China’s mega-wealthy are a secretive bunch, so it came as a surprise when one of the country’s richest men fell under the spotlight during the trial of the Rio Four.
Steel magnate Du Shuanghua (杜雙華), head of Rizhao Steel, was named during the proceedings at a Shanghai court where Rio Tinto employees faced hours of questioning.
Du, China’s second-wealthiest man in 2008 according to the Hurun Institute’s rich list, allegedly gave US$9 million to Wang Yong (王勇), one of the Rio executives, the court was told. Wang’s lawyer denied wrongdoing and said the money was a loan to buy shares in companies listed on the Hong Kong Stock Exchange.
The naming of Du by one of the accused executives added an extra dimension to a trial that is politically and economically sensitive.
Zhang Peihong (張培鴻), Wang’s lawyer, said his client’s case turned on allegations he accepted a US$9 million bribe from Du, who owns a big stake in Rizhao, one of the country’s largest steel makers, or whether the money was paid for other purposes as he said.
Steel companies have pushed in recent years to secure supply contracts with big miners, such as Rio, as the contract price has often been lower than the global spot price for iron ore.
The Financial Times said Du has also been involved in a battle to retain control of Rizhao, after coming under pressure to sell a majority stake in his company to a state-owned rival.
In an interview in a Chinese magazine, Du said his objectives were not limited to having the largest steel enterprise in Shandong Province. He wants to expand into port construction and develop metals technology.
Former premier Deng Xiaoping (鄧小平) might have said that getting rich was glorious three decades ago, but China’s millionaires have every reason to shun publicity. When a Forbes magazine survey of China’s richest appeared in 1999, observers called it the “death list” after a tax crackdown targeted many of those mentioned, with scores jailed and several executed.
Du grew up in Hebei Province. His father headed a department at a steel plant and he worked there, leaving at 22 to set up his own factory making steel tubes.
“He could not afford to hire a crane ... He moved bricks himself and ate steamed bread with workers on the ground,” Du Qinghe, the Chinese Communist Party secretary of his hometown, told a Chinese newspaper.
Business boomed and more plants followed — until a steel shortage in 2001. Du spotted his chance and moved into the industry, catapulting him into the big league. It reportedly took him less than six months to build his first mill and start production.
SEEKING CHANGE: A hospital worker said she did not vote in previous elections, but ‘now I can see that maybe my vote can change the system and the country’ Voting closed yesterday across the Solomon Islands in the south Pacific nation’s first general election since the government switched diplomatic allegiance from Taiwan to Beijing and struck a secret security pact that has raised fears of the Chinese navy gaining a foothold in the region. The Solomon Islands’ closer relationship with China and a troubled domestic economy weighed on voters’ minds as they cast their ballots. As many as 420,000 registered voters had their say across 50 national seats. For the first time, the national vote also coincided with elections for eight of the 10 local governments. Esther Maeluma cast her vote in the
Nearly half of China’s major cities are suffering “moderate to severe” levels of subsidence, putting millions of people at risk of flooding, especially as sea levels rise, according to a study of nationwide satellite data released yesterday. The authors of the paper, published by the journal Science, found that 45 percent of China’s urban land was sinking faster than 3mm per year, with 16 percent at more than 10mm per year, driven not only by declining water tables, but also the sheer weight of the built environment. With China’s urban population already in excess of 900 million people, “even a small portion
UNSETTLING IMAGES: The scene took place in front of TV crews covering the Trump trial, with a CNN anchor calling it an ‘emotional and unbelievably disturbing moment’ A man who doused himself in an accelerant and set himself on fire outside the courthouse where former US president Donald Trump is on trial has died, police said yesterday. The New York City Police Department (NYPD) said the man was declared dead by staff at an area hospital. The man was in Collect Pond Park at about 1:30pm on Friday when he took out pamphlets espousing conspiracy theories, tossed them around, then doused himself in an accelerant and set himself on fire, officials and witnesses said. A large number of police officers were nearby when it happened. Some officers and bystanders rushed
HYPOCRISY? The Chinese Ministry of Foreign Affairs yesterday asked whether Biden was talking about China or the US when he used the word ‘xenophobic’ US President Joe Biden on Wednesday called for a hike in steel tariffs on China, accusing Beijing of cheating as he spoke at a campaign event in Pennsylvania. Biden accused China of xenophobia, too, in a speech to union members in Pittsburgh. “They’re not competing, they’re cheating. They’re cheating and we’ve seen the damage here in America,” Biden said. Chinese steel companies “don’t need to worry about making a profit because the Chinese government is subsidizing them so heavily,” he said. Biden said he had called for the US Trade Representative to triple the tariff rates for Chinese steel and aluminum if Beijing was