We have written often about China and the cronyism which seeps into every corner, every nook and cranny, of the Chinese economy. It is The Ultimate Crony Capitalist State.
In this excellent report from Bloomberg News, the “princelings” of China, the sons (mostly sons) of leading revolutionaries during the Mao days are examined. They have amassed immense wealth over the past 30 years. Theirs is a guilded aristocratic life which was largely attained via the manipulation of the state and its sponsored corporations and projects—”public/private partnerships” to the extreme. Crony capitalism.
In the 1980s, they were chosen to run the new state conglomerates. In the 1990s, they tapped into real estate and the nation’s growing hunger for coal and steel. Today the Immortals’ grandchildren are players in private equity amid China’s integration into the global economy.
Twenty-six of the heirs ran or held top positions in state- owned companies that dominate the economy, data compiled by Bloomberg News show. Three children alone — General Wang’s son, Wang Jun; Deng’s son-in-law, He Ping; and Chen Yuan, the son of Mao’s economic tsar — headed or still run state-owned companies with combined assets of about $1.6 trillion in 2011. That is equivalent to more than a fifth of China’s annual economic output.