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China

China’s crackdown on flamboyant billionaires

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Author: Martin Miszerak, SolBridge International School of Business

In March 2023, China’s National People’s Congress announced the establishment of a Central Finance Commission, a ‘super-regulator’ tasked with the supervision and overhaul of the entire financial sector. The new body is to be chaired by none other than Chinese President Xi Jinping. The Commission’s first ‘unofficial’ financial restructuring may well have been the mid-February disappearance of billionaire investment banker Bao Fan.

Jack Ma attends the 2017 Global Women Entrepreneurs Conference. Hangzhou city, Zhejiang Province, China, 10 July 2017. (Photo: Reuters)

Bao is the founder and chairman of China Renaissance, the country’s top investment bank. The disappearance of Bao Fan remains a mystery, although a rumour later circulated that he was ‘cooperating’ with an investigation by ‘certain authorities’.

Bao Fan is not the first Chinese billionaire to vanish. He follows in the footsteps of Jack Ma, founder of the e-commerce giant Alibaba and former controlling shareholder of Ant Group. Ant Group was a financial services powerhouse scheduled to go public in Hong Kong in November 2020 in the biggest initial public offering (IPO) ever. Jack Ma disappeared shortly after he delivered a speech in Shanghai which was highly critical of the Chinese banking sector and its regulators.

The IPO was put on hold and Ant Group has been subjected to extensive restructuring. Jack Ma unexpectedly reappeared in mainland China in late March 2023, presumably as a part of the government’s initiative to improve sentiment among the private sector. It is not clear how long the government will allow him to stay on the mainland, but any executive role in Ant Group is over for him.

Bao Fan’s business philosophy sheds some light on the possible circumstances of his disappearance. Bao was an unabashedly global citizen but doing business in an environment of intensifying nationalism and authoritarianism under Xi Jinping. The son of Chinese diplomats, he lived a privileged youth, with the ability to travel internationally and attend high school in the United States. Armed with a Master of Business Administration, he spent several years working for investment banks Credit Suisse and Morgan Stanley. Bao was a titan of China’s technology and finance industries and his fame lay in his unceasing focus on networking and deal-making.

While Bao’s company China Renaissance operates a wealth management division, the company’s core business was investment banking, accounting for 44 per cent of its total revenue in 2021. Given his focus on deal-making, it is hard to imagine Bao Fan spending much time on the study of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, which may have been a fatal error.

Bao operated on the model of a flamboyant ‘master banker’ and ‘rainmaker’, reminiscent of the late US investment banker Bruce Wasserstein, who also bolted out of First Boston (today Credit Suisse) to set up his boutique investment bank and later led the buyout and IPO of Lazard Freres. China Renaissance’s business model eerily resembles that of Lazard Freres, which is generally thought to be home to ‘swashbuckling’ star bankers.

Bao Fan’s flamboyance and aggressive deal-making as ‘king’ of the platform tech industry were incompatible with Xi Jinping’s Marxist vision for the financial sector. Under Xi’s vision, the financial sector should be limited to supporting China’s manufacturing sectors, particularly those prioritised in Made in China 2025. While Xi Jinping is not against the private sector and Premier Li Qiang has repeatedly affirmed China’s commitment to the private sector, their imperative is for the private sector to be under Chinese Communist Party (CCP) control and promote party objectives.

There is no room for someone like Bao Fan within such a private sector model. For Xi, an ideal entrepreneur is someone like Ren Zhengfei, founder and Chief Executive Officer of Huawei. Ren blends unquestionable entrepreneurial talents with a dedication to communism and Mao Zedong, after whom he ‘fashions himself’ and the company. He reads the Selected Works of Mao Zedong in his spare time.

It is difficult to be optimistic about the future of either Bao Fan or China Renaissance. The ‘reappearance’ of Bao Fan as if nothing had happened is highly unlikely. He is much more likely to follow in the footsteps of Jack Ma, either remaining incommunicado under house arrest or being forced into exile.

China Renaissance is likely to follow in the path of Ant Group by ‘inviting’ a major state-owned shareholder and demoting Bao Fan to…

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New Report from Dezan Shira & Associates: China Takes the Lead in Emerging Asia Manufacturing Index 2024

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China has been the world’s largest manufacturer for 14 years, producing one-third of global manufacturing output. In the Emerging Asia Manufacturing Index 2024, China ranks highest among eight emerging countries in the region. Challenges for these countries include global demand disparities affecting industrial output and export orders.


Known as the “World’s Factory”, China has held the title of the world’s largest manufacturer for 14 consecutive years, starting from 2010. Its factories churn out approximately one-third of the global manufacturing output, a testament to its industrial might and capacity.

China’s dominant role as the world’s sole manufacturing power is reaffirmed in Dezan Shira & Associates’ Emerging Asia Manufacturing Index 2024 report (“EAMI 2024”), in which China secures the top spot among eight emerging countries in the Asia-Pacific region. The other seven economies are India, Indonesia, Malaysia, the Philippines, Thailand, Vietnam, and Bangladesh.

The EAMI 2024 aims to assess the potential of these eight economies, navigate the risks, and pinpoint specific factors affecting the manufacturing landscape.

In this article, we delve into the key findings of the EAMI 2024 report and navigate China’s advantages and disadvantages in the manufacturing sector, placing them within the Asia-Pacific comparative context.

Emerging Asia countries face various challenges, especially in the current phase of increased volatility, uncertainty, complexity, and ambiguity (VUCA). One notable challenge is the impact of global demand disparities on the manufacturing sector, affecting industrial output and export orders.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

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Is journalist Vicky Xu preparing to return to China?

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Chinese social media influencers have recently claimed that prominent Chinese-born Australian journalist Vicky Xu had posted a message saying she planned to return to China.

There is no evidence for this. The source did not provide evidence to support the claim, and Xu herself later confirmed to AFCL that she has no such plans.

Currently working as an analyst at the Australian Strategic Policy Institute, or ASPI, Xu has previously written for both the Australian Broadcasting Corporation, or ABC, and The New York Times.

A Chinese language netizen on X initially claimed on March 31 that the changing geopolitical relations between Sydney and Beijing had caused Xu to become an expendable asset and that she had posted a message expressing a strong desire to return to China. An illegible, blurred photo of the supposed message accompanied the post. 

This claim was retweeted by a widely followed influencer on the popular Chinese social media site Weibo one day later, who additionally commented that Xu was a “traitor” who had been abandoned by Australian media. 

Rumors surfaced on X and Weibo at the end of March that Vicky Xu – a Chinese-born Australian journalist who exposed forced labor in Xinjiang – was returning to China after becoming an “outcast” in Australia. (Screenshots / X & Weibo)

Following the publication of an ASPI article in 2021 which exposed forced labor conditions in Xinjiang co-authored by Xu, the journalist was labeled “morally bankrupt” and “anti-China” by the Chinese state owned media outlet Global Times and subjected to an influx of threatening messages and digital abuse, eventually forcing her to temporarily close several of her social media accounts.

AFCL found that neither Xu’s active X nor LinkedIn account has any mention of her supposed return to China, and received the following response from Xu herself about the rumor:

“I can confirm that I don’t have plans to go back to China. I think if I do go back I’ll most definitely be detained or imprisoned – so the only career I’ll be having is probably going to be prison labor or something like that, which wouldn’t be ideal.”

Neither a keyword search nor reverse image search on the photo attached to the original X post turned up any text from Xu supporting the netizens’ claims.

Translated by Shen Ke. Edited by Shen Ke and Malcolm Foster.

Asia Fact Check Lab (AFCL) was established to counter disinformation in today’s complex media environment. We publish fact-checks, media-watches and in-depth reports that aim to sharpen and deepen our readers’ understanding of current affairs and public issues. If you like our content, you can also follow us on Facebook, Instagram and X.

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Guide for Foreign Residents: Obtaining a Certificate of No Criminal Record in China

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Foreign residents in China can request a criminal record check from their local security bureau. This certificate may be required for visa applications or job opportunities. Requirements and procedures vary by city. In Shanghai, foreigners must have lived there for 180 days with a valid visa to obtain the certificate.


Foreign residents living in China can request a criminal record check from the local security bureau in the city in which they have lived for at least 180 days. Certificates of no criminal record may be required for people leaving China, or those who are starting a new position in China and applying for a new visa or residence permit. Taking Shanghai as an example, we outline the requirements for obtaining a China criminal record check.

Securing a Certificate of No Criminal Record, often referred to as a criminal record or criminal background check, is a crucial step for various employment opportunities, as well as visa applications and residency permits in China. Nevertheless, navigating the process can be a daunting task due to bureaucratic procedures and language barriers.

In this article, we use Shanghai as an example to explore the essential information and steps required to successfully obtain a no-criminal record check. Requirements and procedures may differ in other cities and counties in China.

Note that foreigners who are not currently living in China and need a criminal record check to apply for a Chinese visa must obtain the certificate from their country of residence or nationality, and have it notarized by a Chinese embassy or consulate in that country.

Foreigners who have a valid residence permit and have lived in Shanghai for at least 180 days can request a criminal record check in the city. This means that the applicant will also need to currently have a work, study, or other form of visa or stay permit that allows them to live in China long-term.

If a foreigner has lived in another part of China and is planning to or has recently moved to Shanghai, they will need to request a criminal record check in the place where they previously spent at least 180 days.

There are two steps to obtaining a criminal record certificate in Shanghai: requesting the criminal record check from the Public Security Bureau (PSB) and getting the resulting Certificate of No Criminal Record notarized by an authorized notary agency.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

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