Chinese Politburo Orders End to Officials’ Privileges

The Communist Party today shut down two state-owned conglomerates, including one linked to the son of senior leader Deng Xiaoping, and ordered an end to many of the special privileges enjoyed by high officials.

Imported luxury cars, special supplies of food, pleasure trips abroad and rounds of banqueting all must come to an end, the party Politburo ordered in its most serious attack yet on endemic corruption that has cost the party much popular support.

If carried out, the Politburo order will affect officials at the uppermost levels of the party and government, who have been exempt from anti-corruption and austerity drives.

The Politburo’s notice was read on television at the end of a two-day closed meeting in Zhongnanhai, the party compound where top leaders maintain homes of relative luxury. Zhongnanhai once was part of the Imperial Palace, and its red walls have become a symbol to ordinary Chinese of the privileges of those in power.

The Politburo order was clearly triggered by the student democracy movement that was crushed in June, which drew hundreds of thousands of supporters with the slogan, “Oppose corruption.”

The students also lampooned children of senior officials who enjoy top posts in government and business, including Deng’s son, whom they nicknamed “Prince Pufang.”

The Politburo ordered two companies directly under the State Council, or cabinet, be shut down, including Kang Hua Development Corp., which is linked to Deng Pufang.

Kang Hua was formed under the auspices of Deng Pufang’s China Welfare Fund for the Handicapped, and it allegedly used the connection to evade taxes while developing into one of China’s largest foreign trade companies.

The party also shut down the China Industry and Commerce Economic Development Corp. and ordered two leading investment companies to merge.

It gave the spouses and children of senior government and party officials until Sept. 1 to resign from jobs in “commercial business and trading companies.”

The Politburo notice also:

--Banned party Politburo, party Secretariat and State Council personnel from driving imported cars and exchanging banquets and gifts paid for with state funds.

--Said ministers and provincial leaders may travel abroad only on business relevant to their posts, and cannot accept invitations from foreign businessmen. Offers of trips abroad have become popular bribes.