China's Internet giants, Tencent to undercut Alibaba with billion chat app users

•  Video: Tencent Aims to Undercut Alibaba With 1B Users 

 
Tencent Holdings Ltd. (700) faces the prospect of losing its position as Asia’s most-valuable Internet company this year after Alibaba Group Holding Ltd. (BABA) goes public. The Shenzhen-based company isn’t going to concede quietly.

Tencent is taking on Alibaba in almost every business related to the Web, from games to security to search. In the latest escalation of the battle, Tencent is expanding in messaging services and using the technology to drive customers to its e-commerce partners -- in a direct challenge to its rival.

The fight exposes a rare vulnerability for Alibaba, which is planning an initial public offering that may be the largest in U.S. history.

Tencent has an enormous lead in messaging, with about a billion users for its QQ and WeChat products, compared with Alibaba’s last target of 100 million for its offerings.

Tencent is projected to report a 52 percent surge in profit when it announces second-quarter results today, bolstered by messaging.

“Tencent is using Mobile QQ and WeChat to take traffic away from Alibaba and direct people to e-commerce platforms backed by itself,” said Bill Fan, a Hong Kong-based analyst at China Securities Co. “Instant messaging hasn’t been Alibaba’s strong point, but it sees the viral effect that Tencent’s app is having so it’s trying to develop similar services.”


Photographer: Brent Lewin/Bloomberg Alibaba Group Holding Ltd., 24 percent owned by Yahoo! Inc., is competing with Tencent... Read More
Tencent’s two technologies let people trade messages over mobile phones and tablets, akin to the WhatsApp service that Facebook Inc. (FB) agreed to acquire this year for $19 billion.

QQ, which began as an instant-messaging service on desktop computers and was repurposed for use on mobile devices, has about 848 million monthly active users. WeChat, known as Weixin in China, has 396 million. (WhatsApp has more than half a billion active users.)

Most Valuable

The success of the messaging services has helped boost Tencent’s market value to about $161 billion, making it the most valuable Internet company in Asia.

Alibaba will compete for that title after it goes public. The latest estimate is that after the IPO the company could be valued at $187 billion, according to a survey of 11 analysts by Bloomberg. Tencent shares declined 0.2 percent as of 9:52 a.m. in Hong Kong trading, while the benchmark Hang Seng Index was unchanged.

Alibaba is trying to close the gap in messaging. In September, it started offering a service called Laiwang. Still, Tencent has continued to expand the features available through its apps to maintain its lead


Photographer: Brent Lewin/Bloomberg
QQ and WeChat helped triple Tencent’s mobile-game revenue to 1.8 billion yuan in the... Read More
“In the latest version of QQ, we have upgraded it to a platform for food, drinking and entertainment, and the number of cities we cover is also expanding,” said Dowson Tong, president of the company’s social network group that oversees QQ, in a recent interview.

Revenue Boost

Tencent has integrated games more tightly into its messaging services to capitalize on the China online gaming market, which IResearch projects will expand to 225 billion yuan by 2017.

QQ and WeChat helped triple Tencent’s mobile-game revenue to 1.8 billion yuan in the first quarter from the previous three months.

That trend likely continued in the second quarter. Tencent’s profit rose to 5.59 billion yuan in the three months ended June, according to the average of 11 analysts’ estimates compiled by Bloomberg.

That would make the second successive quarter with profit growth of more than 50 percent. Earnings climbed 61 percent in the three months ended March 2011.

QQ was the first iconic product billionaire Ma Huateng created at Tencent in 1999, two years after AOL Inc. (AOL)’s messaging service took off.

As more Chinese accessed the Internet, instant messaging became the most popular online app. Ma restructured QQ’s divisions in 2012 to take it mobile and the effort paid off.


Photographer: Brent Lewin/Bloomberg
QQ was the first iconic product billionaire Ma Huateng created at Tencent in 1999, two... Read More
Last year, 83 percent of China’s Internet users subscribed to Mobile QQ and 80 percent to WeChat, compared with Laiwang’s 23 percent, according to a survey among almost 4,000 people by Shanghai-based IResearch in June.

Stake Purchases

Tencent is now leveraging its vast user base to go after a bigger share of the China e-commerce market, which IResearch estimates will more than double from last year to 21.6 trillion yuan ($3.5 trillion) in 2017.

The company in March took a 15 percent stake in JD.com Inc., a direct competitor to Alibaba, and folded its own e-commerce assets into the venture. This year, Tencent has also agreed to buy 19.9 percent of Craigslist-like 58.com Inc. and take a 20 percent stake in Dianping.com, a website similar to Yelp Inc. that users review restaurants in China.

Single Click

Tencent has been working closely with JD.com and Dianping, directing traffic from Mobile QQ and WeChat to the websites, said Tong.

Those steps are beginning to yield results. A new single-click link to JD.com from Weixin produced an eightfold increase in daily transaction volumes compared with an earlier access that took two clicks, JD.com said in June. This month a similar integration with JD.com was provided to users of Mobile QQ.

Still, Tencent and its partners are far behind in e-commerce. Alibaba, which operates platforms including Taobao Marketplace and Tmall.com that connect retail brands with consumers, accounted for 76.4 percent of total mobile retail transactions in China, according to its IPO filing to the U.S. Securities and Exchange Commission.

The fact that Tencent wrapped its e-commerce assets into JD.com shows it wants to limit its investment in the segment, said Yao Yue, a Shenzhen-based analyst with Morningstar Inc.

“Even if Tencent’s instant messaging apps can direct a lot of traffic to JD.com, at the end of the day it still depends on who has the better shopping service, and Alibaba’s Taobao is dominant,” said Yao.

Alibaba hasn’t been able to achieve the same success in mobile messaging so far. The company in 2004 started Aliwangwang, a PC-based instant messenger for buyers and sellers, that is now used for negotiating prices, customer services and delivery notifications on its Taobao marketplace. It also has a mobile version called Wangxin.

Lagging Behind

Laiwang was started by Alibaba to broaden its reach, after billionaire founder Jack Ma alluded to Tencent being ahead in the messaging race at a Credit Suisse conference in March 2013.

“We also invested heavily, but we are not that lucky and not creative, so creative like Tencent, which has WeChat, such a powerful thing,” Ma said at the conference.

Ma has vigorously tried to promote Laiwang and said the company wouldn’t pay bonuses to staff who didn’t get 100 clients for the app before Nov. 30 last year, according to a post on the company’s microblog.

In an attempt to generate revenue from Laiwang, Alibaba said in January it would offer games on the app. A month later Alibaba’s Ma said the company’s achievement on mobile applications wasn’t satisfactory.

Alibaba spokeswoman Florence Shih declined to comment on the company’s mobile strategies, citing pre-IPO restrictions.

Jin Yuan, a Shenzhen mobile phone user, underscores the lead that Tencent has in messaging. Jin has been a QQ subscriber for the past 13 years and says Tencent does a better job of making messaging apps that are easy to use.

“I use QQ to keep in touch with friends I’ve known since the PC age and I use it for a lot of group chats,” Jin said. “I like to use WeChat a lot for sharing information about good places for food.”

By Lulu Yilun Chen Bloomberg

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  Showtime for Alibaba world-wide /div>

China fights corruption, Bo Xilai sentenced to life in prison

Bo Xilai (sitting on the defendant's seat), former secretary of the Chongqing Municipal Committee of the Communist Party of China (CPC) and a former member of the CPC Central Committee Political Bureau, is sentenced to life imprisonment for bribery, embezzlement and abuse of power at the Jinan Intermediate People's Court in Jinan City, capital of east China's Shandong Province, Sept. 22, 2013. He was deprived of political rights for life. The court announced the verdict. (Xinhua/Xie Huanchi) 

Bo Xilai (C), former secretary of the Chongqing Municipal Committee of the Communist Party of China (CPC) and a former member of the CPC Central Committee Political Bureau, is sentenced to life imprisonment for bribery, embezzlement and abuse of power, at the Jinan Intermediate People's Court in Jinan City, capital of east China's Shandong Province, Sept. 22, 2013. He was deprived of political rights for life. The court announced the verdict. (Xinhua/Xie Huanchi) 

Bo Xilai, former secretary of the Chongqing Municipal Committee of the Communist Party of China (CPC) and a former member of the CPC Central Committee Political Bureau, was sentenced to life imprisonment on Sunday for bribery, embezzlement and abuse of power.

He was deprived of political rights for life, and his personal assets were also confiscated.

The Jinan Intermediate People's Court in east China's Shandong Province announced the verdict.

Bo was found guilty of taking bribes totaling 20.44 million yuan (about $3.3 million), either personally or through his family members, between 1999 and 2012.

Bo's position had been rising during this period, from the mayor of the Dalian in northeast Liaoning province, to the CPC secretary of the city, to the governor of Liaoning and Commerce Minister.

In return, Bo helped Dalian International Development Co. Ltd., of which Tang Xiaolin was general manager, in taking over the Dalian City liaison office in Shenzhen and also helped Tang obtain quota licenses for importing cars, the court said.

According to court findings, Bo granted Xu Ming, chairman of Dalian Shide Group Co. Ltd., favors in the company's introduction of a football-like sightseeing hot-air balloon and in its bid for a petrochemical project.

The court found that Bo directly accepted cash totaling 1.1 million yuan from Tang. He was aware of and showed no objection to the fact that his wife Bogu Kailai and their son, Bo Guagua, accepted monetary gains and properties worth 19.33 million yuan from Xu.

According to the verdict, Bo Xilai, while Party chief Dalian in 2000, assigned Wang Zhenggang, then urban planning chief of the city, to take charge of a project to be built by Dalian for an unidentified higher authority.

In March 2002, after the project was completed, the higher authority allocated 5 million yuan to refund the project. Wang proposed that Bo, who had moved to become the governor of Liaoning, use money to cover the expenses of his family. Bo consented and asked Wang to approach his wife Bogu Kailai for the matter.

The 5 million yuan was eventually transferred to an account designated by Bogu.

The court's judgement said on Nov. 13, 2011, Bogu and Zhang Xiaojun murdered British citizen Neil Heywood by poisoning him at the Lucky Holiday Hotel in Chongqing. Heywood's body was found on Nov. 15.

Guo Weiguo, then deputy police chief of Chongqing, was in charge of the Heywood case, but he failed to pursue the case to protect Bogu, the court said.

On Jan. 28, 2012, Wang Lijun, then Chongqing's police chief and vice mayor, told Bo Xilai, then Chongqing's Party chief and member of the CPC Central Committee Political Bureau that Bogu was the suspect.

Bo later lashed out at Wang for framing a murder accusation against Bogu, slapping Wang's face and smashing a cup.

At the request of Bogu, Bo asked Wu Wenkang, then deputy secretary general of Chongqing's Party committee, to launch an investigation against Wang Zhi and Wang Pengfei.

The two had been involved in the investigation of the Heywood case but had then handed over a resignation letter in order to expose the murder case.

Bo asked Chongqing's Public Security Bureau to interrogate Wang Pengfei. Bo proposed and approved the withdrawal of the nomination of Wang Pengfei as a candidate for deputy head of Yubei District of Chongqing.

In his bid to prevent a review of the Heywood case, Bo also violated the organizational procedures and convened a Standing Committee meeting of the CPC Chongqing Municipal Committee to remove Wang Lijun from his position as Chongqing's police chief.

After Wang Lijun's defection to the US Consulate General in Chengdu, capital of Sichuan province on Feb. 6, Bo allowed his wife to take part in official meetings to deal with the impact, and sanctioned her suggestion of asking a hospital to fake a diagnosis that Wang suffered from mental illness. Bo also approved the release of the false information that Wang was receiving a "vacation-style treatment."

The verdict said Bo's these actions were important reasons behind Wang's defection and why the Heywood case was not handled in a timely and legal manner.

All these had created an extremely adverse social impact and greatly hurt the interests of the country and its people, the court said.

The court found Bo guilty of bribe-taking, in that as a public servant, he used his power to seek benefits for others and illegally took money and properties from others.

Also as a public servant, Bo took advantage of his position and embezzled public funds with other accomplices, the facts of which constituted the crime of embezzlement.

The court said Bo's abuse of power is extremely serious and has led to huge losses to the state and the people.

The court held that there are sufficient and authentic evidences to support prosecutors' charges against Bo: accepting bribes worth 20.44 million yuan (about $3.3 million), embezzling public funds of 5 million yuan and abusing his power.

Though Bo himself and his lawyer had denied all three charges, the court said these charges are supported by testimonies by several witnesses including Tang Xiaolin, Xu Ming, Bogu Kailai, Wang Zhenggang, Wang Lijun and others, as well as other evidence such as photographs of physical evidence, documentary evidence and electronic data.

In addition, Bo himself has also confessed to part of the facts, and his confession corroborated with those facts.

The court did, however, exclude 1.34 million yuan from the bribery accepted by Bo, saying that there are not enough evidence to support the charge that Xu Ming paid the amount in air tickets for Bogu Kailai and Bo Guagua and that Bo was aware of this.

The illicit money and goods that Bo accepted as bribes or embezzled have been recovered or compensated, the court said.

The Jinan Intermediate People's Court said its verdict was based on the facts, the nature and the circumstances of Bo's crimes and their harm to the society.  

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 China's Bo Xilai on trial
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Weibo brings public confidence in Bo Xilai's trial openness; Bo contradicts wife made up evidence

 

A mobile phone held by the photographer shows a photo from a court's microblog page of disgraced Chinese politician Bo Xilai standing trial (Reuters)

The widely watched trial of former senior official Bo Xilai was broadcast live on Weibo over the past two days, a surprise for many people at both home and abroad.

Pictures and video clips were shown. Transcripts from both the defense and prosecution were also released, including parts where Bo denied evidence presented by prosecutors.

This degree of transparency has not happened before. This will create a precedent that will bring lasting impact to the future trials of sensitive cases.

 This Weibo live feed has served as an important guarantee of a fair trial for Bo in accordance with the law. The live show has addressed various doubts and rumors in and outside China. It demonstrated that the authorities are ready to receive more public scrutiny.

This is not a political trial, nor a moral one. This will only be a trial by law. Even if someone might have personal goals, before the public eye, there is no way to achieve anything in this trial, anything that is not tolerated by the law.

Besides assuring a fair trial for Bo's case, the Weibo live feed has also convinced more people about China's sincere desire to improve the rule of law.

For a while, the Chinese public has been complaining about injustice in constant news reports of scandals or social issues.

The open and transparent trial of Bo provided a different picture to the public, which will significantly change the image of the judicial system.

The most important thing now is to have a fair trial for Bo's case, which will naturally boost the public's confidence.

We have seen a very good opening of this trial, with widespread applause and support from various walks of life.

Of course, the Weibo live feed is not without risks. Breaking news about Bo's scandal had already become a sensation. People have been expressing all kinds of opinions online, no matter how much they know of China's legal system. Foreign media have also shown great interest in covering this.

No matter what ruling the court eventually gives, there must be some different opinions from the public. The Weibo live feed provided great details of the trial, which will only add fuel to the public discussion about this case.

The development of the rule of law needs both the judicial authorities' hard work in each case and public support.

Major cases will not only avoid "political judgment," but also "public opinion judgment."

A fair trial needs to follow strict legal procedures, while under public scrutiny.

But in the end, it is the court that is responsible for giving a ruling according to the law.

Contributed by By Global Times

Bo Contradicts Wife as Chinese Media Stress Trial’s Transparency

Ousted Politburo member Bo Xilai suggested his wife made up evidence to avoid a death sentence and denied covering up a British man’s murder at a trial that state media said was proof no one’s above the law in China.

“I feel there are big discrepancies in the charges I have been accused of,” Bo said yesterday of the claim that he tried to hide his wife Gu Kailai’s involvement in Neil Heywood’s murder, according to a transcript released by the court. Gu was given a suspended death sentence last year for killing Heywood, and Bo is accused of bribery, embezzlement and abuse of power.

People watch a recorded testimony by Gu Kailai, wife of former Chinese Politburo member Bo Xilai, broadcast at a hotel near the Jinan Intermediate People's Court in Jinan on Aug. 23, 2013. Photographer: Mark Ralston/AFP/Getty Images

Aug. 22 (Bloomberg) -- Fraser Howie, a director at Newedge Singapore and co-author of "Red Capitalism: The Fragile Financial Foundation of China’s Extraordinary Rise," talks about former Politburo member Bo Xilai's trial. Bo went on trial today for bribery and embezzlement with China’s judiciary as much in the spotlight as the man at the center of the country’s most politically charged case in 30 years. Howie speaks from Singapore with Angie Lau on Bloomberg Television's "Asia Edge." (Source: Bloomberg)

Aug. 23 (Bloomberg) –- Bloomberg’s Stephen Engle reports on the start of day two of the Bo Xilai trial on Bloomberg Television’s “First Up.” (Source: Bloomberg) 

Aug. 23 (Bloomberg) –- Chinese University Of Hong Kong Adjunct Professor Willy Lam discusses the Bo Xilai trial with Rishaad Salamat on Bloomberg Television’s “On The Move Asia.” (Source: Bloomberg)

Bo, 64, mounted a defense that did an effective job of exposing gaps in the case against him, even though the Communist Party remains in control and a guilty verdict is almost certain, according toNicholas Bequelin, a Hong Kong-based researcher for Human Rights Watch. The case has broken with past political trials because the court is releasing live updates and detailed transcripts of the proceedings.

“It’s clear that the party is trying to give maximum legitimacy to the judiciary proceedings that will put an end to the Bo Xilai affair,’ Bequelin said. ‘‘But I think that the effect has been somewhat unexpected for the authorities. Bo is coming out looking pretty good.”

Party Secretary

Bo, a former commerce minister and party secretary of Chongqing municipality, was once considered a rising star in the Communist Party. His downfall in March of last year upended a once-a-decade leadership transition and shone a spotlight on corruption at the party’s highest levels.

Along with bribery and embezzlement charges that had been the focus since the trial began Aug. 22, Bo is charged with abuse of power for allegedly trying to cover up Gu’s role in Heywood’s 2011 murder. The court came to that charge yesterday, and the trial continues today.

Bo was removed as Chongqing party secretary and ousted from the Politburo last year after his former police chief in the city, Wang Lijun, fled to a U.S. consulate with evidence about his wife’s alleged involvement in Heywood’s death. Wang testified yesterday that Bo slapped him in the face when confronted with the possibility that Gu was responsible for the murder.

“My body twitched, and when he was done hitting me, he went back to sit at the table,” Wang testified yesterday. “I noticed my mouth was bleeding, and something was flowing out of my ear.”

Wang was convicted of “bending the law for selfish ends” and sentenced to 15 years in prison last year.

Central Part

Testimony by Gu has been a central part of the prosecution’s case, and included claims yesterday that Bo knew about a 5 million-yuan ($817,000) “consulting fee” given to the family by Wang Zhenggang, a former urban planning official in Dalian when Bo was the city mayor.

“I have feelings for Gu Kailai -- she is a relatively weak woman,” Bo said yesterday, according to the transcript. “By telling on someone else she could soon get out of the death penalty. Who could she accuse? All the accusations against me come from Gu Kailai.”

Police cordoned off the streets around the courthouse with metal barricades and yellow plastic tape, emptying out an area about the size of two football fields in what’s normally a crowded city center. The only people on the streets nearby were police in blue uniforms, while black sedans and white vans occasionally came and went from the court building.

Bo’s testimony gave details about his life with Gu, and why she and their son, Bo Guagua, moved abroad. Guagua went to the elite British boarding school Harrow and later to Oxford University, and then graduated from Harvard’s John F. Kennedy School of Government.

Had Affairs

“I did have extramarital affairs -- she was very angry about that,” Bo said, adding that he had no need to embezzle money because his wife had made millions of yuan as a lawyer. “So her bringing Guagua abroad was out of anger.”

In a country where the Communist Party maintains strict control of sensitive political trials, the state-run Global Times newspaper said in an editorial the decision to release updates on Weibo, Sina Corp.’s Twitter-like microblogging platform, “served as an important guarantee of a fair trial for Bo in accordance with the law.”

“This degree of transparency has not happened before,” the editorial said. “This will create a precedent that will bring lasting impact to the future trials of sensitive cases.”

The details revealed in the trial demonstrate that “no one is above the law,” the party’s flagship People’s Daily newspaper said. “In the fight against corruption we are after both flies and tigers.”

Hailed Openness

The official Xinhua News Agency said both domestic and foreign media have “hailed the openness and transparency” of the live blogging.

“The public also generally believe that this showcases the Communist Party of China’s resolve in combating corruption and that the move represents historic progress for the rule of law in China,” Xinhua said.

Allowing so much of Bo’s trial to be aired publicly is risky for the Communist Party because it may garner Bo new support from people impressed by his vigorous defense, according to Randy Peerenboom, a law professor at La Trobe University in Melbourne, Australia. That, in turn, may backfire on Bo because the party is still in control, he said.

“If it is the case that Bo Xilai has once again wandered off-script, and the leadership is worried that his cool performance under pressure has won him new admirers, then it is possible that he will receive a much harsher punishment than originally planned,” Peerenboom wrote in an e-mail. 

- Contributed by Bloomberg News - Aug 25, 2013 

Wife and police chief ‘in love triangle’

The most spectacular trial that China has ever witnessed closed with its biggest shock of all as Bo Xilai revealed a tragic love affair between his wife and his city Chongqing’s police chief.

Defiant until the end of his trial on charges of corruption and abuse of power, the 64-year-old fallen leader brushed his lawyers aside to make a final oration that displayed all the bravura that made him such a magnetic figure, and caused China’s other leaders such anxiety.

Behind the biggest drama to hit China's Communist Party since the protests in Tiananmen Square, Mr Bo said, was a story of how Chongqing’s police chief, Wang Lijun, had fallen inexorably in love with his wife, Gu Kailai.

 ^{Gu Kailai, wife of ousted Chinese Communist Party Politburo member Bo Xilai}

When Mr Bo caught the pair, he claimed, the police chief of the city he ruled had fled his wrath, running to the safety of the United States consulate in a city 160 miles away, a treason which led to their mutual downfall.

“Wang was secretly in love with Gu Kailai for a long time,” Mr Bo told the court, adding that the police chief had declared his passion in a love letter. “In the letter it said he had always had feelings for Kailai and he could not help himself. He even slapped himself in the face eight times.”

“You are acting crazily,” Gu told her suitor, according to Mr Bo. “No, I used to be crazy, but now I am sane,” Wang allegedly replied.

  ^{Former police chief Wang Lijun (Reuters)}
Mr Bo said Wang had visited his home every day because he was drawn to his wife, and suggested the relationship did not go unrequited.

“They had an extremely special relationship. I was fed up with it,” said Mr Bo. “Gu Kailai even brought Wang’s shoes into my house. I told Zhang Xiaojun (an aide) to get rid of them immediately”.

But when Mr Bo uncovered the relationship, his city’s police chief knew he had made a potentially fatal mistake. “He knew my character. He hurt my family. He hurt my feelings,” Mr Bo said.

There had long been rumours in Chongqing that the previously close bond between Mr Bo and Wang was shattered when they became tangled in a love triangle.

But the allegations by Mr Bo raise new and intriguing questions about the planning of, and the motive for, the murder of Neil Heywood. Wang had previously confessed that he helped Gu plan Mr Heywood’s killing.

Mr Bo’s tale of mad passion caused an instant sensation on the Chinese internet, with one popular post suggesting that the lovers were doomed from the start: Gu was a Scorpio while Wang was a Capricorn and therefore incompatible.

Before revealing the drama in his household, Mr Bo had earlier ridiculed the prosecution’s closing statement, saying: “Even the lowest level television soap cannot have this kind of plot,” he said.

Responding to accusations that he must have been aware of the luxurious lifestyle his family was living, under his nose, Mr Bo asked: “Is Gu Kailai a civilised woman or not?

“Did she want me to love her or not? Would she have come and bothered me with these trifles every day? I was the governor of Liaoning province,” he added.

To accusations that his 25-year-old son, Guagua, spent huge sums travelling the world and carousing, Mr Bo said: “If Guagua kept asking for money for fancy watches and cars and international travel, if he wanted us to pay for his friends and owed the bank huge sums of money, would I have loved such a son?”.

Instead, Mr Bo said, his family was so frugal that he was still wore padded winter trousers that his mother had bought for him in the 1960s.

Mr Bo also repeated that much of the evidence against him had been coerced.

“All of the written confessions I signed before were made against my will,” he said, adding that he had hoped, by confessing, to win rehabilitation.

“I had a hope deep in my heart that I would not be expelled from the Party, I would keep membership and I would keep my political life.”

It was unclear whether Mr Bo’s impressive rhetoric would win him more public support, with hundreds of thousands of people reading his statement on the live-feed from court.

But it did little to help his legal case, and his lawyers even admitted that it was only after 2005, when Mr Bo was promoted to higher office, that corruption had stopped. “He woke up,” they said.

Mr Bo’s defiance may also cost him dearly, in the form of a tougher sentence.

“He not only denied crimes that have been fully backed up with solid evidence, but he also recanted his earlier testimony,” the prosecutors said. “His attitude is to refuse to confess wrongdoing... he should receive harsh punishment.”

If convicted, Mr Bo technically faces the death penalty, although a member of China’s Communist Politburo has never been executed.

As he made his final statement, perhaps the last statement he will ever make in public, Mr Bo said: “I know I am not a perfect man, I am subjective and easily angered. I have made some serious mistakes and problems. I failed to manage my family.”

The court will reconvene at a later date to reveal the verdict.

- Contributed by Malcolm Moore, Jinan  Telegraph UK

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China's Bo Xilai on trial

JINAN, Aug. 23 -- Jinan Intermediate People's Court in east China's Shandong Province continued to hear the case of bribery, embezzlement and abuse of power involving Bo Xilai for a second day on Friday.
 

The 64-year-old Bo is former secretary of the Chongqing Municipal Committee of the Communist Party of China (CPC) and former member of the CPC Central Committee Political Bureau.

Prosecutors accuse Bo accepted bribes worth about 21.8 million yuan (about 3.5 million U.S. dollars) from businessmen Tang Xiaolin and Xu Ming and embezzled five million yuan in public funds from the Dalian municipal government. He was also accused of abusing power when dealing with his wife Bogu Kailai's murder case and the defection of his associate, Wang Lijun, in 2012.

On the second day of the trial, prosecutors presented evidence that Bo accepted a large sum of money and property from Xu Ming through his wife, Bogu Kailai, and his son, Bo Guagua.

In the morning session prosecutors presented documentary evidence and played a video recording of Bogu Kailai's testimony on Aug. 10 this year.

Prosecutors also read testimony by Bogu Kailai and Frenchman Patrick Devillers.

Video and audio evidence shown in court indicated that Xu Ming provided funds for Bogu Kailai to buy a villa in France worth over 2.32 million Euros (16.25 million yuan), and that Bo Xilai was aware of this.

In the afternoon session, evidence included testimony of witnesses including Zhang Xiaojun, photographs of material evidence, confessions and the handwritten confessions of the defendant, proving that through his wife and son, Bo received almost 4.43 million yuan from Xu Ming, to pay for international and domestic air tickets, accommodations and travelling expenses, to pay off credit card debt, and buy a Segway scooter.

Prosecutors, the defendant and his lawyers examined the evidence.

Facing key facts of the charges, Bo defended that the evidence was irrelevant, saying he had only a vague impression of amounts and no one had told him exactly how much money was spent. His lawyers expressed views on the truth of witnesses' testimonies and the legality of the documentary evidence.

Prosecutor responded directly, pointing out that the defendant had expressed numerous conflicting views on key facts during his defense.

Prosecutors said that the evidence presented in court was taken legally from clear sources and should be examined comprehensively in the context of the entire case.

Wang Zhenggang, then director of the Dalian municipal bureau of urban and rural planning and land, appeared in the afternoon to testify on embezzlement charge against Bo.

Wang was handled in a separate case.

The court will continue to hear the case on Saturday to maintain the continuity of the trial, as agreed by prosecutors, the defendant and his lawyers. 

- Contributed by DuMingming、Liang Jun

Bo's trial updated live on microblog

A woman views the Chinese social media website Weibo at a cafe in Beijing on April 2, 2012 (AFP/File, Mark Ralston)



The highly anticipated trial of former politburo member Bo Xilai began Thursday, surprisingly with an almost unprecedented flood of real-time information about the proceedings.

The Jinan Intermediate People’s Court used Weibo, a popular Twitter-like microblog service, to deliver a running account of the trial since its start. The number of followers of its microblog page has jumped from less than 10,000 on Wednesday to over 300,000 by 7 pm Thursday. The court also arranged a media lobby at a nearby hotel, to provide live feed of trial details to reporters.

This is the first time details of a trial of a senior Chinese official have been released real-time to the public. In the past, such high level court trials took place behind closed doors, with details being released only after sentencing.

Bo calls wife mad after she testifies against him 

JINAN, China (Reuters) - Fallen Chinese politician Bo Xilai called his wife insane after she testified at his landmark trial on Friday that he knew of money and a villa in the French Riviera that prosecutors say were given to the couple by a businessman friend.

The video and written testimony by Gu Kailai directly contradicted Bo's robust defence on Thursday, and appear to set him up to be found guilty in China's most dramatic trial since the Gang of Four were dethroned in 1976 at the end of the Cultural Revolution.

"He should know about it all," Gu said in a video recording shown in court and posted on the court's microblog, when asked whether Bo knew that she and their son, Bo Guagua, had received money from plastics-to-property entrepreneur Xu Ming.

Bo dismissed Gu's testimony as the ravings of a madwoman.

"Bogu Kailai has changed, she's insane, often tells lies," Bo said, according to transcripts on the court microblog, using Gu's official but rarely used name. "Under the circumstances of her mental illness, the investigators placed huge pressure on her to expose me.

"Her testimony as far as I am concerned, was (given) under psychological pressure, and driven by (hope of) a reduced sentence," he added.

Gu has been jailed for the murder of British businessman Neil Heywood in November 2011, the crime which eventually led to Bo's downfall.

The businessman Xu, who is also in custody, was once close to the Bo family, but also testified against him on Thursday, according to the transcripts. Foreign reporters were not allowed into the court.

Bo, the 64-year-old former Communist Party chief of Chongqing metropolis, has been charged with illegally taking almost 27 million yuan (2.82 million pounds), corruption and abuse of power. Of that amount, about 21.8 million yuan came from Xu and another businessman Tang Xiaolin, the court said, citing the indictment.

Bo was a rising star in China's leadership circles when his career was stopped short last year by the scandal involving Gu.

Supporters of Bo's Maoist-themed social programmes say he lost out in a power struggle with capitalist-leaning reformists in Beijing, exposing divisions within the ruling party as well as Chinese society.

Last week, two sources told Reuters that Gu would only testify against her husband if a deal had been reached with authorities to protect their son.

A deal in which Bo can be swiftly convicted and sent to jail, sparing him a death penalty and with no repercussions for his son, would be in the interest of China's leadership, which wants the trial to be concluded without causing open friction between Bo's followers and critics.

On Thursday, observers said the court proceedings were probably scripted and that Bo could receive a pre-arranged sentence in exchange for limited outbursts that would show that the trial was fair, appeasing his followers.

The trial will continue for a third day on Saturday, the court said, despite expectations it could last just a single day.

VILLA IN NICE

In written testimony, Gu said she had shown Bo the graphics and slideshows for the design of a villa in Nice, France that was paid for by Xu. Bo asked her about the slideshows and according to Gu, she told Bo about Xu's involvement.

"Therefore he knew that I asked Xu Ming to pay for this villa in France," Gu said in her written statement.

In the poorly shot video, Gu appeared soft-spoken and composed as she was questioned by a worker from the state prosecutor's office. She laughed when asked whether she had been coerced into giving evidence.

Gu did not link Bo with Heywood's murder, but said he was aware she considered the Briton a threat to their son. According to testimony at Gu's trial, she killed Heywood because he had threatened Guagua after a business dispute with Gu.

Gu said Bo was also aware of her fears about the safety of Guagua, who is now in the United States
preparing for a law degree at Columbia University. Gu said she was afraid Guagua "would be kidnapped and killed in America".

"In 2011, Guagua's personal safety was threatened and Bo Xilai understood this," she said in her written testimony.

"We drew up a blacklist of suspicious people. One of them was Neil Heywood. I explained all of this to Bo Xilai."

Bo could face the death sentence, though a suspended death sentence is more likely, which effectively means life imprisonment, or a 20-year term.

Contributed by John Ruwitch - The Star (Additional reporting by Judy Hua in JINAN and Sui-Lee Wee, Ben Blanchard and Hui Li in BEIJING, Writing by Sui-Lee Wee; Editing by Raju Gopalakrishnan)

Bo's trial updated live on microblog

Related post:
China's content-rich microblogs

China's content-rich microblogs

Sites like Sina Weibo can even get Western figures and celebrities, like boxer Mike Tyson, to come aboard.

WHILE Twitter is blocked in China, there are local microblogging sites to keep me informed and entertained.

Among the providers for microblogging service include Sina, Tencent, Xinhua, Souhu, People’s, Phoenix, NetEase and more.

Sina tops the list with 500 million registered users and 46.29 million daily active users as of December 2012.

Its popularity is proven with public and media using “Weibo” to refer to its microblogging site, although Weibo stands for microblog in general.

(Twitter has over 200 million active users churning out 400 million tweets a day, according to its blog post in March this year.)

The Chinese microblogging sites have similar basic features as their US counterpart, such as tagging other users with the symbol @, trending topics with hashtags and posting within an allowed character limit.

But what sets Weibo apart from Twitter is the rich media content.

Besides photos and animated GIF, some Weibo allow users to embed video and music files, and start a poll in their posts.

These elements have enhanced the Weibo surfing experience and created an entertaining platform for all.

A unique feature on Sina Weibo is the charity platform. Users can initiate a charitable cause, pledge donation, sign up as volunteers or simply repost a cause.

I am drawn to Sina Weibo for one simple reason – you can find almost everyone on it, from celebrities to writers, and government departments to restaurants.

Many of the official accounts are well-maintained, providing frequent and useful updates.

While Chinese president Xi Jinping does not have an official account, there is an account dubbed “Xuexi Fensituan” (Learning from Xi Fan Club) dedicated to disseminate news and photos of his activities.

The account owner has denied speculations that the account was a publicity effort, claiming that he was only a supporter.

Sina Weibo, which was launched in August 2009, is celebrating its fourth anniversary this month.

In an unaudited financial report for the second quarter of 2013, Sina Corporation announced a 209% year-on-year growth for its Weibo advertising revenue, which amounted to US$30mil (RM98.74mil).
The non-advertising revenues also increased from US$23.8mil (RM79mil) in the same period last year to US$32.2mil (RM106.9mil).

Back in April, China’s e-commerce giant Alibaba invested US$586mil (RM1.9bil) to purchase an 18% stake in Sina Weibo. This deal valued Sina Weibo at US$3.3bil (RM10.86bil).

The population on Weibo continued to beckon Western figures and celebrities to come on board to reach out to their Chinese fans.

The latest to join Sina Weibo was retired American boxer Mike Tyson, whose username is “Quanwang Taisen” (King of Boxing Tyson).

After greeting Chinese fans on his maiden post on Monday, he went on to ask who is the best fighter in China.

Amid the genuine replies (Donnie Yan and Jackie Chan, for instance) came an answer that had everyone in stitches – chengguan.

The term refers to the city management officers who are often labelled as abusive for getting involved in physical brawls with street vendors.

A clueless Tyson then asked, “Who is Chengguan? A tough man? I’ve never heard it (sic).”

He mentioned it again in a post later, “So many guys talking about chengguan as a great fighter? Still not a clue about him … All I’ve heard about are Jet Li, Jackie Chan, Donnie Yen, and wait wait, the Chinese dama (middle-aged women)!”

(Local news reports said the term Chinese dama became a popular term when the women rushed to snatch up gold.)

Needless to say, Tyson’s Weibo went viral, attracting 200,000 followers in just three days.

Although Sina Weibo has a reputation for self-censorship – posts with sensitive topics or keywords are deleted – it remains largely as a platform for freedom of expression.

It was even described as China’s Hyde Park in a report by Xinhua in December 2011: “… An open space where people feel free to participate in public affairs”.

As such, Weibo is the place to gauge public sentiments and there are calls lately to urge opinion leaders to observe their social responsibility on social media network.

Contributed by Tho Xin Yi

• Tho Xin Yi (thoxinyi@thestar.com.my) sees Weibo as a tool to get first-hand news and gain insight into the Chinese society. She follows 329 users on Sina Weibo.

Beware of Aussie's “Asian dogs and pussies” attacking Chinese and Indian!

SYDNEY—Australia’s Mandarin-speaking ex-leader Kevin Rudd on Tuesday weighed into the case of two Chinese students who were burned and beaten in Sydney, sparking a media storm in their homeland, reports said.

Police confirmed that a 29-year-old man “suffered a fractured cheekbone and nose… as well as burns from a lit cigarette” during a robbery by six youths on a train in southern Sydney on Monday.

“A second male victim also suffered burns to the face during the alleged robbery,” police said in a statement.

One of the victims was identified as a Chinese blogger named Xuan studying for a masters degree in Sydney, who posted about the graphic attack on the microblogging site Sina Weibo.

“A gang of hooligans attacked us. Our noses are fractured and our bodies are covered in blood,” wrote Xuan, according to a translation in the Sydney Morning Herald newspaper.

“My friend’s cheekbone was crushed. They attacked us with glass and burnt us with lit cigarettes. My face is burnt and totally disfigured. Worst of all, I really hated their racist comments.”

Xuan claimed the group taunted them as “Asian dogs and pussies” and when his friend tried to wipe the blood from his nose “a teenaged girl stuffed my friend’s mouth with her tampon removed from her pants.”

There were many passengers and staff on the train, he added, but nobody intervened to help and another woman targeted by the gang even encouraged them to rob Xuan and his friend saying “they are Asian and they have got money.”

Xuan’s post about the attack was reposted on Weibo, China’s answer to Twitter, more than 10,000 times according to the Herald, and Australia’s ex-PM and former foreign minister Kevin Rudd also spoke up on the site.

Weibo newcomer Rudd wrote that he would “try to approach the police and department of education” about the incident, the Herald said.

Australia has gained an unwelcome reputation for violence against international students in recent years, with a string of attacks involving Indian students in southern Melbourne triggering diplomatic tensions.

There was intense publicity in India about the assaults, which included the stabbing murder of accounting graduate for his mobile phone, and Canberra conceded that some of the violence was racially motivated. - AFP

'This city is so dangerous': outrage in China over Sydney train assault 

Peter Cai

Will try to approach police ... a screen grab of Kevin Rudd's message on Weibo. 

A terrifying gang assault on Sydney train passengers has left two international students seriously injured and caused a media storm in China.

The alleged robbery, including racist taunts, drew a social media pledge from former foreign affairs minister Kevin Rudd and led to emergency talks at Sydney's Chinese consulate general.

Police said six people, aged 14 to 18, robbed passengers on a train between Central and Rockdale about 12.30am yesterday.

A picture from Xuan's blog. >>

Officers were called to Rockdale station about 15 minutes later, where they arrested three men, two aged 18 and one 19, a 14-year-old boy and two girls, aged 16 and 17.

They were all charged with a number of robbery and assault offences.

Yesterday's attack came just days after two safety warnings from the Chinese embassy in Canberra for citizens travelling in Australia. Many Chinese students studying in Australia have expressed their fear over growing violence directed against them.

One of the victims of the attack, known as Xuan, suffered from a fractured nose and burns from a lit cigarette.

The international student from China, seeking a master's degree at the University of Technology, Sydney, was travelling with a friend from Central to Rockdale when the attack happened.

A translation from Xuan's blog on the Chinese social media site Weibo reads: “I really wish all of this is just a nightmare. However, the smell of blood in my mouth and body pains reminds me that this city is so dangerous.

“A gang of hooligans attacked us. Our noses are fractured and our bodies are covered in blood. My friend's cheekbone was crushed. They attacked us with glass and burnt us with lit cigarettes. My face is burnt and totally disfigured! Worst of all, I really hated their racist comments.

“They were calling us Asian dogs and pussies while they were beating us. When my friend tried to wipe blood from his nose, a teenaged girl stuffed my friend's mouth with her tampon removed from her pants.”

Another woman passenger, who was also targeted by the thieves, allegedly told the attackers to “rob them, they are Asian and they have got money”.

Xuan and his friend were treated at St George Hospital in Sydney's south-west.

He said he would now take leave from study and return to China.

The incident has caused outrage in the Chinese student community across the country and Xuan's initial post was re-tweeted more than 10,000 times. Thousands of Chinese students have expressed their disgust online.

The incident has made headlines acrosss China, including on the popular news sites Sina News and the English language Shanghai Daily.

Chinese consular officials have also publicly expressed their support for the students. Fairfax Media understands that officials met at the Consulate General in Sydney this morning to discuss the incident.

Mr Rudd, a new Weibo user, told one of his online followers, writing in Chinese, that he “will try to approach the police and department of education"on behalf of the victims.

This website has sought comment from Mr Rudd's office.

One Sydney-based international student said: "Australia is known for its tolerance and multi-culturalism. Yet there is still a tiny minority who discriminate against the international students, especially the younger people."

"You can accept people with different sexual orientations. But why can't you accept people from different cultural backgrounds?"

Xuan also expressed his anger and disappointment at the lack of help from train staff and other passengers.

“Though there were no police on the train, there were many other people and train staff. It even stopped once at Wolli Creek, but nobody helped us!”

Peter Cai is The Age's Asian Affairs Reporter