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Money, power, corruption in China, the confessions of Desmond Shum: "In their eyes, I am a traitor"

Audio 04:50

"Chinese Roulette - Money, Power, Corruption and Revenge in Today's China", © Éditions Saint-Simon

By: Heike Schmidt Follow

5 mins

A Chinese billionaire who lifts the veil on the corrupt communist elite, fond of private jet trips and sports cars, is rare.

Businessman Desmond Shum dared to do it.

His book

(Saint-Simon editions) plunges the reader into the secrets of the “red aristocracy”.

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Now exiled in London, Desmond Shum left behind his ex-wife and business partner, who suddenly disappeared in 2017. After four years of silence, on the eve of the book's release in the United States, she told him called, begging him: " 

 ".

But Desmond decided otherwise.

Here is his testimony.

RFI: " 

 ".

It is with this quote from Fan Zhongyan, an 11th century Chinese scholar, that you begin your book.

What risks are you taking by publishing this confessional book despite the threats you have received?  

Desmond Shum:

 When you take on a dictatorship, you never know what they can do to you.

The Chinese state is killing human rights lawyers, journalists, businessmen and women, civil servants.

It happens all the time.

It all depends on how you live with this risk.  

Are you considered a traitor for shining the spotlight on corruption within the Communist Party?  

There is no doubt about it.

They say I smear the image of the Communist Party, China and its leaders.

So yes, in their eyes, I am a traitor. 

Personal relationships, in Chinese “guanxi”, which you talk about a lot in your book, are they essential for doing business in China?  

You can't achieve anything without your network.

Even to run a newsstand around the corner, you need a good relationship with the local policeman.

If you want to do bigger business, then you have to have “guanxi”, connections, higher up.

The laws are very vague in China, so you are constantly navigating a gray area.

They can arrest you or not, you never know when they will strike.

Only your network can protect you.

Political power determines everything.  

What pact did you make with the family of former Prime Minister Wen Jiaobo and especially with his extremely wealthy wife Zhang Beili whom you call "aunt Zhang"?  

We had reached a tacit agreement.

In all of our business, the Wen family took 30% of the profits.

This is the rate you have to accept if you are dealing with this kind of high-ranking people.  

You also happened to offer watches for

At the level at which we have done business, a sum of 10,000 euros is not considered a bribe.

It's just a gift, it's normal in China.

If you're dealing with ministers, deputy ministers, general managers, 10,000, that's just a friendly gesture.

If you offer less, they will find you disrespectful.  

And Western companies also pay?  

Sure !

The Siemens, the IBMs of this world… all do the same.

You write that you were like those birds that clean the teeth of the crocodile, what do you mean by that?  

The case of my wife Whitney is a perfect example.

You always dance on the razor's edge.

At any time you can fall into the abyss.

If you are not ready to give gifts and share your wealth with powerful families, there is nothing you can do.

In China, the party is above the state and party members levy an additional tax on everyone.

You are therefore obliged to pay this tax, if you want to do anything in this country.  

Desmond shum and Whitney his ex-wife.

© Personal collection

Do you consider yourself to be corrupt?  

I don't consider myself corrupt.

I'm just playing the game by Chinese rules.  

Has Xi Jinping's anti-corruption campaign changed the game?

What Xi is doing is not new.

Simply, the scale has changed.

Civil servants are above the law.

So, as long as there is no freedom and independent justice, corruption will always be there.

Once you have obtained a ministerial position, you are untouchable.

You will not be punished for acts of corruption or this or that ordinary crime.

If you are punished, it is only for political reasons.

You don't have to be a rebel, just be a potential rival or belong to the wrong political camp.

It depends.  

Does this red aristocracy feel threatened today

The economic interests of the red aristocrats depend entirely on their political power.

Xi Jinping does not want to share power with anyone, not even the red elite.

This of course affects their economic interests.

Xi Jinping also does not like private entrepreneurship.

However, most members of the elite are in business with private companies.

So Xi clashes with their interests.  

So the Chinese number one must have a lot of enemies

Absoutely !

4.5 million civil servants have already been punished, and they all have associates, family, ex-chiefs, ex-colleagues.

It is for this reason that Xi Jinping must remain in power at all costs.

The day he loses it, a terrible wave of revenge will fall on him.

This is why he must renew his mandate.  

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