Banquet grills Chinese rich
- Source: Global Times
- [03:15 September 29 2010]
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By Fu Wen and Song Shengxia
US billionaires Warren Buffett and Bill Gates will host a banquet tonight in Beijing as part of their three-day visit that has generated debate about how China's wealthy should be mobilized to perform philanthropy.
The planned event has been described by local media as the "Hongmen Banquet," a feast set up as a trap for the guests, as earlier reports claimed that the two US billionaires would lobby the wealthy Chinese guests to give up their wealth.
The event remains shrouded in secrecy, however. The Bill & Melinda Gates Foundation Beijing Office, organizing the event, declined to comment.
However, a guest list for the charity dinner obtained by Chinese media revealed that Pan Shiyi and Zhang Xin, chairman and CEO of SOHO China, respectively; Niu Gensheng, founder of Mengniu Dairy; Chen Guangbiao, chairman of Huangpu Renewable Resources; and Feng Jun, president of Aigo Information Digital Technology Company, are among a total of 50 wealthy Chinese entrepreneurs invited.
Buffett and Gates have successfully convinced 40 US billionaires to donate half of their wealth, said to total $125 billion, in a campaign called the Giving Pledge.
Since Gates' and Buffett's trip to China was announced, reports have claimed that the two are on a mission to persuade wealthy Chinese entrepreneurs to make similar donation pledges, which allegedly scared away some potential attendees.
Despite Gates and Buffett having earlier said in an open letter that they do not intend to force anyone to give up their wealth, but want to share their thoughts on philanthropy with China's wealthiest, half of those invited declined the invitation, the Beijing Morning Post reported.
Some wealthy Chinese maintain a low profile, reluctant to discuss their wealth in public for fear of exposing their fortunes and inviting unwanted jealousy from have-nots.
However, Chen Guangbiao, an environmental-protection entrepreneur who is worth 5 billion yuan ($747 million), has expressed his willingness to donate all of his wealth to charities in China when he dies.
Feng Jun, an electronics entrepreneur who has announced that he intends to donate 100 percent of his fortune to Chinese charities, told the Global Times that he will miss the banquet due to a business trip to the US and would like to personally invite Buffet and Gates to discuss chari-table work in China.
According to the 2009 Hurun Philanthropy List, China's top 50 philanthropists donated nearly 3.9 billion yuan ($582.9 million) last year, quadrupling the figure from six years ago.
"The Chinese have been very generous for a long period of time," Rupert Hoogewerf, who publishes the Hurun Report - China's rich list - told The New York Times. "The difference has been that they do it between families and don't publicize it. What we're seeing now is a new era of transparency."
Ruey Liang, a US-based consultant for charities, told the Global Times Tuesday that China's philanthropy does not have to follow the Western model due to China's different culture and values.
"Chinese people seem to put more emphasis on family values. A charity system that takes Chinese culture into account is more likely to win the trust there and could therefore promote social welfare," he said.
Fang Tao, secretary-general of the Shenzhen Charity Federation, said that the fact that China's wealthy are reluctant to accept lobbying for donations is understandable.
"China's wealthy create and enjoy the fruit of their wealth in a shorter time than wealthy Americans, and they are relatively younger than their US counterparts," he said.
"Chinese entrepreneurs prefer to create more wealth to reward society, instead of donating their wealth," he added.
Lack of legislation
New non-governmental organizations and charities have sprung up lately, especially in the wake of natural disasters, which have re-ignited an interest in charity.
But the controversy over the event has combined with recent reports on the uncertain future of the One Foundation, founded by Jet Li, a famous film star, and stoked a heated debate on the state of Chinese philanthropy.
In an interview with China Central Television on September 12, Li said his charity foundation might be suspended in the future over questions of legal identity. Its private status prevents it from carrying out direct public fundraising.
A nationwide charity law to regulate donation and the operation of charity organizations has not come into force, although the first draft was made in 2005, the Legal Daily reported Monday.
"Chinese entrepreneurs are in an awkward position regarding charity," said Huo Jihe, chief editor of China Entrepreneur magazine. "On the one hand, the public hopes they donate to benefit society, but on the other hand, no watchdog or regulation can supervise the use of donations."
Central Hunan Province issued the country's first local donation regulation last week to promote transparent donations and prevent fraud, the Xinhua News Agency reported.
According to the regulation, donors and recipients have to sign a contract on the amount, time and how the donation will be used. Any donor who fails to follow the contract will be asked to pay the donation.
Zheng Yuanchang, who oversees charity work at the Ministry of Civil Affairs, told the Global Times Tuesday that there is no timetable to unveil the national charity law, but the Legislative Affairs Office of the State Council has been seeking opinions from government agencies on the draft of a national charity law since August 2009.
"A key question for the charity law is to define charity organization and clarify their responsibilities and a supervision mechanism," Zheng said. "Some local charity regulations will help complete the national charity law through legal practices."
Liu Linlin and Sun Wei contributed to this story
