Chinese billionaire linked to Bo Xilai detained

One of China's richest men, and a close ally of Bo Xilai, the senior Chinese politician who was dramatically purged earlier this month, has been arrested for corruption.

One of China's richest men, and a close ally of Bo Xilai, the senior Chinese politician who was dramatically purged earlier this month, has been arrested for corruption.
Former Chongqing Party Secretary Bo Xilai Credit: Photo: AFP/GETTY

Xu Ming, 41, is thought to have paid for Mr Bo's son, Bo Guagua, to study at Harrow, Oxford and now Harvard, according to a report in the Shin Min Daily News, a Chinese overseas newspaper based in Malaysia.

It was not possible to verify the claim independently and Mr Bo said on March 9 that his son had won full scholarships to study overseas, without giving further details.

Mr Xu was China's eighth richest man in 2005, according to Forbes, and one of its youngest billionaires, with a fortune of approximately £1.3 billion. His company, the Dalian Shide group, is a conglomerate that manufactures building materials, cars, and plastics.

It also sells insurance, makes wide-ranging investments, and owns a football club, Dalian Shide, which has won the Chinese league eight times.

However, the Economy and Nation Weekly, a magazine affliated to Xinhua, the Chinese state news agency, reported that Mr Xu was put under arrest on March 15, for economic crimes.

The magazine reported that investigators from China's Central Commission for Disciplinary Investigation, the country's most senior anti-graft watchdog, had been stationed in Dalian for several days and had also detained a second, as yet unnamed, person.

An investigation team is also thought to be in Chongqing, and other businessmen from both towns have gone to ground.

Other Chinese media has reported that he allegedly had corrupt links to Chinese government officials, but stopped short of naming anyone.

Mr Xu and Mr Bo have been friends since the latter was the mayor of Dalian in the 1990s. Dalian has long been thought of as Mr Bo's power base, since he served in the city for some 16 years before ascending to bigger jobs elsewhere.

Mr Bo was also dismissed from his job as party secretary of Chongqing on March 15, with a one-line statement. Nothing has been heard of him since, but his political career appears to be over.

Meanwhile, as the rumours swirl around the case, one of China's most prominent political commentators has found his blogging accounts suspended.

Zhang Ming, a politics professor at Renmin university, said he could not access his microblogs on Sina, Tencent or Sohu weibo.

Mr Zhang has 250,000 followers on Sina weibo. Both Sina and Tencent were also ordered by the government last week to suspend all comments for three days as a punishment for failing to contain the spread of rumours.