Pistons, PX, petroleum, politics: checking in with Chairman Ye Jianming

The incisive gaze of CEFC (Huaxin) Chairman Ye Jianming

The commanding gaze and handshake of CEFC / Huaxin Chairman Ye Jianming (source).

Since this blog last checked in with Ye Jianming in 2013, the youthful Chairman and his $40 billion CEFC (Huaxin) oil trading, storage and finance conglomerate have gone from strength to strength. It now ranks as the world’s 229th largest company by revenue.

CEFC originally attracted my attention due to Dai Xu‘s South China Sea warmongering under a “CEFC Strategic Analyst” title between 2011 and 2013. The company hasn’t been associating itself with that kind of militarism of late (at least not publicly), but its mystique has only intensified as various new information has come to light.

Here’s a brief rundown of what’s emerged since 2013:

  • Chairman Ye Jianming is not Lt-Gen Ye Xuanning’s son, nor Marshal Ye Jianying’s grandson. Far from being a princeling — my own and others’ best guess as to his background — he was born into a family of boatmen in the Fujian hinterland.
  • However, just as a blood relationship was finally disconfirmed, Chairman Ye turns out to be business partners with Ye Xuanning’s daughter in an entity bearing the PLA’s famous Carrie (凯利) brand.
  • The company’s oil trading business originates with assets confiscated from Fujian smuggling kingpin Lai Changxing, which it acquired in 2006. Chinese financial media reporting indicates that before becoming an oil baron, Ye made pots of gold by purchasing a state-owned piston factory, and wholesaling the industrial chemical PX.
  • Evidence of Chairman Ye’s involvement in the PLA General Political Department Liaison Department’s (GPD-LD) CAIFC system has continued to accumulate. Yet the GPD-LD’s fortunes appear to have been falling almost as fast as Chairman Ye’s have been rising.
  • There are signs the rise of Chairman Ye may be related to the rise of Chairman Xi — from Fujian via Shanghai, to Beijing, and out onto the Belt and Road. CEFC/Huaxin laid the groundwork for Xi’s triumphant state visit to the Czech Republic in March 2016, establishing a “key link” in his signature foreign policy initiative.

For those who find this all as irresistably intriguing as i do, these points are detailed below, followed by a selection of aphorisms from the expanding corpus of Ye Jianming’s Thought, and a brief personal disclaimer.

Read the rest of this entry »


Exploring China’s “Maritime Consciousness”, public opinion and nationalism

Maritime consciousness report cover

Somehow i’ve omitted to mention the report released in November on my first survey of Chinese public opinion on the country’s maritime disputes: Exploring China’s ‘Maritime Consciousness’: public opinion on the South and East China Sea disputes.

If you’re reading this blog you would probably have come across the report already. But since it’s based on on 1,413 conversations on the South China Sea and Diaoyu disputes, it probably does warrant a mention on this blog.

I’m doing a presentation and panel discussion on the report today (Monday, March 2) at the Australian Strategic Policy Institute, which Canberra-based readers may be interested in. I think the RSVP date has passed, but it’s probably a case of the more the merrier so if you’re keen i suggest clicking the link and getting in contact with ASPI.

Also based on the survey, a recent piece published on the University of Nottingham’s excellent China Policy Institute blog, as part of a special issue on nationalism in Asia. My contribution to that below:

~

Nationalism and Chinese public opinion

China Policy Institute Blog, February 3, 2015

By Andrew Chubb

Few terms in public political discourse are as contested, contradictory and downright slippery as nationalism. Deployed to describe an enormous variety of social movements, ideologies, popular attitudes, mass sentiments, elite policy agendas and even consumption patterns, use of the word carries with it a risk of stringing together superficially related phenomena with very different causes under the same label. The recently released results of a survey on the South and East China Sea disputes offer further reason for caution when approaching Chinese public opinion through the lens of nationalism.

Read the rest of this entry »


China’s Information Management in the Sino-Vietnamese Confrontation: Caution and Sophistication in the Internet Era

header_cb

Jamestown China Brief piece published last week:

~

China’s Information Management in the Sino-Vietnamese Confrontation: Caution and Sophistication in the Internet Era

China Brief, Volume 14 Issue 11 (June 4, 2014)

After the worst anti-China violence for 15 years took place in Vietnam this month, it took China’s propaganda authorities nearly two days to work out how the story should be handled publicly. However, this was not a simple information blackout. The 48-hour gap between the start of the riots and their eventual presentation to the country’s mass audiences exemplified some of the Chinese Communist Party’s (CCP) sophisticated techniques for managing information during fast-breaking foreign affairs incidents in the Internet era. Far from seizing on incidents at sea to demonstrate China’s strength to a domestic audience, the official line played down China’s assertive actions in the South China Sea and emphasized Vietnamese efforts to stop the riots, effectively de-coupling the violence from the issue that sparked them. This indicated that, rather than trying to appease popular nationalism, China’s leaders were in fact reluctant to appear aggressive in front of their own people.[1]

By framing the issue in this way, China’s media authorities cultivated a measured “rational patriotism” in support of the country’s territorial claims. In contrast to the 2012 Sino-Japanese confrontation over the Diaoyu Islands, when Beijing appears to have encouraged nationalist outrage to increase its leverage in the dispute,[2] during the recent incident the Party-state was determined to limit popular participation in the issue, thus maximizing its ability to control the escalation of the situation, a cornerstone of the high-level policy of “unifying” the defense of its maritime claims with the maintenance of regional stability (Shijie Zhishi [World Affairs], 2011).

Read the rest of this entry »


China-Vietnam clash in the Paracels: history still rhyming in the Internet era?

Vietnamese diplomats are saying Chinese and Vietnamese ships collided today in the disputed Paracel Islands, where China has stationed the massive oil and gas drilling platform HYSY-981. The incident may be in some ways unprecedented as the first time China has attempted to drill for hydrocarbons in a disputed area of the South China Sea. But it also resonates with the past in some surprising ways, from the PRC’s initiation of the incident, to Vietnam’s response, and even the information environment facing the two sides.

Read the rest of this entry »


First Luo Yuan, now Liu Yuan: from one “public opinion incident” to another

Liu Yuan

Liu Yuan giving his March 14 interview

...not to be confused with Luo Yuan

Luo Yuan

Over the past few weeks i’ve counted five instances of PLA General Liu Yuan publicly warning against military conflict with Japan over the Diaoyu Islands. If this puzzled the SCMP’s seasoned reporters, who described Liu as “hawkish” in a story quoting him saying, “The friendship between people in China and Japan is everlasting,” it was positively shocking for many of the Chinese internet’s e-nationalists. [1]

Actual serving General Liu Yuan is not to be confused with retired academic “Major-General” Luo Yuan (i’ll continue to put his rank in quotes to distinguish them), who was dumped from the CPPCC this month for being “too outspoken”.

That rationale was a bit ironic given he too has been oddly conciliatory on the Diaoyu issue of late. Not only did “Major-General” Luo categorically refute a Japanese media report that he had called for Tokyo to be bombed, he also seemed to deny he had ever suggested establishing a military presence on Diaoyu. And in one of his earliest Weibos, Luo raised a historical episode that seemed to imply that the US could secretly be trying to fool China into giving it a rationale for military intervention over Diaoyu:

In 1990, as Iraq massed military forces on the Kuwait border, the US ambassador told Saddam, “We do not take a position.” On July 31, US Assistant Secretary of State affirmed that “there is no duty compelling us to use our military”. As a result Iraq invaded Kuwait, under the belief that the US would not intervene, whereupon the US gained a great number of rationales for sending troops. From this we can see, the US wields not only high technology, but also strategic deception.

1990年,伊拉克在科威特边境集结军队时,美大使向萨达姆表示,“不持立场”,7月31日美助理国务卿在众院听证会上肯定“没有义务促使我们使用我们的军队”,结果,伊拉克在确信美不会介入的情况下,入侵科威特,于是,美获得了大量出兵的理由。由此可见,海湾战争,美国不仅玩的是高技术,还玩战略误导

Read the rest of this entry »


“Evacuate all Chinese people from Japan”: warning shots in the East China Sea, or just media war?

20130116-035056.jpg

20130116-035121.jpg

[Updated 16 Jan 3.45pm BST]

On Tuesday afternoon the Chinese online media, led by Huanqiu Wang (Global Times Net), started reporting, “Japan official explicitly states for first time that warning shots will be fired at Chinese planes“.

HQW’s reporter Wang Huan 王欢 quoted the Asahi Shimbun website quoting Defense Minister Onodera, when asked about warning shots, replying that “any country would make this response if its airspace was intruded upon”.

Onodera’s comment may well have been coaxed out of him by reporters looking for a juicy headline, as it comes across as a contradiction of Chief Cabinet Secretary Yoshihide Suga’s comment last week as reported by CNS (the other Xinhua) as reported by CNS that there were no plans for firing warning shots.

According to the Chinese internet media headlines that have relayed the story, Suga “denied” 否认 plans to fire warning shots, but now Onodera has “explicitly confirmed” 明确表态 that they will occur.

The news that Japan “will fire warning shots” was still the top splash on HQW’s website more than 12 hours later:

20130116-034645.jpg

Whether Onodera’s statement has been reported accurately or not, the result is that the Diaoyu ball game now rests with the PRC, and the party-state is playing on a big-time court with a packed house looking on.

Read the rest of this entry »


“You cannot not support this”: the passport saga impresses China’s online nationalists

New PRC e-passport and old version

Students of PRC foreign policy constantly come up against the question of whether the actions of the Chinese state are the result of decisions made by the centralised leadership or individual state agencies.

Linda Jakobson and Dean Knox’s 2010 SIPRI report, ‘New Foreign Policy Actors in China‘ provided an excellent overview of the range of players on the Chinese foreign policy scene. Taking a similar approach in relation to the South China Sea issue, the International Crisis Group’s ‘Stirring up the Sea (I)‘ report earlier this year emphasised the incoherence that can result from individual (and sometimes competing) agencies acting according to their own priorities rather than a consistent centralized policy.

In the PRC’s latest diplomatic disaster, images embedded on the visa pages of the PRC’s new passports have managed to simultaneously provoke the official ire of Vietnam, the Philippines, India and Taiwan.

Close-up of nine-dash line depiction in new People’s Republic of China passport

The two South China Sea claimants have protested the inclusion of a map including the nine-dash line representing China’s “territory” in the disputed sea, India disputes the maps’ depiction of Arunachal Pradesh as part of Tibet, and the passports’ pictures of Taiwan landmarks prompted rare expressions of anger from Ma Ying-jeou and the ROC’s Mainland Affairs Council.

This looks to be a classic case of policy uncoordination resulting from a domestically-focused agency taking actions that directly impinge on other countries’ interests. From the FT’s report breaking the story:

China’s ministry of public security oversees the design and issuing of the new Chinese passports, according to an official at the Chinese foreign ministry who declined to comment further.

The next day the Guardian quoted MFA spokeswoman Hua Chunying saying, “The outline map of China on the passport is not directed against any particular country.” Yet neither the Chinese nor the English versions of the official transcript of Hua’s November 23 press conference include the comment, suggesting that the Foreign Ministry remained disinclined to take responsibility for the move.

The SIPRI and ICG reports mentioned above didn’t focus much attention on the Ministry of Public Security as a player in PRC foreign policy, but it has certainly become one, inadvertently or otherwise.

Read the rest of this entry »