At the end of this August, a news shocked Chinese economic field: Mr. Wu Jinglian, one of the preeminent economists of China, was reported by overseas websites to be involved in an espionage case. The article below is about the clarification of this case.
The hotly-discussed Wu Jinglian Spy Case finally proved to be a rumor. According to an insider, the news about Wu Jinglian Spy Case was initially reported by an American website. On August 28, this website published a report, using the tone of “an anonymous insider in Mainland China”. The report said that Wu Jinglian was suspected to spy for America and had been investigated by Chinese Department of State Security.
It was said that another famous economist was involved in that case. Frank Gong, an economist from J.P. Morgan Chase, became famous for the report telling Chinese future economic stimulation plan. But what made him became the focus of the public was his involvement in Wu Jinglian Spy Case. In this spy case, which proved to be a complete rumor, Wu Jinglian was considered to be the source of the information of Frank Gong’s report. And Frank Gong’s travel in America was rumored as “escaping from the storm eye and start of a long-term vacation”.
On September 4, J.P. Morgan Chase once again confirmed that Frank Gong was in America, attending the annual investment forum on emerging markets and he would come back to Hong Kong in the middle of September.
The Clarified Spy Case
In fact, when the Spy Case was spread popularly in the foreign countries, on the afternoon of August 29, the Development Research Center of Chinese State Council, which Professor Wu Jinglian worked for, published an announcement in the foreground of its homepage in the name of its Market Economy Institute, refuting the rumor of Wu Jinglian Spy Case to the public.
The announcement said: “Recently there was an unconfirmed hearsay about Professor Wu Jinglian in the Internet. Many people made calls to inquire and care about the recent situation of Wu Jianglian. We made contact with him just now. Presently his work and life are OK and he will attend the related academic conference as scheduled on August 30, 2008.”
On that day, Taiwan Central News Agency quoted the report from another media, saying that the rumor about Wu Jinglian being investigated was interrelated with Frank Gong, chief economist of J.P. Morgan Chase Greater China. According to the report, Wu Jinglian divulged to Frank Gong the information that Chinese government would save the stock market. Before that, Frank Gong issued a report on August 19, pointing out that Chinese relevant departments would give out 200 billion to 400 billion Yuan (USD 28.6 billion to 57.1 billion) to stimulate the economy.
This report was quoted by the media in Hong Kong and Taiwan after its publishing. Afterwards, Wu Jinglian expressed to the media that he felt perplexed about the motivation of the rumormonger. He thought that the process of rumor spreading was worth researching because this year was the 30th anniversary of China’s reform and opening up. Who on earth made such a rumor?
Frank Gong didn’t expect that he would be involved in the inexplicable Spy Case just because of the report he sent to his clients.
During his vacation in August, Frank Gong sent a research report to his clients, saying that Chinese central government had always been studying an economic stimulation plan of 200 billion to 400 billion Yuan (USD 28.6 billion to 57.1 billion). This report caused some shake in the market, which recovered clam soon.
When the storm caused by Frank Gong’s report came to an end, another news was spread in the foreign websites. This was about the divulgence of the state secrets by Wu Jinglian, a famous Chinese economist enjoying high prestige and universal respect. Some website even reported that the 78-year-old Wu Jinglian was captivated by an American Chinese beauty and divulged some secrets to her.
Source of the Rumor
According to the survey, such news was initially published by an American news website. Then another American website quoted the news and was even futher described it as an exclusive report that Wu Jinglian was said to be restricted in the freedom of action. This website even declared that no official confirm was gained after several days’ tracing. What’s interesting was that Wu Jinglian attended some public academic conferences.
For example, on August 30, Wu attended the seminar about China’s 30 years’ reform and opening up, which was held by Unirule Institute of Economy and Guangdong School of Humanities. When interviewed after the seminar, Wu expressed that he acquired the news 4 days ago when he was attending another conference. He said: “I felt rather inexplicable. After returning home, my family told us that such a rumor began to be spread several days ago. I neglected it, but it was spread more widely and the content became more absurd.”
Though the website mentioned above didn’t have direct interview, it still used the tone of “the anonymous insider”, giving out further report of this case. It reported that “Wu Jinglian has been restricted by Chinese government in the freedom of action and speech.”
The famous economist was involved in the Spy Case. This was a hearsay which can excite the whole Internet. The news was spread quickly. The scope of influence covered many portal information websites in Europe, America, Hong Kong and Taiwan.
Frank Gong’s Involvement in the Case
On August 30, Frank Gong was involved in the case. He was reported by the media to “start a long-term vacation”.
J.P. Morgan Chase rapidly and decidedly denied that Frank’s report was related with Wu Jinglian. When interviewed by the local media in Hong Kong, Frank Gong also expressed that he had not met Wu Jinglian for two or three years.
Simultaneously Frank Gong said that his report was basic on his careful observation and research. He pointed out that the process of Chinese economic decision was actually very democratic and the economic stimulation plan mentioned in his report was not a secret at all but a topic under discussion in the market. The plan included the adjustment of the value-added tax and individual income tax. The total amount reached several hundred billion Yuan.
What perplexed Frank Gong was that his presence in the conference in America was described as “escaping from the storm eye and start of a long-term vacation” by some media, after his involvement in Wu Jinglian Spy Case.
There was a remarkable fact that in this case the traditional media performed relatively more cautiously. Some Hong Kong newspapers, including the ones which used to be very interested in gossip, didn’t stir up trouble intentionally. Only a few words could be seen in their relevant reports. Hong Kong’s Economic Daily published a commentary on September 3, saying that Frank Gong’s so-called “100-billion-Yuan” economic stimulation plan was different from the theory of market economy held by Wu Jinglian.
