Friends Don’t Let Friends Become Chinese Billionaires

Forbes ^ | 7/25/2011 | Ray Kwong

[bruinbirdman]

The High Mortality Rate Of Chinese Billionaires

I’m no statistics whiz, but it seems to me that a Chinese billionaire dies every 40 days.

China Daily reported Friday that unnatural deaths have taken the lives of 72 mainland billionaires over the past eight years. (Do the math.)

Which means that if you’re one of China’s 115 current billionaires, as listed on the 2011 Forbes Billionaires List, you should be more than a little nervous.

Mortality rate notwithstanding, what’s more disturbing is how these mega wealthy souls met their demise. According to China Daily, 15 were murdered, 17 committed suicide, seven died from accidents and 19 died from illness. Oh, yes, and 14 were executed. (Welcome to China.)

I don’t know about you but I find it somewhat improbable that among such a small population there could be so many “suicides,” “accidents” and “death by disease” (the average age of those who died from illness was only 48). I’m only speculating but the homicide toll could really be much higher.

[huldah1776]

What are the inheritance laws in China? Just wondering.

[B.Lyle]

“Is there a tax on inheritance?” would be another pertinent question. My guess for a communist country would be 100%, but they may have modified it in the last couple of decades.

It does suggest that the Chinese boom is temporary, as the most successful people are being picked off.

[JoeProBono]

[FromTheSidelines]

“Is there a tax on inheritance?” would be another pertinent question. My guess for a communist country would be 100%, but they may have modified it in the last couple of decades.

Quick Google search shows no inheritance tax in China.

[Teacher317]

China is not very Communist in its economic practices

[FromTheSidelines]

That’s been my experience, too... It’s really not a communist nation, except in name. It’s a fascist oligarchy, with a small group of people controlling most of the top levels of Government, and Government involving itself in key industries.

If you stop and think about it for a minute, the US isn’t too far away from that as well!

[expat1000]

Lots of ‘untimely’ deaths of ethnic Chinese super rich here in Thailand. Many are attributed to family members (not openly, though) or business rivals - often one and the same.

[VoiceOfBruck]

Wow, that’s almost as dangerous as being an enemy of the Clintons.

[WilliamofCarmichael]

"[China's] factory owners are mostly privileged children of party officials – 90 per cent of China's billionaires are the children of senior cadres – who have a reputation for spending more time in karaoke lounges than boardrooms. They are ill-equipped to act as innovators and entrepreneurs." The Daily Mail 9 February 2008
here

It's true that some individuals build enterprises. Are those individuals given free rein? I don't think so in fact aren't they "invited" to become Party members if they are not already? and if they refuse?

One example of an enterprise built by an individual is Haier. A Chinese Communist Party member took over a government owned enterprise and converted it from a worthless Mao-era "factory" to a billion dollar, worldwide company -- by originally stealing German intellectual property if I am not mistaken.

[WilliamofCarmichael]

RE: China is not very Communist in its economic practices

You can say the same about Lenin's Soviet Union. He too permitted free enterprise. It was called New Economic Plan (NEP). Jeng studied that hard and quizzed American Armand Hammer -- who lived in Russia at that time -- about NEP.

Lenin called the capitalists who poured into Russia to help him get through the early days, useful idiots.

Once the Revolution was secure -- and I believe Lenin was gone and Stalin was in charge -- the free enterprise Nepmen were "rewarded."

I don't think the Chi-Coms call it capitalism I think they prefer "Socialism with Chinese characteristics" and IMO today's useful idiots will one day find what that really means.

IOW with hundreds of millions of citizens in dire need how can Red China continue to let Western useful idiots walk off with profits from China's domestic and export economy? The Chi-Coms have stolen intellectual property, next they'll seize the Westerners' physical property.

It's what communists do.

I am simply offering my opinion. I am not arguing. I have no respect for a government that's killed tens of millions of their own citizens -- all such acts were contemporaneous events for me.

[bruinbirdman]

"next they'll seize the Westerners' physical property"

Although not on the scale as before, Rooskies are still sucking in Western capital only to confiscate assets nefariously. Especially in the natural resource sectors.

yitbos