Saturday

24th Jul 2021

Opinion

The curious case of the Czech president's missing advisor

  • Czech president Milos Zeman with Chinese president Xi Jinping. Zeman previously boasted of their 'special relationship'. (Photo: Czech president office)

The disappearance of Ye Jianming, chairman of China Energy Company Ltd (CEFC), and news of his investigation by China's Central Commission for Discipline Inspection has sent shock waves across the Czech media.

Ye has been a honorary advisor on economic cooperation with China to the Czech president Milos Zeman - who on many occasions welcomed Chinese investment to the country and has sometimes been criticised for his openly pro-Chinese attitude from by various political parties and journalists.

Read and decide

Join EUobserver today

Become an expert on Europe

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

Clueless as the Czech media have been on Ye Jianming's fate, the most surprising announcement came from the president's office.

After Chinese ambassador Ma Keqing's visit to Zeman, his spokesperson only tweeted that "Madam Ambassador did not confirm the speculations on detention of president's honorary advisor".

Meanwhile, CEFC Europe, in an apparent attempt to calm down the situation, was busy spreading the news that it did not, in fact, have anything to do with Ye, a move which replicated similar announcement by other branches, including CEFC Hong Kong Financial Investment Company Ltd.

Speculation rife

One can, and many did, speculate whether the detention of Ye was a result of an alleged power struggle between Xi Jinping and Jiang Zemin's clique in the party's leadership.

Or an exemplary punishment of a company who borrowed too much from state banks and the development bank.

Or a result of a bribery scandal involving Patrick Ho, former senior Hong Kong home secretary and president of CEFC's NGO branch, president of Chad and minister of foreign affairs of Uganda.

We may find out if and when Xi refers to the case at the National People's Congress meeting, but until then an interesting question arises for Czech-Chinese relations watchers: how will Ye's detention affect the Czech Republic and Zeman?

CEFC Europe, a branch of CEFC company, is not only one of the most important vehicles of Chinese investment in the Czech Republic, it is also widely considered to maintain close links to the Chinese state, especially through the arrested chairman Ye.

Tellingly, Ye was named a honorary advisor by president Zeman at the height of the surge of Czech-Chinese political and economic courtship in 2015 and CEFC was the company which led the 'investment spree' in the Czech Republic in the immediate aftermath.

Besides other companies, it invested in Travel Service, a company which owns Czech Airlines, bought the Slavia soccer club and the Lobkowicz brewery and owns properties in Prague city centre.

It also invested (from 2015 to 2017) in Empresa Media, a company which owns TV Barrandov, one of 'alternative' Czech media outlets whose bias for Zeman has since become notorious and played some role in his reelection to the office in January.

The Chinese state will most likely not let CEFC fall.

Some of its assets are too important and sensitive, like the deal with Rosneft which was promoted jointly by Xi Jinping and Vladimir Putin.

If the Chinese state takes over CEFC, it will probably run an audit of CEFC's assets.

Football, beer and TV?

While none of those in the Czech Republic seem dubious per se, it may come a little strange that a company which focuses on energy, invested in a soccer club, a brewery and a TV station.

President Zeman will not be affected domestically - after all, he has just won his second term in office, but the affair sheds bad light on the alleged special relationship with President Xi Jinping about which he boasted.

Xi apparently failed to tip off his arguably firmest supporter in Europe on his honorary advisor's alleged wrongdoing and its implications.

While Zeman's electorate does not care, his supporters in business circles who invest in China and depend on Zeman's alleged good terms with Xi might as well take notice.

Even if Zeman had Xi's ear, as he claims, apparently that does not extend to Chinese leader's mouth.

This time the trouble came to a Chinese company, but what happens when a storm hits one of the Czech investments in the Peoples' Republic of China? In that case supporting the Czech president hardly seems to matter.

Ivana Karaskova is a China analyst and chief coordinator of ChinfluenCE, international project mapping Chinese influence in central Europe run by the Association for International Affairs (AMO)

Disclaimer

The views expressed in this opinion piece are the author's, not those of EUobserver.

Stakeholder

China-EU relations in the new era

A new type of international relations is needed to advance China-EU relations to a new level, says the Chinese ambassador to the EU.

Germany says China using LinkedIn to recruit informants

Germany's spy agency says the Chinese state is trying to recruit high-ranking German officials via social media outlets like LinkedIn. It accused Chinese intelligence of setting up fake profiles to lure them into becoming informants.

Chinese hangover in Prague

President Zeman says closer ties with China will finally free the Czechs from EU and US pressure. His allies and opponents are united in scepticism.

Why aren't EU's CSDP missions working?

The EU deploys thousands of advisers to its missions abroad. Without addressing reform as a profoundly political struggle, however, the EU will remain successful only in operational advisory and trainings.

News in Brief

  1. Macron changes phone after Pegasus spyware revelations
  2. Italy to impose 'vaccinated-only' entry on indoor entertainment
  3. EU 'will not renegotiate' Irish protocol
  4. Brussels migrants end hunger strike
  5. Elderly EU nationals in UK-status limbo after missed deadline
  6. WHO: 11bn doses needed to reach global vaccination target
  7. EU to share 200m Covid vaccine doses by end of 2021
  8. Spain ends outdoor mask-wearing despite surge

Ukraine - Zelensky's authoritarian turn?

President Volodymyr Zelensky has begun his third year mired in mid-term unpopularity with a poll showing only 21.8 percent of Ukrainians would vote to re-elect him. More than half would prefer him not even to run for a second term.

Why the EU delay on supply chains? Corporate lobbying

EU legislation to clean up supply chains and corporate governance has been delayed after fierce industry lobbying. Voluntary commitments have repeatedly failed, now it is time for decisive regulatory action.

Stakeholders' Highlights

  1. Nordic Council of MinistersNineteen demands by Nordic young people to save biodiversity
  2. Nordic Council of MinistersSustainable public procurement is an effective way to achieve global goals
  3. Nordic Council of MinistersNordic Council enters into formal relations with European Parliament
  4. Nordic Council of MinistersWomen more active in violent extremist circles than first assumed
  5. Nordic Council of MinistersDigitalisation can help us pick up the green pace
  6. Nordic Council of MinistersCOVID19 is a wake-up call in the fight against antibiotic resistance

Latest News

  1. Far left and right MEPs less critical of China and Russia
  2. Why is offshore wind the 'Cinderella' of EU climate policy?
  3. Open letter from 30 embassies ahead of Budapest Pride
  4. Orbán counters EU by calling referendum on anti-LGBTI law
  5. Why aren't EU's CSDP missions working?
  6. Romania most keen to join eurozone
  7. Slovenia risks court over EU anti-graft office
  8. Sweden's gang and gun violence sets politicians bickering

Join EUobserver

Support quality EU news

Join us