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.
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:
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.
China’s Information Management in the Sino-Vietnamese Confrontation: Caution and Sophistication in the Internet EraPosted: June 9, 2014
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.
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, 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).
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.
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. 
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.
[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:
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.
“The headline speaks to the Chinese people’s heart!”: Zhong Sheng on Diaoyu patrols, gets a Phoenix twistPosted: October 10, 2012
Monday’s “Zhong Sheng” article in the Renmin Ribao set out to tell the world that the People’s Republic’s fisheries and surveillance ships are going to continue their patrols around the Diaoyu Islands.
The basic point was simple (official English translation):
Not only will the ship fleet of the Chinese Fishery Administration continue to stand its ground, but the Chinese Marine Surveillance ships will also stand their ground.
Beginning October 1, Chinese government boats have entered the 12nm territorial zone twice (on October 2 and 3) and patrolled in the 12nm “contiguous zone” every day since then. Zhong Sheng offered an explanation of sorts for the timing:
China needs to stand its ground in this manner. Otherwise, China’s territorial sovereignty and legitimate right and interest could never be truly maintained, and Chinese people wouldn’t be able to celebrate the festive season securely and happily.
So the patrols recorded each day from October 1 to 7 were probably aimed in part at giving China’s holidaying families a sense that their government taking the requisite action to protect the homeland during National Day Golden Week. The Japanese media were of course crucial to the effectiveness of this.(†)
“Zhong Sheng” repeatedly claimed that the patrols were regularized and would not go away, but in so doing, effectively admitted that China had changed the status quo on the waters out there: “Japan is not accustomed to this . . . Japan must learn to adapt to these regular actions of China.” In fact, the writer(s) even went one step further in this direction, nominating the specific date for one significant change in PRC policy:
The Chinese Fishery Administration has normalized the fishery-protection patrol in the waters near the Diaoyu Islands and its subsidiary islands since as early as 2010.
A cautionary tale from the Beijing Youth Daily: misfortune of one driver in the Xi’an anti-Japanese protestsPosted: September 23, 2012
First came the exhortations to “rational patriotism“, accompanied by satisfying news of China’s government’s “strong countermeasures” — how many law–enforcement ships, how many Chinese fishermen heading to Diaoyu, how surprised Noda was at the strength of China’s response, and even a belated appearance by the PLA Navy in the area.
On Monday afternoon the armada of Chinese fishing boats was a lead photo on the PRC’s top five news portals, while arrests for protest misbehaviour were dominant headlines. E.g.:
There were many more such cautionary tales in the wake of last weekend’s violent riots across China (photos, photos & more photos): police getting on Weibo to seek the perpetrators of patriotic smashings, and subsequent well-publicised arrests in Guangzhou and Qingdao and likely elsewhere. (English-language story from today, September 22, is here.)
Yesterday the Beijing Youth Daily published a detailed, vivid and gory account of how Li Jianli, a Xi’an family man, was left with brain damage just for driving a Toyota Corolla in Xi’an. As the article describes, Li’s wife got out and tried to convince the protesters not to smash the car with a few “good sentences”, including a pledge to never again buy a Japanese car, but this was all to no avail as someone smashed his skull with a D-lock.
Perhaps to avoid demonizing the protesters, or maybe to provide a positive exemplar (after all, what politicised human interest story would be complete without one of those?), the piece concentrates on the intersection of Li Jianli’s tragic tale with that of a protest-planner-turned-saviour, 31-year-old tool peddler Han Pangguang. When Han heard about Japan’s plan to nationalise the Diaoyus he collected several hundred signatures from other sellers in the marketplace and applied to hold a protest. But as soon as he heard that the protests had turned violent, according to the article, he suddenly turned his attention to saving those threatened by the violence.
The injection of Han Chongguang into the story, of course, serves to support the official line that it was not protesters, or anti-Japanese sentiment, that was the problem, but rather, illegal elements who hijacked the protests.
Nonetheless, the piece provides a fascinating first-hand accounts of the chaos of September 15 in Xi’an.
Beijing Youth Daily, September 20, 2012
By Li Ran
Fifty-one-year-old Xi’an resident Li Jianli was the breadwinner for his family, but now he lies rigid in a hospital neurosurgery ward.
Li Jianli’s left arm and leg have begun to regain partial movement, but the whole of the right side of his body remains limp. He can slowly bend his right leg, but his right arm and hand just flatly refuse to obey orders. His speech faculties have been badly damaged; he can only say simple 1-2 syllable phrases like “thanks” and “hungry”.
Xi’an Central Hospital has made a diagnosis: open craniocerebral injury (heavy).
Luckily, over the past three days in intensive care he has basically returned to consciousness. As soon as he thinks of what happened to him on September 15, his eyes turn red and silent tears begin to flow. His left hand struggles up to wipe them away.
At 3.30pm that day he was smashed on the head with a U-shaped lock, which penetrated the left side of the top of his head, shattering his skull. He fell down, unconscious, and thick blood and cranial matter spilled out onto the ground. Soon, bloody foam was coming out of his mouth.