NYTs: Communism A Lot Like Capitalism

… In a country that started permitting people to buy homes only in the 1980's, developers like Mr. Xu found a way to gain rights to prime land in [China’s] biggest cities. Now they reap huge profits by building large residential projects, often with hotels and other commercial buildings.

… little is known about Mr. Xu, 55, particularly how he earned his early fortune and developed his network of powerful political allies, who include several high-ranking Communist Party officials.

… China's real estate industry, like those in many other places, has been dogged by scandal - tales of illegal land grabs, corruption, government bribery, shoddy construction work and the forced relocation of millions of peasants and urban poor.

… He made money the same way other developers in China have: he negotiated with government officials to acquire cheap land,….

… Mr. Xu has worked the system to perfection

…, the Shanghai Shimao Group, which is listed in Shanghai, said it had revenue of $280,000 in 2003 but profit of $16.3 million. A year later, revenue jumped to $134 million, with profit of $20 million.

… People who work with Mr. Xu say he maintains his close ties to government officials and often makes large charitable donations to help stay in their good graces.

David Barboza, “Billionaire Builder of China,” New York Times, 12/29/05.