Microsoft joint former executive power generating Province. established by the alysts say the potential exists for president of a Corporation and venture and in from TPG, the companies. state-owned a backlash against an increas- state-controlled firm the co-founder of China Netcom, as American private Guangdong ingly entrenched elite. They also that made scanners New Horizon, a big well as a recent equity giant. Nuclear Power point to the risk that national pol- to detect contraband private equity firm. DreamWorks deal. Holding icies may be subverted by lead- or dangerous Corporation. ers and former leaders, many of materials. whom exert influence long after THE NEW YORK TIMES their retirement, acting to protect their own interests. closure reports remain secret; want to implement reform, their that Zeng Wei, the son of China’s selves. “The party has said an- munist Party promising to over- Chinese officials and their rela-seniorproposals leaders tomay make be thementirely public legal.children But mightit is say, ‘Dad,Worried what aboutformer the vice appearance president Zeng of Qing- impropriticorruption- efforts are a life-and- haul the nation’s media and cul- tives rarely discuss such a all del- buthave impossible been shelved to repeatedly distinguish by betweenabout my business?’” le- ety and growinghong, public bought disgust a $32 millionwith official man- cordeath- issue,” Mr. Li said. “But if tural industries, the relatives of the party-controlled legislature. sion in Sydney, Australia — are they want to clean house, it may China’s political elite are at the icate issue publicly. The Newgitimate and ill-gotten gains becauseThere there are is also ruption, growing con-the Communist Party has repeatedly York Times made repeated at- The party is unlikely to move cerns that a culture of nepotism ignored by the Chinese-language be fatal.” head of the crowd scrambling for tempts to reach public officialsno publicmore disclosure aggressively of because the wealth fam- and of privilegeofficials nurtured revised at the its top ethicsnews codes media and and tightened blocked by financial In- Chinese tycoons have also footholds in a new frontier. and their relatives for this article,and theirilies ofrelatives. high-ranking Conflict-of-interest past and cur- of the laws system are hasdisclosure flowed down- rules.ternet In itscensors. latest iteration, the partybeen quietly welcomed into the The February announcement often through their companies.weak orrent nonexistent. officials are now And deeply the businessem- ward, dealings permeating in bureaucracies 2010 requiredAllegations all officials of briberyto report and cor-the jobs,families of senior leaders, often of the deal between DreamWorks None of those reached agreed to bedded in the economic fabric of ruption against the nation’s top through secret partnerships in and three Chinese partners, in- of the political elite are heavily censoredat every in levelthe of governmentwhereabouts in and investments of their spouses comment on the record. the nation. Over the past two dec- China. “After a while you realize, leaders typically follow — rather which the sons, daughters, cluding Shanghai Alliance Invest- DreamWorks and Microsoftstate-controlledades, business news and media. politics have wow, there are actuallyand children, a lot of asthan well precede as their — a fallown from incomes. politi- Butspouses and close relatives act as ment, was timed to coincide with declined to comment about their Thebecome spoils so system, tightly for intertwined, all the effortsprincelings to keep out there,”the said disclosure Victor calreports grace. remain Mr. Bo’s secret; downfall proposals this middlemen or co-investors in real the high-profile visit to the Unit- relationship with Mr. Jiang. a lid onthey it, say, poses that a the fundamental Communist challengeShih, a China to scholarto make at North- them spring,public forhave instance, been shelved came after repeatestate- projects or other deals that ed States of Xi Jinping, China’s A secret United States State Party has effectively institution- western University near Chicago, his former police chief in Chong- need government approval or vice president and presumptive the legitimacyalized an entire of the ecosystem Communist of cro- Party. As the edly by the party-controlledqing told American legislature. diplomats backing, according to investors next president. The news release Department cable from 2009, re- using the label commonly ny capitalism. “They don’t want that Mr. Bo’s wife, Gu Kailai, had who have been involved in such did not mention that Shanghai Al- leased two years ago by the Wiki-state’s business has become increasinglyslapped interon descendants- The of party party is unlikely to move more aggres- to bring this into the open,” said ordered the murder of Neil Hey- transactions. liance is partly controlled by Mr. Leaks project, cited reports twined that with a class of families sometimesleaders. called “You’ve gotsively the children because families of high-ranking past Roderick MacFarquhar, a China wood, a British businessman, in a Moreover, China’s leading po- Jiang, the son of a former presi- China’s ruling elite had carved up of current officials, the children of the country’s economic pie.the At Redspecialist Nobility, at Harvard analysts University. say the potential ex- and current officialsdispute are over now the deeply family’s embedded busi- litical families, often through in- dent, Jiang Zemin. A person who the same time, many companiesists for“It woulda backlash be a tsunami.” against an in theness economic interests. fabric of the nation.termediaries, hold secret shares answered the telephone at the openly boast that their ties toincreasingly the Critics entrenched charge that powerfulelite. OverEvidence the past hastwo surfaceddecades, of business at in dozens of companies, including Shanghai Alliance office here de- political elite give them a compet-They vestedalso point interests to the are nowrisk strongthat andleast politics $160 millionhave become in assets so held tightlymany that are publicly listed in clined to comment. itive advantage in China’s highly enough to block reforms that Fears of a backlash by close relatives of Bo Xilai, and Hong Kong, Shanghai and else- Zeng Qinghuai, the brother of regulated marketplace. nationalcould policies benefit the may larger be populace. sub- against a culture of intertwined,the authorities they are say, investigating that the Comwhere,- according to interviews Zeng Qinghong, China’s former A Chinese sportswear compa-vertedChanges by leaders in banking and and former financial munistwhether Party other hasassets effectively held by the instiwith- bankers and investment ad- vice president, is also in the film ny called Xidelong, for example,leaders,services, many for of instance, whom could exert af- ‘Red Nobility.’ tutionalizedfamily may an have entire been ecosystem secretly visers. of Lately, the progeny of the business. He served as a consult- fect the interests of the family of and illegally moved offshore. political elite have retooled the ant for the patriotic epic “Be- proudly informed some potentialinfluence long after their retire- crony capitalism. “They don’t want investors that one of its share- Zhu Rongji, China’s prime min- Wen Jiabao, the prime min- spoils system for a new era, mov- ginning of the Great Revival.” holders was the son of Wen ment, Jia- isteracting from to 1998 protect to 2003 their and oneown of to ister,bring responded this into by demandingthe open,” a saiding into high-finance ventures The film exemplified the hand-in- bao, according to one of theinterests. in- the architects of China’s econom- previous officials, theRoderick children MacFarquhar,of more forceful acrackdown China specialist on cor- like at private equity funds, where glove relationship between busi- vestors. (A private equity firm Chineseic system. officials His son, and Levin their Zhu, relativeslocal officials,rarely centralHarvard officials, University.ruption. “It Without would naming be a tsunami.” Mr. Bo the potential returns dwarf the ness and politics. It was shown Mr. Wen helped found, New Hori- joined China International Cap- military officers, police offi- by name, People’s Daily, the offi- benefits from serving as a mid- on nearly 90,000 movie screens zon, invested in the companydiscuss in ital such Corporation, a delicate one ofissue the coun-publicly.cials.We’re The New talking aboutCritics hun- chargecial Communistthat powerful Party vested newspa- interdleman- to government contracts across the country. Government 2009, according to Xidelong’sYork Timestry’s biggest made investment repeated banks, attemptsdreds to of reach thousands ests of people are nowout per,strong denounced enough fortune to block seekers reformsor holding an executive post at a offices and schools were ordered Web site.) “There are so manypublicin officials 1998 and and has servedtheir relatives as its chief forthere this article, — all trying that to usecould their benefitwho the stain larger the party’s populace. purity Changes by state monopoly. to buy tickets in bulk. The media ways to partner with the familiesoften executivethrough fortheir the pastcompanies. decade. Noneconnections of those to makein money.” banking andsmuggling financial ill-gotten services, gains for out instance, of Jeffrey Zeng, the son of the for- was banned from criticizing it. It of those in power,” said one fi- Efforts to open the power sec- To shore up confidence in the the country. mer Politburo member Zeng Pei- became one of last year’s top- nance executive who has workedreachedtor agreed to competition, to comment for example, on the record.government’s abilitycould to tackle affect the the Someinterests scholars of arguethe family that the of Zhuyan, is a managing partner at grossing films. with the relatives of senior lead- DreamWorkscould affect the andinterests Microsoft of rela- problem,declined high-rankingto Rongji, leaders China’sparty prime is nowminister hostage from to its1998 own to 2003Kaixin Investments, a venture- Scholars describe the film in- ers. “Just make them part of yourcommenttives aboutof Li Peng, their a formerrelationship prime withregularly Mr. inveigh Ji- againstand one greedy of theunholy architects alliances. of Cheng China’s Li, an economic ex- capital firm set up with two state- dustry as the new playground for deal; it’s perfectly legal.” minister. Li Xiaolin, his daughter, officials caught with their hand in pert on Chinese politics with the owned entities, China Develop- princelings. Zhang Xiaojin, direc- Worried about the appearanceang. is the chairwoman and chief ex- the till. In 2008, for system.instance, aHis for- son,Brookings Levin Zhu, Institution joined in China Wash- Interment- Bank and Citic Capital. Liu tor of the Center of Political De- of impropriety and growing pub- A ecutivesecret of United China Power States Interna- State Departmentmer Shanghai Partynational secretary, Capitalington, Corporation, said it would one be of difficult the counLefei,- the son of another Politbu- velopment at Tsinghua Universi- lic disgust with official corrup-cable tional,from 2009, the flagship released of one two of years the Chen ago Liangyu,by the wastry’s sentenced biggest to investmentfor the Chinese banks, government in 1998 and to hasro member, Liu Yunshan, helps ty, said, “There are cases where tion, the Communist Party WikiLeaks has big five project, power generating cited reports compa- that18 years China’s in prison forserved bribery as and its chiefpush executive through major for the political past re-decade.operate the $4.8 billion Citic Pri- propaganda ministry officials repeatedly revised its ethics nies in China. Her brother, Li abuse of power. One of his crimes forms aimed at extricating pow- vate Equity Fund, one of the big- specifically ask their children to codes and tightened financialruling dis- Xiaopeng, elite had was carved formerly up the the head country’swas pressing eco- businessmenEfforts to to openerful political the power families sector from tobusi- compegest- state-managed funds. Last make films which they then ap- closure rules. In its latest itera-nomicof pie. another At the big same power time, company manyfunnel companies benefits to tition, his close for rela- example,ness without could givingaffect immunity the interests to year, of Alvin Jiang, the grandson of prove.” tion, the party in 2010 requiredopenly all and boast is now that a public their official. ties to the politicaltives, including elite a relatives land deal thatof Lithose Peng, now a in former power. prime minister.former president Jiang Zemin, Zhao Xiao, an economist at the officials to report the jobs, where- “This is one of the most diffi- netted his brother, Chen Liang- And with no independent judi- helped establish Boyu Capital, a University of Science and Tech- abouts and investments of theirgive themcult challenges a competitive China faces,” advantage said jun, in a China’s$20 million profit.Li Xiaolin, his ciarydaughter, in China, is the he chairwoman said, party andprivate equity firm that is on its nology in Beijing, said, “They are spouses and children, as wellhighly as Mr. regulated Pei, an authority marketplace. on China’s But exposés inchief the executive foreign leaders of China would Power essentially International, be way to raising at least $1 billion. everywhere, as long as the in- their own incomes. But the dis- A leadership.Chinese sportswear “Whenever theycompanypress —called like the the report flagship in 2010 ofcharged one of with the investigating big five power them- genMost- recently, with the Com- dustry is profitable.” Xidelong, for example, proudly informed some erating companies in China. Her brother, Li potential investors that one of its shareholders Xiaopeng, was formerly the head of another big was the son of Wen Jiabao, according to one of power company and is now a public official. the investors. (A private equity firm, New Ho- “This is one of the most difficult challenges rizon, that the son, Wen Yunsong helped found China faces,” said Mr. Pei, an authority on Chi- invested in the company in 2009, according to na’s leadership. “Whenever they want to imple- Xidelong’s Web site.) “There are so many ways ment reform, their children might say, ‘Dad, to partner with the families of those in power,” what about my business?’ ” said one finance executive who has worked with There are also growing concerns that a cul- the relatives of senior leaders. “Just make them ture of nepotism and privilege nurtured at the part of your deal; it’s perfectly legal.” top of the system has flowed downward, perme- ating bureaucracies at every level of govern- an expert on Chinese politics with the Brook- ment in China. “After a while you realize, wow, ings Institution in Washington, said it would there are actually a lot of princelings out there,” be difficult for the Chinese government to push said Victor Shih, a China scholar at Northwest- through major political reforms aimed at extri- ern University near Chicago, using the label cating powerful political families from business commonly slapped on descendants of party without giving immunity to those now in power. leaders. “You’ve got the children of current of- And with no independent judiciary in Chi- ficials, the children of previous officials, the na, he said, party leaders would essentially be children of local officials, central officials, mili- charged with investigating themselves. “The tary officers, police officials.We’re talking about party has said anticorruption efforts are a life- hundreds of thousands of people out there — all and-death issue,” Mr. Li said. “But if they want trying to use their connections to make money.” to clean house, it may be fatal.” To shore up confidence in the government’s Chinese tycoons have also been quietly wel- ability to tackle the problem, high-ranking lead- comed into the families of senior leaders, often ers regularly inveigh against greedy officials through secret partnerships in which the sons, caught with their hand in the till. In 2008, for daughters, spouses and close relatives act as instance, a former Shanghai Party secretary, middlemen or co-investors in real estate proj- Chen Liangyu, was sentenced to 18 years in ects or other deals that need government ap- prison for bribery and abuse of power. One of proval or backing, according to investors who his crimes was pressing businessmen to funnel have been involved in such transactions. benefits to his close relatives, including a land Moreover, China’s leading political fami- deal that netted his brother, Chen Liangjun, a lies, often through intermediaries, hold se- $20 million profit. cret shares in dozens of companies, including But exposés in the foreign press — like the many that are publicly listed in Hong Kong, report in 2010 that Zeng Wei, the son of China’s Shanghai and elsewhere, according to inter- former vice president Zeng Qinghong, bought a views with bankers and investment advisers. $32 million mansion in Sydney, Australia — are Lately, the progeny of the political elite have ignored by the Chinese-language news media retooled the spoils system for a new era, mov- and blocked by Internet censors. ing into high-finance ventures like private eq- Allegations of bribery and corruption uity funds, where the potential returns dwarf against the nation’s top leaders typically fol- the benefits from serving as a middleman to low — rather than precede — a fall from po- government contracts or holding an executive litical grace. Mr. Bo’s downfall this spring, for post at a state monopoly. instance, came after his former police chief in Jeffrey Zeng, the son of the former Polit- told American diplomats that Mr. buro member Zeng Peiyan, is a managing part- Bo’s wife, Gu Kailai, had ordered the murder of ner at Kaixin Investments, a venture-capital Neil Heywood, a British businessman, in a dis- firm set up with two state-owned entities, China pute over the family’s business interests. Development Bank and Citic Capital. Liu Lefei, Evidence has surfaced of at least $160 mil- the son of another Politburo member, Liu Yun- lion in assets held by close relatives of Bo Xilai, shan, helps operate the $4.8 billion Citic Private and the authorities are investigating whether Equity Fund, one of the biggest state-managed other assets held by the family may have been funds. Last year, Alvin Jiang, the grandson of secretly and illegally moved offshore. former president Jiang Zemin, the former Com- Wen Jiabao, the prime minister, responded munist Party leader and president, helped es- by demanding a more forceful crackdown on tablish Boyu Capital, a private equity firm that corruption. Without naming Mr. Bo by name, is on its way to raising at least $1 billion. People’s Daily, the official Communist Party Most recently, with the Communist Party newspaper, denounced fortune seekers who promising to overhaul the nation’s media and stain the party’s purity by smuggling ill-gotten cultural industries, the relatives of China’s po- gains out of the country. litical elite are at the head of the crowd scram- Some scholars argue that the party is now bling for footholds in a new frontier. hostage to its own unholy alliances. Cheng Li, The February announcement of the deal between DreamWorks and three Chinese part- shown on nearly 90,000 movie screens across ners, including Shanghai Alliance Investment, the country. Government offices and schools was timed to coincide with the high-profile visit were ordered to buy tickets in bulk. The media to the United States of Xi Jinping, China’s vice was banned from criticizing it. It became one of president and presumptive next president. The last year’s top-grossing films. news release did not mention that Shanghai Al- Scholars describe the film industry as the liance is partly controlled by Jiang Zemin’s son new playground for princelings. Zhang Xiaojin, Jiang Mianheng. A person who answered the director of the Center of Political Development telephone at the Shanghai Alliance office here at Tsinghua University, said, “There are cases declined to comment. where propaganda department officials spe- Zeng Qinghuai, the brother of Zeng Qing- cifically ask their children to make films which hong, China’s former vice president, is also in they then approve.” the film business. He served as a consultant for Zhao Xiao, an economist at the University of the patriotic epic “Beginning of the Great Reviv- Science and Technology in Beijing, said, “They al.” The film exemplified the hand-in-glove rela- are everywhere, as long as the industry is prof- tionship between business and politics. It was itable.” n