Chinese Whispers: tycoon Desmond Shum on corruption, power and his wife’s disappearance
Oct 14, 2024
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Desmond Shum, an author and commentator on Chinese politics, shares his gripping story after his wife, Whitney Duan, vanished in 2017 amid a power struggle involving Xi Jinping. He reflects on their lavish life in the early 2000s, intertwined with China's elite, revealing the shocking reality of corruption and political intrigue. Shum discusses the erosion of China’s economic trajectory under Xi's rule and the skepticism surrounding the country's GDP figures. This candid conversation highlights the interplay between personal tragedy and the political landscape of a repressive regime.
Desmond Shum reflects on the intense media scrutiny and personal fallout following the New York Times exposé on his former wealth and ties to political elites.
He critiques Xi Jinping's concentration of power as detrimental to China's economic growth, fearing that ideological gains overshadow private enterprise benefits.
Deep dives
Personal Ties to Chinese Politics
Desmond Shum provides a unique perspective on Chinese politics, having been intricately linked to influential political figures through his former wife, Whitney Duan. They conducted extensive business with Wen Jiabao's family, which allowed them intimate access to the workings of the Chinese political elite. Shum describes the term 'white glove' to characterize their close partnership, highlighting the blurred lines between political influence and business. Their status as prominent figures in China's economy came crashing down due to a New York Times exposé that revealed large sums of wealth tied to the Wen family, marking a significant disruption in their lives.
The Consequences of the New York Times Exposé
The New York Times article not only unveiled the hidden wealth of Wen Jiabao's family but also threw Desmond and Whitney Duan into a tumultuous period marked by intense media scrutiny. Despite their attempts to mitigate the fallout, Whitney took the fall and was urged to address the media, ultimately leading to personal and professional ruin. The repercussions of the exposé were far-reaching, leaving Whitney detained by the Chinese government for years while creating a lasting impact on Desmond’s life. He reflects on how the exposé transformed him from a businessman to an outspoken commentator on Chinese political dynamics and corruption.
Whitney's Disappearance and Its Implications
Whitney Duan's disappearance in 2017, alongside three of her colleagues, highlights the unpredictable nature of political factionalism within the Chinese Communist Party. Shum theorizes that her detention was tied to ongoing power struggles, mainly because of their association with the Wen Jiabao family, who had departed from Xi Jinping's inner circle. This incident raises questions about political retaliation from Xi’s administration and the lengths to which competing factions may go to exert control. Whitney's eventual release before the publication of Shum's memoir illustrates the delicate balance of power within China's political landscape and the consequences of dissent.
The Current Economic Climate and Political Landscape
Shum discusses the significant changes in China's economic trajectory under Xi Jinping, criticizing the concentration of power and the shift back toward state control, which he believes undermines private enterprise. He argues that Xi's assertion of control, coupled with his ideological beliefs, sacrifices immediate economic growth for long-term ideological gains, which could ultimately harm the Chinese economy. The conversation reflects a growing concern among business elites regarding the diminishing confidence in the market due to increased government intervention. This shift is seen as detrimental, potentially stalling China's previously robust growth and altering the country’s economic model significantly.
** On October 19, Cindy Yu and a panel of special guests will be recording a live Chinese Whispers at London's Battle of Ideas festival, talking the latest on China’s economic slowdown and asking – what are the social and political implications? Is China in decline?
Chinese Whispers listeners can get a 20 per cent discount on the ticket price with the code WHISPERS24. Click here to find out more and get your ticket. **
In the early 2000s, Desmond Shum and his wife, Whitney Duan, were among the richest people in China, with fingers in various real estate, infrastructure and hospitality projects. They also had some of China’s most powerful people on speed dial – including the family of then-premier Wen Jiabao. But that all changed in 2017 when Whitney was disappeared by the Chinese state. Desmond now lives in the UK where he published a memoir in 2021, Red Roulette, and is now an analyst and commentator on Chinese politics.
On this interview, Cindy Yu and Desmond Shum discuss why he thinks Whitney was the victim of a power struggle involving Xi Jinping, the reality of politics and corruption in the China of the 2000s, and how Xi has destroyed the economic trajectory of the once-booming People’s Republic.
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