Out of Mao’s Shadow
perhaps prompt an investigation into the bankruptcy. With a show of hands, the workers voted to stage the protest in thirteen days. Then they elected a dozen representatives to negotiate on their behalf with the government. Xiao, Yao, and Pang were among them. Later in the meeting, Pang stood to speak. A tall, slender man who resembled an elderly professor but had only a high school education, he read to the workers a series of letters that he had written on their behalf and opened the floor to suggestions for improvements. Xiao noticed that Pang had crafted the letters carefully. There was no mention of their dissatisfaction with the political system nor of their support for democratic reform. Instead he positioned the workers as loyal supporters of the party leadership and repeatedly emphasized that their grievances were in line with the party’s laws and policies. One letter addressed to Jiang Zemin resorted to flattery, citing the party chief’s empty political theories and speeches approvingly and referring to him as a “beloved” leader and “respected elder.” Another appealed to a new provincial governor, Bo Xilai, for help, describing him as a “well-known virtuous official and excellent party member.” At the same time, the letters attacked Fan and city officials in vivid and unsparing terms: With the factory facing the massive challenge of the market and already in trouble, it was Fan Yicheng’s duty, in his official position as both managing director and legal representative, to construct a strategy for improving its overall economic performance. It was his responsibility to provide leadership in improving product quality, output performance, and the profitability of the enterprise…. Fan Yicheng did none of this. Following his appointment, he adopted a policy of cronyism in which all those who submitted to his will did well and anyone who resisted was dealt with accordingly. All dissent was outlawed. His close aides, friends and relatives were placed in company positions from which he could directly benefit…. These people worked hand in glove as a team to swallow billions of yuan in state funds, resulting in losses of tens of billions of yuan in state property—we have detailed evidence of all of this…. The sweat and blood of workers has been used to nurture a colony of parasites. Under the pretext of procuring goods, Fan took holidays abroad and gathered large amounts of foreign exchange to fill his personal coffers to the brim. At the factory, he bullied and intimidated workers, and used hundreds of thousands worth of public funds to refurbish his house and send his two children to study abroad. Fan and his corrupt friends used state funds to eat, drink, gamble, whore, and do anything they wanted. There were no limits to their extravagance…. Liaotie’s bankruptcy was not the result of economic restructuring any more than it was brought about by poor sales. It was the direct result of coordinated embezzlement of national assets and leeching off the workers’ sweat and blood by Fan Yicheng and his gang of parasites, with the collusion and support of former mayor Gong Shangwu…. The bankruptcy went through, leaving the workforce in tears and corrupt officials laughing all the way to the bank. Moreover, they are now using the embezzled funds to set up new private enterprises. As if by magic, they have transformed themselves into entrepreneurs, using
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