About 100 family members and friends of those killed in a train collision near Wenzhou, Zhejiang province, protested late July 25 outside municipal government offices, demanding to speak with railway officials. Thirty-nine people, including two Americans, were killed and 193 were injured July 23 when a high-speed train ran into the back of another train that was stalled on top of a viaduct. Though the protest was local, it has drawn attention to a national issue that could undermine the credibility of the Communist Party. The train collision occurred when train D301 ran into the back of train D3115, which was stalled on top of a viaduct. D301 was traveling between Fuzhou, Fujian province, and Beijing, and D3115 was en route between Hangzhou and Wenzhou in Zhejiang province. Most reports claim that a lightning strike caused D3115 to lose power, but a Xinhua report claimed that the train was moving at the time. Whatever the case may be, the signaling system meant to stop trains during emergencies failed. That failure is indicative of a larger problem that has its origins in the rushed development of China's high-speed rail (HSR) network. Much of the blame for the HSR network's safety shortcomings has been placed on former Railways Minister Liu Zhijun by other officials. Liu was removed from office in mid-February, officially due to corruption charges. China's HSR network rapidly expanded under Liu, becoming the longest in the world. This development was important, not only to relieve China's already overburdened transportation systems, but also as a source of national pride. The problem was that Communist Party officials had pushed for the network to be developed so rapidly since the 1990s that the Railways Ministry likely instituted broad cost-cutting measures to get the projects done quickly and cheaply. Moreover, the ministry took on substantial debt at the end of 2009, estimated at 1.3 trillion yuan (about $200 billion), and there have been allegations of massive corruption in the bidding, construction and operating aspects of the HSR expansion. (Reports have said that the accident could also harm China's exports of HSR equipment and technology.) The new railways minister, Sheng Guangzu, recognized the issue when he took office in February. Sheng announced that inspections had revealed numerous safety problems on Chinese railroads, including with the signaling system. But the ministry's response was insufficient to remedy the situation. The trains continued to run and the problems were not fixed, so an accident could only be expected. The Communist Party of China has attempted to deflect public outrage over the crash. Vice Premier Zhang Dejiang said July 24 during a visit to the crash site that an investigative panel would be set up to determine the cause of the accident. Zhang said that those responsible would be punished in accordance with the law. The Railways Ministry already has fired and will investigate the chief of the Shanghai Railway Bureau, his deputy and the bureau's Communist Party chief. Additionally, Sheng ordered a two-month safety check on railway operations with a focus on implementing maintenance standards and intensifying checks on power connections. There also are indications that the Chinese government may slow the pace of its rapid HSR network expansion. But as an editorial on a website affiliated with People's Daily, the Party's leading newspaper, pointed out, there is a fundamental problem in China with poor implementation of safety plans in everything from public transport to coal mining to food safety. The article, titled "No Development Without Safety," said that the Railways Ministry had warned of the risks posed by lightning strikes four days prior to the collision but had not put emergency plans into place. Until these safety issues are addressed, foreigners in China should be wary of all new construction but especially of China's newer HSR systems. Most of the time when the Chinese public demonstrates, it is over a local matter or land dispute and focuses on the local government. The train crash, and concurrent fears about the safety of the HSR network, has instead given rise to anger directed against the central government. These sorts of large-scale incidents on a national stage hurt the Party's credibility. So far the public response has been most vocal on Internet polls, microblogs and forums. In fact, it was the proliferation of postings on Sina Weibo (the Chinese version of Twitter) about the July 23 crash that led the national media to report on the accident after censoring it early on. If more accidents involving national infrastructure occur, the public response will become an increased worry for Beijing and firing a few officials will not be enough.
Chinese Fugitives Abroad
Authorities arrested Lai Changxing upon his arrival at Beijing Capital International Airport on July 23, after a Canadian court ruled July 21 that he could be repatriated. Lai founded a business conglomerate, the Yuanhua Group, in 1994 in the special economic zone of Xiamen, Fujian province. The group took advantage of the zone's free trade policies and allegedly dodged 30 billion yuan in taxes between 1996 and 1999 by smuggling petroleum products, cars, electronics and cigarettes worth a total of 53 billion yuan. Lai was also believed to be involved in Chinese organized crime groups and to have committed other crimes. After Lai learned of rumors of an impending investigation of his business in 1999, he fled to Vancouver, Canada, where he lived freely until his repatriation. With Chinese media and authorities focused on prosecuting corrupt Chinese expatriates, it will be important to see what comes out of Lai's return and trial in China. Many wealthy Chinese — as well as corrupt low- or mid-level government officials — have fled to western Canada to escape prosecution, and others have invested there as a safe offshore location for their wealth. The Chinese Central Discipline Inspection Commission estimated that corrupt officials have fled China with a total of $50 billion over the past 30 years, and the Chinese Academy of Social Science estimates there are around 4,000 fugitive officials. Lai's repatriation might suggest an agreement was reached between the Canadian and Chinese governments on the return of Chinese fugitives, which could cause other Chinese businessmen and officials to look for alternative havens, both for themselves and for their money. There is also the possibility that Lai or other repatriates could provide names of Chinese government officials or businessmen involved in corruption. As he was active in China more than a decade ago, most officials with ties to Lai have probably either left government or have been rooted out; investigations of the highest-level officials, however, were cut short at the time. More than 600 people were investigated in Lai's case, and around 100 were convicted of involvement in bribery, smuggling or tax evasion. Among these were Xiamen government officials, including the deputy mayor and a section chief of the customs bureau. Fourteen individuals received the death penalty, including the national deputy minister of public security. There are reports that Lai's case could implicate Jia Qinglin, who was the Party chief of Fujian province during Lai's business reign and now is informally the fourth-ranked Party leader. Jia's wife, Lin Youfang, also could be implicated; as the former Party secretary of Fujian International Trade Corp., Lin had oversight of any international trade in Fujian. Lai's case could pose problems for Beijing, which is in the midst of a leadership transition, if it raises the issue of high-level government corruption. Another issue is that, before repatriating Lai, Canada demanded that China agree not to execute him. Many people have been executed in China for corruption less severe than that of which Lai is accused, and if the Chinese people demand harsh punishment for him, it could pose a problem for the handling of his prosecution. It will be interesting to see who goes down with Lai as well as where Chinese networks that previously settled in Canada will end up should they decide to leave. (click here to view interactive map)
July 20
Two South Koreans were on trial in Changchun, Jilin province, accused of espionage. According to Chosun Ilbo, the two are National Intelligence Service officers who were hiring Chinese to collect information on North Korean leadership when they were arrested in Shenyang, Liaoning province, in August 2010.
A man was sentenced to five months in prison in Xiangxiang, Hunan province, for selling equipment identified by the Ministry of State Security as espionage equipment. The man purchased 39 sets of mobile phone monitoring software over the Internet, then he resold them at higher prices.
A former deputy director of a transportation management division within the Yuncheng Department of Transportation was on trial in Shanxi province on 11 different charges. He was accused of involvement in organized crime, bribery, illegal gun possession and drug trafficking, among other things. Eight of his associates were also on trial.
A man was arrested by police in Shaoguan, Guangdong province, for carrying five self-made guns, 12 bullets and two small packages of gunpowder. The man planned to launch a revenge attack against someone over debt disputes.
July 21
A July 18 public hearing discussed CCTV cameras used to monitor public areas in Changsha, Hunan province, the People's Daily reported. The hearing revealed that nearly 300 million yuan had been invested in establishing more than 100 surveillance offices and 33,173 cameras. The government plans to install another 26,000 cameras by the end of 2011.
The Chongqing Public Security Bureau reported a crackdown on a group of more than 20 people organizing car break-ins. Eighteen suspects have been arrested so far.
Chen Mingyang, a Chinese People's Political Consultative Conference member and chairman of a local company, was sentenced to 20 years in prison and a 1.04 million yuan fine in Chongqing. He was convicted of organized crime, illegal land seizures, forced transaction, running a casino, fraud and other crimes. Fourteen of Chen's associates were also punished.
Three criminal suspects were arrested for alleged contract fraud in Dongguan, Guangdong province. The men pretended to be military officers and bosses of enterprises to falsify construction contracts for military projects. They stole 3 million yuan in deposits before victims reported the fraud.
July 22
A local government spokesman told South China Morning Post that an official campaign to ban black veils and robes among Muslim Uighur women was launched a few months ago in Hotan, Xinjiang. These items are not typical for Uighur populations but are endorsed by some Muslims. Some locals claimed that the campaign was the reason for the July 18 violence clash between protesters and security forces. Local authorities and some witnesses have claimed that men from outside of Hotan organized the July 18 attack and hid their weapons in boxes as they approached the police station.
Reports from Hotan indicate tensions are still high. Shops in Hotan's main square have been closed intermittently for fear of more violence. Rumors spread that a Han Chinese couple was murdered on a bridge at 1 a.m. July 21, and three other people were murdered the same day. There is also a report of dozens of Han Chinese protesting outside the public security bureau, saying the rumors show police are not protecting Han people. There is no way to judge the veracity of such claims at this time.
A bus caught fire near Xinyang, Henan province, killing 41 people and leaving only six survivors. A passenger was reportedly carrying flammable material that caught fire, according to the driver. The bus had only 35 sleeping berths yet had 47 passengers traveling from Weihai, Shandong province, to Changsha, Hunan province. Xinhua reported July 25 that six suspects were detained in connection with the fire.
The public security bureau of Shanxi province announced a three-month investigation that led to the arrests of 26 suspects involved in drug trafficking and the seizure of 4.8 kilograms (10.6 pounds) of drugs in Taiyuan. The suspects are accused of trafficking drugs through Sichuan, Shanxi and Hebei provinces.
Police in Fuding, Fujian province, arrested two suspects accused of organizing prostitution. They also freed five prostitutes, three of whom were underage.
Twenty-one people received sentences from 18 months to life in prison and were fined for transnational telecommunications fraud in Zhangzhou, Fujian province. They were arrested in Zhangzhou and Xiamen after defrauding overseas Chinese in Australia, the United States and Taiwan.
July 23
Three suspects were arrested in Zigong, Sichuan province, in connection with a robbery in Luoyuan, Fujian province. The suspects stole 700,000 yuan worth of jewelry. They were armed with knives and imitation guns and had 445,700 yuan and 334.05 grams (11.8 ounces) of gold jewelry in their possession upon arrest.
July 25
Liu Zhuozhi, former vice chairman of Inner Mongolia, was expelled from the Communist Party after a corruption investigation. The Central Commission for Discipline Inspection said that Liu had accepted bribes and used his position to unfairly help others, and that his case had been turned over to prosecutors.
Seven people were on trial for liability in connection with a November 2010 fire in Shanghai that killed 58 people. Two unlicensed welders pled guilty to using their tools while flammable insulation was exposed. The other five were accused of bribery and major liability as part of the development and subcontracting firms handling the construction.
A reporter for Caixin, a weekly media outlet, claimed that her Gmail account was hacked by individuals in Longhui, Hunan province, where she had reported on a child kidnapping scandal. Caixin's internal investigation claimed it traced the attacks after the reporter received an automatic alert from Google.
The New York Times reported a new regulation to require any business offering free Wi-Fi in Beijing to install web monitoring that costs $3,100. The program is made by Shanghai Rain-Soft Software and allows public security officials to monitor all of the business' Internet traffic.
Nanbu county police told a reporter in Sichuan province that a criminal gang had been arrested on accusations of illegal possession and production of guns and organizing prostitution. One of the suspects learned to make guns while enrolled in technical school. Seven pistols, five powder shotguns, two air guns, one imitation gun and three knives were seized.
Five suspects in a clenbuterol poisoning case were convicted and sentenced in Jiaozuo, Henan province. One received a suspended death sentence while others received prison sentences from nine years to life.
A light helicopter being used by the Beijing Municipal Forest Protection Station to spray pesticides crashed near Tiekuangyu village in Beijing, killing the pilot.
July 26
Officials announced the closure of two counterfeit Apple stores in Kunming, Yunnan province. The stores, which sell counterfeit products, became an Internet sensation due to their similarities to real Apple stores. There are three similar stores in Kunming that have not been shut down, at least one because it has an Apple reseller license.
China Aid, a U.S.-based group, announced that pastor Shi Enhao was sentenced to two years in a labor camp after organizing illegal religious gatherings in Suqian, Jiangsu province.
The local public security bureau announced that around 200 people protested in Anshun, Guizhou province, after a street merchant was beaten to death by urban management officers, known as cheng guan. People gathered after the one-legged man was beaten to death around 1:40 p.m., and they continued to protest late into the night. The incident is under investigation.
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