21st Mar 2018


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.

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)


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.

'Denial' - is meat the new climate change?

The European Parliament's agriculture committee meets on Tuesday, with speculation that the EPP will vote against a report on the EU plant protein plan if it mentions switching away from animals to plant-based diets.

Moria refugee camp is no place for people

Two years on from the highly-controversial EU-Turkey deal, many thousands of refugees are still trapped on Greek islands. One of them offers an open invitation to EU leaders to see their inhospitable conditions at the Moria refugee camp on Lesbos.

Column / Brussels Bytes

EU e-privacy proposal risks breaking 'Internet of Things'

EU policymakers need to clarify that the e-privacy should not apply to most Internet of Things devices. The current proposal require explicit user consent in all cases - which is not practical.

News in Brief

  1. EU to have 'immediate' trade talks with Trump
  2. Separatist activist renounces Catalonia leadership candidacy
  3. EU puts conditions on Bayer-Monsanto merger
  4. Hard Brexit would hit poorer Irish households hardest
  5. Finland hosts secretive North Korean talks
  6. EU to unveil 3% tax on digital giants
  7. German elected S&D leader in European Parliament
  8. Germany: nearly €350m child benefit goes abroad

Stakeholders' Highlights

  1. EUobserverStart a Career in EU Media. Apply Now to Become Our Next Sales Associate
  2. EUobserverHiring - Finance Officer With Accounting Degree or Experience - Apply Now!
  3. ECR GroupAn Opportunity to Help Shape a Better Future for Europe
  4. Counter BalanceControversial Turkish Azerbaijani Gas Pipeline Gets Major EU Loan
  5. World VisionSyria’s Children ‘At Risk of Never Fully Recovering', New Study Finds
  6. Macedonian Human Rights MovementMeets with US Congress Member to Denounce Anti-Macedonian Name Negotiations
  7. Martens CentreEuropean Defence Union: Time to Aim High?
  8. UNESDAWatch UNESDA’s President Toast Its 60th Anniversary Year
  9. AJC Transatlantic InstituteAJC Condemns MEP Ana Gomes’s Anti-Semitic Remark, Calls for Disciplinary Action
  10. EPSUEU Commissioners Deny 9.8 Million Workers Legal Minimum Standards on Information Rights
  11. ACCAAppropriate Risk Management is Crucial for Effective Strategic Leadership
  12. EPSUWill the Circular Economy be an Economy With no Workers?

Latest News

  1. EU leaders set for 'stormy debate' on digital tax at summit
  2. EU praises Turkey on migrant deal despite Greek misery
  3. Judicial reforms 'restore balance', Poland tells EU
  4. Whistleblower fears for life as US arrests Malta bank chair
  5. Behind the scenes at Monday's EU talks on Russia
  6. US yet to push on Nord Stream 2 sanctions
  7. EU mulls coercion to get refugee kids' fingerprints
  8. Five east European states prevent new CAP consensus

Stakeholders' Highlights

  1. European Jewish CongressThe 2018 European Medal of Tolerance Goes to Prince Albert II of Monaco
  2. FiscalNoteGlobal Policy Trends: What to Watch in 2018
  3. Human Rights and Democracy NetworkPromoting Human Rights and Democracy in the Next Eu Multiannual Financial Framework
  4. Mission of China to the EUDigital Cooperation a Priority for China-EU Relations
  5. ECTACompetition must prevail in the quest for telecoms investment
  6. European Friends of ArmeniaTaking Stock of 30 Years of EU Policy on the Nagorno-Karabakh Conflict: How Can the EU Contribute to Peace?
  7. ILGA EuropeCongratulations Finland!
  8. UNICEFCyclone Season Looms Over 720,000 Rohingya Children in Myanmar & Bangladesh
  9. European Gaming & Betting AssociationEU Court: EU Commission Correct to Issue Guidelines for Online Gambling Services
  10. Mission of China to the EUChina Hopes for More Exchanges With Nordic, Baltic Countries
  11. Macedonian Human Rights MovementCondemns Facebook for Actively Promoting Anti-Macedonian Racism
  12. Nordic Council of MinistersGlobal Seed Vault: Gene Banks Gather to Celebrate 1 Million Seed Collections