BEIJING -- Monday's murder conviction for the wife of Bo Xilai, once one of China's most powerful men, may have brought to an end the investigation into the death of British businessman Neil Heywood but it left in question the fate of her husband, who is being pursued for party "disciplinary violations."

Is Bo the next target of a deepening struggle? Or will he be spared from harsher punishments? Leading China analysts have varied responses but there is unanimity that Gu Kailai's conviction was also a nail in the coffin of her politician husband's career.

Wife of disgraced Chinese leader gets death sentence with reprieve

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'Politically carbonized'
To counter Bo's "continuing popularity" among some segments of the population, China's Communist Party attempted to depict the case in terms of the most heinous of crimes -- murder, said Joseph Fewsmith, a leading expert on Chinese politics at Boston University and author of several books on China.

"It certainly is a case of murder, but in a sense, the killing of Heywood allows the party to sidestep all the other issues -- the way Bo conducted his 'strike black' campaign, the so-called Chongqing model and his political ambitions -- by focusing on the murder," Fewsmith said.

Strike black refers to Bo's anti-corruption and anti-crime campaign that implicated millionaires, local officials, police officers and gangsters. Under the Chongqing model that Bo advocated, the state increased its role in society and led huge public projects.

"Despite the strong evidence of criminal activity (murder), it seems likely that many will continue to read this case as part of a political struggle," Fewsmith said.

And in this political struggle, China's leftist elite -- known as neo-cons -- are the likely losers, said Professor Jean-Pierre Cabestan, head of government and international studies at Hong Kong Baptist University and a prominent scholar on China.

Closed-door murder trial: Wife of ousted politician Bo Xilai faces China court

"Some neo-cons may have tried or be willing to save Bo Xilai, in order to serve their own interests. I am inclined to think they will fail, because both the outside world and the Chinese blogosphere know too much about this terrible couple, their family and their wealth," Cabestan told NBC News.

"In other words, Bo is a liability, he is worn out, he is politically carbonized," he added.

'Chongqing model' dead or alive?
"But we should not jump to the conclusion that the reformists will enjoy an upper hand in the coming months," Cabestan said, adding that the Chongqing model that Bo championed was not sustainable.

"It's too expensive for the state, too hostile to private businesses and too distant from the rule of law," Cabestan said.

"But the pro-state, pro-state-owned enterprises leaders have not been totally defeated and there are so many vested interests around the perpetuation of a strong and entrepreneurial party-state," Cabestan said.

Professor Bo Zhiyue, expert on Chinese politics at the National University of Singapore, agreed that Bo was finished politically, but argued that his governing style was not necessarily dead.

"With Bo as a major competitor out of the way, the new leadership could be more stable," Bo Zhiyue told NBC News.

"However, they can't avoid using some of Bo's programs in its new policies because Bo's Chongqing model has really provided a lot of good experiments for China's future development, in particular with regards to income inequality, public housing, and new growth model."

Scandal sends China's netizens into feeding frenzy

China's leadership is acutely aware of the growing income inequality that the country's economic prosperity has produced, with newly wealthy political and business elites prompting resentment among the majority.

Indeed, official and online media have given coverage to a growing number of grassroots protests driven by the discontent felt by those left behind in the economic race, or those alienated by the corrupt collusion of wealth and power.

"There is consensus that the government needs to allocate more resources to address social injustice and income inequality," according to Li Mingjiang, China politics professor at the S. Rajaratnam School of International Studies in Singapore, noting the efforts of China's leadership in this regard.

"In that sense, the Chongqing model is not dead at all," he told NBC News.

Appeasing the poor
The government has been trying appease many people in undeveloped and poor regions of Western China, for example, by increasing state investments in these regions. Nevertheless, the consensus among China watchers is that Bo went too far in his politics and governing style. 

More China coverage from NBCNews.com's Behind The Wall

"Bo Xilai (was) too extreme in his policy in Chongqing, particularly his Cultural Revolution style political campaign," Li said. "These extreme policies are dead, at least for the coming years."

However, China's ruling elite had to deal with the fact that technology made it impossible to keep the case under wraps.  

"The amount of information and the intensity of discussion that were revealed in the social media exerted a lot of pressure on the party to release more information about the Bo Xilai case partly in order to forestall and clear rumors," Li added.

"The party has to be very careful not to unnecessarily antagonize Bo's supporters and sympathizers because these people are vocal and scrutinizing ... various forms of social media," he said.

To Cabestan, Bo's "political death or carbonization have been in part caused by the Internet and the speed with which outside information and rumors have circulated in China."

In sum, the experts with whom NBC News spoke agreed that while Bo may be neutralized through the case against his wife and the diciplinary measure he faces, the country's leadership will likely tread carefully given Bo's enduring popularity.

So the suspended death sentence handed down to Bo Xilai's wife signifies a "decision made by the highest leadership," said Professor Jerome Cohen, a veteran authority on Chinese law at New York University.

"The state leaders know that Bo Xilai is still very popular and has lot of support, and to that extent, the court's decision is the most popular option and the best compromise they could have come out with," he added.

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Updated at 2:30 a.m. ET: BEIJING — The wife of Bo Xilai, the former high-flying Chinese politician, was sentenced to death with a two-year reprieve after being found guilty Monday of murdering a British businessman, marking the swift descent of a man who was once one of China's most powerful figures.

The sentence means Gu Kailai is likely to face life in prison, provided she does not commit offenses in the next two years, Reuters reported.

Zhang Xiaojun, a Bo family aide who admitted to helping Gu with the murder, received a nine-year jail sentence, a witness to the hearing said. Non-official media were not allowed in the courtroom.

Witnesses said that neither would appeal the decision.

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Gu's prosecution in the killing of Neil Heywood was the first step in Beijing's efforts to resolve the biggest political scandal to hit China in decades. Bo, the former party secretary for the southwestern metropolis of Chongqing, had been a controversial figure in Chinese politics with his embrace of Marxist policies and his liberal use of local police to silence critics.

After wife's conviction, what next for Bo Xilai?

The high-profile case shed unwanted light on high-level government corruption and murder by Chinese Communist Party elite. With party leaders already highly sensitive to the public perception of instability and corruption within their ranks, the scandal broke as Beijing prepared for a once-a-decade leadership change.

The conviction of Gu, 53, was all but ensured when the murder charges were released by state media with reassurances from unnamed investigators that there was ample evidence to convict.

Scandal sends China's netizens into a feeding frenzy

"The facts of the two defendants' crime are clear," the investigator told China's official state news agency, Xinhua, late last month. "The evidence is irrefutable and substantial." 

What remained to be seen, though, was how the Communist Party would punish one of its own — the wife of a man many experts once considered a serious candidate for China's all-powerful nine-person standing committee.

The answer was hinted at in the carefully composed narrative that has come out in the Chinese media about the case. During the one-day trial Aug. 9, the premeditated way Gu Kailai planned and carried out the murder of her former business partner was clearly evidenced, but it was steeped in justifications and rationalizations — so much so that by the end of Xinhua's account, Gu came off as a protective mother pushed to the edge.

Business dispute?
Heywood, 41, allegedly had become embroiled in a business dispute over a deal he entered into with Gu's son, Bo Guagua. When that business venture fell apart, Heywood allegedly sent a menacing email saying he would "destroy" Gu unless he was paid the tens of millions of dollars he believed he was owed from the deal. 

He then allegedly locked the 24-year old in a house in Britain.

"The few days last November, when I learned my son's life was at death's door, my mind indeed collapsed," Gu said, according to Xinhua. It was then, suffering from "chronic insomnia, anxiety and depression, and paranoia," according to an expert panel, that Gu decided she had to kill Heywood to protect her son.

"To me, that [Heywood's email] was more than a threat. It was real action that was taking place," Gu testified, "I must fight to my death to stop the craziness of Neil Heywood."

Allegedly enlisting the help of Zhang, her former family employee and an ex-soldier, Gu lured Heywood to Chongqing with the intention of poisoning him. On Nov. 13, Gu and Heywood had dinner before driving back to the villa he was staying at in the Nanshan Lijing resort.

China puts cops on trial for 'bending the law' to help wife of ousted politician

There, the two drank whisky and tea until Heywood became drunk and vomited. Zhang then entered the room and helped Heywood to his bed while also allegedly slipping two vials — one filled with a cyanide compound and another of a different drug — of poison to Gu that she had procured earlier. When Heywood asked for water, Gu allegedly poured the poison into his mouth.  

The next day, Gu told Wang Lijun, Chongqing's police chief and a trusted ally of Bo Xilai, of the killing. 

Wang secretly recorded the conversation but also helped to cover up the murder. In response to inquiries by the British government and the Heywood family, Chongqing police reported the death as an accident due to alcohol poisoning. 

Gu may have gotten away with murder, but she couldn't anticipate what came next: a falling-out between Wang and Bo Xilai that led the police chief to flee in March to the U.S. consulate in Chengdu, where he sought asylum. There, with U.S. officials present, Wang dropped the bombshell about Gu's involvement in Heywood's murder.

Wang's explosive accusation and his taped evidence forced the Ministry of Public Security to reopen the case and may have sealed his own fate. Xinhua's account ominously noted that his entry to the U.S. consulate was "without authorization." 

Wang's trial is expected soon.

City divided by disgraced Communist leader's legacy

More questions than answers
Those who knew Heywood well have raised serious questions about the chain of events laid out by the Chinese courts. Could Heywood, who has been described as a gentleman and generally not violent, have really threatened Gu's son? Did Gu Kailai truly have a mental breakdown? Or was this a convenient way for the Communist Party to distance itself? 

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More important, what does the sentence bode for Bo? He's under house arrest while under investigation. Does his wife's show trial signal the end of the public phase of this scandal? Will Bo be disciplined internally by the Communist Party? Or will he also get his day in court? 

The fact that Bo's name doesn't come up in Xinhua's account bodes well for his chances of riding out this storm. But in the opaque world of Chinese Communist Party politics, it will likely be a fruitless endeavor reconciling the official party narrative with what actually happened.

Top China politician's wife named as murder suspect

Professor Jerome Cohen, a leading authority on Chinese law at New York University, called the court decision a "typical Chinese compromise."

"It was a show trial that raised more questions than it answered. The sentence given was anticipated because to execute her immediately would have alienated more numbers of people who still support Bo Xilai or who don't think the trial was telling us the whole story or fair," he told NBC News in a telephone interview.

"This trial demonstrated the need for genuine due process of law in China because this case did not have it, it doesn't show us the involvement of her husband, there are many missing links in the puzzle," he added.

He Weifang, a prominent professor of law at Peking Universitgy, concurs that the court verdict was "absolutely a political decision, not a judicial one." "If the crime were committed by ordinary people, the outcome would have been different," he told NBC News.

Reuters contributed to this report.

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Updated at 8:40 a.m. ET: HEFEI, China -- The woman at the center of China's most politically explosive trial in three decades did not contest charges of murder on Thursday in a hearing that lasted just seven hours and could determine the fate of former politician Bo Xilai.

Bo's wife, Gu Kailai, chose not to contest the charge of murdering British businessman Neil Heywood, whose alleged secretive dealings with the couple fuelled a scandal exposing the intimate nexus between money and power in China's elite.

A formal verdict will be delivered at a later date, a court official said, recounting details of the closed-door hearing.

---

The dramatic account of Heywood's death by poisoning is also likely to sound the final death knell to Bo's political career, even as sympathizers cast him as the victim of a push to oust him and discredit his left-leaning agenda.

"The accused Bogu (Gu) Kailai and Zhang Xiaojun did not raise objections to the accusations of intentional homicide," the official, Tang Yigan, said after the hearing, referring also to Gu's co-accused, an aide to the family. 

State television showed Gu, wearing a dark pant suit and white shirt, being led into the courtroom and being seated in the dock. She appeared to have put on weight since she was detained earlier this year. 

Wife of ousted China politician charged with Briton's murder

The court official quoted prosecutors as saying Gu and Zhang had killed Heywood with a poisoned drink in far southwestern Chongqing last November, after a business dispute between Gu and Heywood. Bo ruled the vast municipality until he was sacked in March just before the murder scandal burst into the open. 

As a result of the dispute with Heywood, Gu had become convinced Heywood was a threat to her son, Bo Guagua, the official said without elaborating. 

"Gu Kailai believed that Neil Heywood had threatened the personal safety of her son Bo (Guagua) and decided to kill him," the official added, reading from a statement to a packed news conference of dozens of reporters who had been barred entry to the courtroom in the eastern city of Hefei. 

The aide, Zhang, had driven Heywood to Chongqing last November from Beijing and prepared a poison which was to be put later into a drink of water. Later that day, Heywood met Gu at a hotel, where he became drunk and then asked for water. 

"She poured a poison into his mouth," the official said. 

Gu was represented by government-appointed lawyers. Her trial is seen by many Chinese as part of a push against her husband Bo, who made powerful enemies as he campaigned to join the next generation of top central leaders.

Bo was formerly considered a contender for the inner sanctum of power -- the party's Politburo Standing Committee -- in a once-in-a-decade leadership transition that is currently under way. The new leadership is expected to be unveiled in October.

Earlier, a British diplomat was seen entering the court, but did not comment. International media were not allowed into the court.

Censorship
State censorship of Internet chatter on the trial was swifter than normal on Thursday. Users of China's popular Twitter-like service Sina Weibo played cat and mouse with authorities to discuss the case and used word play to try to get around the controls.

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Police dragged two protesters away from outside the Hefei Intermediate People's Court in eastern China. The two Bo supporters kicked and yelled as they were put into an unmarked car after they had appeared outside the building, condemning the trial as a sham and singing patriotic songs that were the trademark of Bo's populist leadership style.

"I don't believe it. This case was decided well in advance," Hu Jiye, a middle-aged man wearing a T-shirt and baseball cap, told foreign reporters at the rear of the court building, which was cordoned off by dozens of police standing in heavy rain.

Hu and his friend were then shoved by police officers into a car. His companion, also a middle-aged man, struggled and yelled, "Why are you taking me? Why are you taking me?"

But many ordinary Chinese citizens were unaware of the trial, or felt that it had little impact on their lives. 

"We are not really interested in the Bo Xilai and Gu Kailai cases because they are far removed from us, we are very busy with our daily lives," Beijing construction manager Ji Jiaminghe told NBC News. 

"The lesson of the Bo Xilai case is that it was wrong to go against the political mainstream," Ji said, even as he acknowledged that he loved to sing and listen to the "Red Songs" that Bo promoted. 

Communist Party aristocracy
The trial of Gu, the glamorous daughter of ruling Communist Party aristocracy, is the most sensational since the conviction of the Gang of Four more than 30 years ago for crimes during the 1966-76 Cultural Revolution.

Gu and family aide Zhang Xiaojun face the death penalty if convicted of poisoning the former family friend.

Police sources initially claimed Gu had poisoned Heywood in a disagreement over an illicit financial transaction she had wanted him to help her complete, and they portrayed Gu as a greedy wife who was translating her husband's connections into dollars.

Sources: Briton killed after threat to expose Chinese leader's wife

But Gu's alleged personal motive for the killing --  that Gu believed Heywood was a threat to her son -- may count as a mitigating circumstance and help Gu avoid execution.

Any hesitance to put Gu to death would make sense, according to Hu Xingdou, an outspoken blogger and frequent government critic, told NBC News. 

Scandal sends China's netizens into feeding frenzy

"The death penalty is not likely precisely because a political struggle is involved and people don't like political rivals being executed," he said.

In announcing the indictment about two weeks ago, the official Xinhua News Agency made clear the government considers the verdict a foregone conclusion.

"The facts of the two defendants' crime are clear, and the evidence is irrefutable and substantial," it said.

The trial and sentencing of both Gu and Zhang are widely seen as a prelude to a possible criminal prosecution of Bo, who is being detained for violating party discipline -- an accusation that covers corruption, abuse of power and other misdeeds.

Bo, who was a favorite of party leftists and promoted himself as a friend of the poor and an enemy of corruption, was sacked as Chongqing party chief in March after his police chief, Wang Lijun, identified Gu as a suspect in Heywood's death.

Press behaved 'appallingly'?
On Thursday morning, there was no sign of Gu's elderly mother, nor of any members of Heywood's family in or around the courtroom.

In London, Heywood's mother accused the press of spreading lies about her son. "You've all behaved so appallingly," Ann Heywood said Wednesday outside her home.

British media have suggested Neil Heywood was involved in money laundering, worked for British intelligence or that he was Gu's lover. Ann Heywood claimed to know more about the case than was in the public domain, but she wasn't specific and said the truth would come out eventually.

 More China coverage from NBCNews.com's Behind the Wall blog

Before his ouster in the spring, Bo, also the son of a revolutionary veteran, was one of China's most powerful and charismatic politicians. But his overt maneuvering for a top political job, as well as high-profile campaigns to bust organized crime and promote communist culture -- while trampling over civil liberties and reviving memories of the chaotic Cultural Revolution in the process -- angered some leaders.

Bo is the first Politburo member to be removed from office in five years and the scandal kicked up talk of a political struggle involving Bo supporters intent on derailing succession plans calling for Vice President Xi Jinping to lead the party for the next decade.

Bo is in the hands of the party's internal discipline and inspection commission, which is expected to issue a statement about his infractions. That would open the way for a court trial with charges possibly including obstructing police work and abuse of power. Thus far, Bo has been accused only of grievous but unspecified rules violations.

Reuters and The Associated Press contributed to this report.

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Updated at 12:25 p.m. ET: BEIJING -- The wife of ousted Chinese politician Bo Xilai and a family aide have been charged with the murder of a British businessman, the government said Thursday, pushing ahead a case at the center of a messy political scandal that exposed divisions in the country's leadership.

The official Xinhua News Agency reported that the prosecutor's indictment said Bo's wife, Gu Kailai, had a falling out with Briton Neil Heywood over money and worried that it would threaten her and their son's safety. Gu and the aide, Zhang Xiaojun, are alleged to have poisoned Heywood together, the report said. Heywood's death in November was attributed initially to a heart attack or excessive drinking.

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"The facts of the two defendants' crime are clear, and the evidence is irrefutable and substantial. Therefore, the two defendants should be charged with intentional homicide," Xinhua said.

It did not give a date for the trial, but a family lawyer told Reuters it was likely to take place on August 7-8.

Thursday's brief report is the first official news that the case against Gu is proceeding since the announcement three months ago that she and Zhang were being investigated and that Bo was being suspended from the powerful Politburo for unspecified discipline violations. The Xinhua report did not mention Bo's case or a separate party investigation into Bo.

Prosecutors have interrogated Bo and Zhang and have "heard the opinions" of their defense lawyers, Xinhua said.

The scandal has exposed the bare-knuckled infighting that the secretive leadership prefers to hide and affirmed an already skeptical public's dim view about corrupt dealings in the party.

City divided by disgraced Communist leader's legacy

Disappeared from public view
Since Bo was dismissed in March, he and his wife Gu, formerly a powerful lawyer, have disappeared from public view and have not responded publicly to the accusations against them.

The charges were filed in the eastern city of Hefei, Xinhua said Thursday. It did not say when exactly the indictment was issued or when the crime occurred and why the case is being prosecuted in Hefei and not in Chongqing, the city Bo ran as Communist party secretary and where the couple lived.

But according to Si Weijiang, a prominent lawyer in China who is followed by 170,000 people on his microblog, Hefei, in eastern China's Anhui Province, was selected due to its political reliability.

Wang Shengjun, who is the chief justice of China's Supreme People’s Court, is from Anhui and the province has, according to Si, built a reputation of being politically reliable and harsh on defendants.

"The case being filed at Hefei, will set Chief Justice Wang's mind at ease," Si wrote Thursday.

Scandal sends China's netizens into a feeding frenzy

In another post, Si noted the intense political ramifications of this case.

"This is a political case. No accidents is success. So it [the court] must be a place that can be trusted," he wrote.

But Fang Hong, a Chongqing resident featured in a piece by NBC News in May, hailed the prosecution move as a "vindication of my criticism" of Bo's rule.

"They tried to destroy the rule of law so as to make it convenient for them to murder people, and now they will get what they deserve," he told NBC News.

"This case is being handled according to the law," he said, adding that "some people with limited understanding wrongly think it is a political striuggle, but it is not. ... What the law says is what they will get."

 

Political ascent stopped
Thursday's announcement comes months before the ruling Communist Party unveils a new top leadership.

Before his ouster, Bo was one of China's most powerful and charismatic politicians. The son of a revolutionary veteran, Bo was seen as a leading candidate for a position in the Politburo Standing Committee, the highest ranks of power, when a younger group of leaders is installed later this year.

Son of sacked Chinese official fights back

On his rise, Bo led high-profile campaigns to bust organized crime and to promote communist culture. In doing so, however, his administration ran roughshod over civil liberties, angered some leaders and alienated others with his publicity seeking.

The removal of Bo has triggered rifts and uncertainty, disrupting the Communist Party's usually secretive and carefully choreographed process of settling on a new central leadership in the run up to its 18th congress.

Left-wing supporters of the charismatic Bo have defended him as the instigator of a much-needed new path for China, and many of them see him as the blameless victim of a plot.

Behind the Wall: Full NBC News coverage from China

The 18th Party Congress, scheduled to be held late this year, will appoint that leadership. President Hu Jintao and Premier Wen Jiabao will then step down from their government posts at the National People's Congress in early 2013, when Vice President Xi Jinping is likely to succeed Hu as president.

Growing credibility gap
Analysts here agree that the legal steps announced Thursday are part of the authorities' effort to dispose of the case and remove a major distraction before the once-in-a-decade leadership succession later this year.

However, this week has been a week of disruptions that have kept government propaganda officials and censors busy.

Full international news coverage from NBCNews.com

Besides the ongoing saga of Bo, Beijing this past weekend dealt with the worst flooding in nearly six decades. Just as news of Gu’s charges came out, word also broke that the death count from the flooding, which previously had stood at 37, had been bumped up to at least 77. Many Beijing residents had been highly dubious of earlier government estimates of the death toll, highlighting the party's credibility gap.

The news also came on the eve of the 2012 Olympics in London, where China hopes again to top the tables in gold medals.

Still, the government was not taking any chances: the comments section on the official Weibo account of popular Chinese state newspaper, People's Daily, was turned off for the post regarding Gu's murder charges.

The Associated Press and Reuters contributed to this report.

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BEIJING – It’s the biggest news in China in a long time – and China’s netizens are finding ways to get around censors to gossip and get the latest online rumors.

The scandal, which has spread to the New York Times front page and other Western news outlets, is centered on Bo Xilai, the former Communist Party secretary of Chongqing, China’s biggest municipality with 30 million residents, and his wife, Gu Kailai, who is a murder suspect in the death of British businessman Neil Heywood.

Before the bombshell announcement from China’s official news agency, Bo had been considered one of the top contenders for the country’s highest echelon of power, the standing committee of the politburo of the Communist Party, in the upcoming power reshuffle this fall.
 
No further official information has been released since last Tuesday’s news, but it still seems as if China’s entire population of 1.3 billion people is talking about the scandal. And despite the government’s best efforts to squelch online chatter, the country’s savvy computer fans have come up with novel ways to circumvent Beijing’s watchdogs.  

---

Foreign 'rumors'
Foreign media have continued to feed the voracious appetite for more juicy details from Chinese netizens.

Many in China have made use of VPNs (virtual private networks) to circumvent the Great Firewall to access these Western reports, as well as overseas Chinese websites like Boxun, or Hong Kong and Taiwanese media reports. 

Every time a new article comes out, it’s instantly translated into Chinese and posted on Weibo, China’s most popular Twitter-like service, followed by tons of comments and re-tweets.

The foreign reports have delved into everything about Gu Kailai, Bo’s wife, from her business dealings to her friends and close personal relationship with Heywood.

The extravagant lifestyle of Bo Guagua, Bo Xilai and Gu’s only son, has also come under the spotlight in foreign news reports – from his hard-partying ways at expensive private schools such as, Harrow, Oxford and Harvard, to his penchant for fast cars.   

And on Tuesday Reuters added a new wrinkle to the story with a report that Bo initially agreed to a police probe of his wife's role in the murder before abruptly reversing course and demoting his police chief, which eventually led to the downfall of both men.

The government has applied every method possible to silence not just the local press, but the public passing along tidbits from the foreign reports.

Posts regarding the Bo scandal, defined by the official media as “rumors,” are usually deleted quickly after they show up online. Major web portals have been ordered to intensify their monitoring of allegedly scurrilous reports. And government mouthpieces like CCTV and Xinhua have appealed to the public to stop spreading rumors.

Chinese authorities do not issue empty threats – at least six people were recently arrested for posting gossip about a rumored military coup in Beijing.

Getting around the Great Firewall
But cracking down on gossip is an enormous project in China. The country’s sophisticated netizens – who now number up to an estimated 500 million – pass along rumors using puns, hints and words with different Chinese characters but similar pronunciation to key words.

For instance, the word “Bo,” which also means “thin” in Chinese, has been replaced by the term “not thick.” Many posts have called Bo “the not thick governor” in order to slide past censors.  

Meanwhile, some witty netizens have referred to the city of Chongqing as “tomato,” because tomato is pronounced “Xi Hong Shi” in Chinese, which sounds the same as “Western Red City.” That seemingly cryptic reference is to the “red revolutionary song” campaign initiated by Bo when he was governing Chongqing. As the son of a major leader of China’s Communist Revolution, Bo was also famous for promoting a campaign to revive Cultural Revolution-era “red culture.”

“This is the most remarkable event [in China] ever since 1976, when the Gang of Four was arrested,” said Yao Bo, a China-based Internet observer and blogger, in a phone interview with NBC News. He was referring to when the leaders of China’s disastrous Cultural Revolution were publicly purged from the Communist Party a month after Chairman Mao’s death – marking the end of one of China’s most turbulent political eras.

“When people used to talk about politics on forums or bulletins before, it was censored much more easily, since such discussion always had a topic. Weibo is like a virus, it can share information much faster and becomes uncontrollable,” Yao said.

‘We Firmly Support the Central Party’
The government has tried to introduce a counter-campaign of sorts by ordering all major newspapers and TV news channels to pledge their loyalty to the Communist Party. Within a few days after Bo’s scandal was exposed, a variety of publications had editorials with the same headline: “We Firmly Support the Central Party.”
 
Some leftist websites that openly supported a return to a Maoist-like regime have been mysteriously shut down in recent days – another signal suggesting its best time to stick to the party line. None of them has publicly stated that they are following an official order, but they all went into “maintenance-mode” simultaneously.
 
Over the last few days less gossip devoted to the Bo scandal has appeared online, which Yao attributed to both censorship and the political nature of the scandal. 

“What Bo did was to pull China in an extreme direction when nobody knew where it was going. The leftists say ‘it’s a red trial,’ the rightists say ‘it’s a disaster.’ Now he’s down, people have nothing to argue about. This is a signal sent by the highest leaders that they do not wish to go back to China’s past.”
 
“This has made netizens realize one thing: rumor is another name for truth,” said Yao.

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The British businessman whose murder has sparked political upheaval in China was poisoned after he threatened to expose a plan by a Chinese leader's wife to move money abroad, two sources with knowledge of the police investigation said.

It was the first time a specific motive has been revealed for Neil Heywood's murder last November, a death which ended Chinese leader Bo Xilai's hopes of emerging as a top central leader and threw off balance the Communist Party's looming leadership succession.

Bo's wife, Gu Kailai, asked Heywood late last year to move a large sum of money abroad, and she became outraged when he demanded a larger cut of the money than she had expected due to the size of the transaction, the sources said.

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She accused him of being greedy and hatched a plan to kill him after he said he could expose her dealings, one of the sources said, summarizing the police case. Both sources have spoken to investigators in Chongqing, the southwestern Chinese city where Heywood was killed and where Bo had cast himself as a crime-fighting Communist Party leader.

Gu is in police custody on suspicion of committing or arranging Heywood's murder, though no details of the motive or the crime itself have been publicly released, other than a general comment from Chinese state media that he was killed after a financial dispute.

The sources have close ties to Chinese police and said they were given details of the investigation.

Bo ouster shows "ruthless" China politics: ex-U.S. envoy Huntsman

They said Heywood - formerly a close friend of Gu and who had been helping her with her overseas financial dealings - was killed after he threatened to expose what she was doing.

"Heywood told her that if she thought he was being too greedy, then he didn't need to become involved and wouldn't take a penny of the money, but he also said he could also expose it," the first source said.

The sources said police suspect the 41-year-old was poisoned by a drink. They did not know precisely where he died in Chongqing. But they and other sources with access to official information say they believe Heywood was killed at a secluded hilltop retreat, the Nanshan Lijing Holiday Hotel, which is also marketed as the Lucky Holiday Hotel.

The sources said Gu and Heywood, who had lived in China since the early 1990s, shared a long and close personal relationship, but were not romantically involved.

The sources did not know details of the offshore transactions that Heywood facilitated for Gu, but said exposure of the deals would have imperiled her and her ambitious husband, who was campaigning for promotion to the top ranks of China's leadership. Bo has since been ousted over the scandal.

'Jackie Kennedy of China' suspected in death of British businessman

"After Gu Kailai found that Heywood wouldn't agree to go along and was even resisting with threats - that he could expose this money with unknown provenance - then that was a major risk to Gu Kailai and Bo Xilai," said the first source, requesting anonymity due to the sensitivity of the case.

It was not possible to get official confirmation of the case police are building against Gu. The Chinese government did not respond to faxed questions about the case. Some of Bo's leftist supporters have said the case could be a campaign to discredit him.

Gu, who is in custody and facing a possible death sentence for murder, and Bo could not be reached for comment. Bo has not been seen since appearing at parliament in March, when he held a news conference decrying the "filth" being poured on his family.

Efforts to contact Heywood's mother and sister at their homes in London were unsuccessful. The door to the mother's home carried a note saying she would not speak to reporters.

Heywood was Gu's 'soulmate'
Heywood had spent his last week in Chongqing in Nan'an district, an area politically loyal to Bo, and stayed at two hotels: the Nanshan Lijing Holiday Hotel and the Sheraton hotel.

Staff at each hotel said they knew nothing of a British man dying there. A guard was barring access to an apparently empty row of villas within the grounds of the Nanshan Lijing Holiday Hotel on Sunday and Monday, saying a meeting was going on.

Heywood's falling-out with Gu followed a period in which she had grown distant from her ambitious, perpetually busy husband and she had turned to Heywood as a soulmate, sources said.

"Bo and Gu Kailai had not been a proper husband and wife for years ... Gu Kailai and Heywood had a deep personal relationship and she took the break between them deeply to heart," said Wang Kang, a well-connected Chongqing businessman who has learned some details of the case from Chinese officials.

"Her mentality was 'you betrayed me, and so I'll get my revenge'," Wang said in his office, decorated with pictures of himself meeting senior officials, including Bo's late father, the revolutionary veteran Bo Yibo, a comrade of Mao Zedong.

Heywood got to know the powerful family when Bo Xilai was mayor of Dalian in the 1990s. Heywood helped with getting the couple's son, Bo Guagua, into an exclusive British school, Harrow, said one of the sources with police contacts.

The scandal over Heywood's death broke in February when Bo's former police chief, Wang Lijun, fled to a U.S. consulate after he had confronted Bo with allegations of Gu's involvement. He spent about 24 hours inside the consulate before he left into the hands of Chinese central government authorities.

Bo was stripped of all his party positions last week, ending his bid to join the upper echelons of the Chinese leadership at a Party Congress late this year, and opening the door to jockeying among rivals to get a place in the new lineup.

It was not immediately clear how Heywood would have helped Gu shift large sums of money offshore, though China's capital controls pose a formidable barrier to anyone trying to move large sums of yuan out of the country.

Chinese leaders' salaries are not extravagant and there have been questions about how Bo managed to fund the expensive Western schooling and lifestyle for his son, Bo Guagua, who also studied at Oxford university and is enrolled at Harvard. Bo said in March the schools were funded by scholarships.

The sources said there had been no sign of any dispute between Gu and Heywood until October and November when the argument over funds began. The lack of a paper trail made it difficult for police to determine how much money was involved, they added.

Police suspect Heywood took a poisoned drink, according to one of the sources, and died on November 15. Both sources said Gu was not present at the scene.

The sources said Heywood had stayed at the Nanshan Lijing Holiday Hotel, a secluded complex of rooms and villas in green hills overlooking Chongqing that Gu Kailai had visited in the past. Staff there said they had no knowledge of the death of a British man at the hotel in November.

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BEIJING – The political shock waves set off from within a U.S. diplomatic compound by a disgruntled ex-cop in the southwestern city of Chengdu have culminated into what may well be China’s biggest political scandal in years.  

Already removed from a powerful regional post, the controversial but high-flying political star Bo Xilai has been purged from all his positions in China’s ruling hierarchy, and now his wife has been named a murder suspect, according to official announcements.

It was Bo’s former police chief and trusted aide, Wang Lijun, who ultimately led to Bo’s downfall and the criminal detention of his wife for her suspected role in the death of a British businessman. 

In February, Wang was said to have sought asylum in the U.S. consulate in Chengdu, spending roughly 30 hours there. Now in government hands, the former police chief has reportedly turned against his boss, with incriminating evidence of the Bo family’s crimes and corruption.

“No Hollywood movie can match this Chongqing political drama,” observed prominent blogger Michael Anti, referring to the megacity by the Yangtze River, over which Bo held sway for five years.

And coming in the midst of China’s once-in-a decade leadership transition – the nation’s first political succession in the glare of Internet-driven public opinion and perhaps its most challenging ever – the political upheaval has torn away the aura of leadership unity, with sobering implications for China’s future.

 

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To Communist Party, former favored son is ‘dead’
The latest bombshell came on Tuesday when China’s state-run news agency Xinhua reported that Bo’s wife Gu Kailai was detained and is being investigated for her suspected role in the “intentional homicide” of British businessman Neil Heywood – once a close family friend.

 

The other suspect in Heywood’s death is Zhang Xiaojun, who is described as an “orderly” working in Bo’s family home.

An inquiry has been re-opened on the basis of information provided by Wang, the ex-police chief, in connection with Heywood’s death. His death last November was originally blamed on “excessive” alcohol, but now poison is suspected, with a possible motive of economic disputes with the Bo family.

'Jackie Kennedy of China' suspected in death of British businessman 

Bo – a princeling, or son of one of the Communist Party elders, Bo Yibo - gained national fame for his own crackdown on crime and corruption and for his effort to revive a Maoist-era “red culture” movement.  He attempted to use the so-called Chongqing model of development as a jumping board for joining the highest leadership body in the power transition later this year. The Chongqing Model emphasized state-led investment, with development zones, transportation links and incentives to lure business, according to Bloomberg.

“He was bound to fail,” said Professor Hu Xingdou, an analyst and frequent government critic. “He was going against the tide with his Chongqing model that was repeating the methods of the disastrous Cultural Revolution.”

With the announcement of Bo’s wife’s detention, China’s Communist Party seemed to officially disown the former favored son.  

Bo’s conduct has “seriously violated the party’s disciplinary rules, damaging the affairs of the party and the country and badly harming the image of the party and the country,” the People’s Daily, the Communist Party’s flagship newspaper declared Wednesday.

The leaders’ decision over Bo “was signaling that they were able to act very quickly, to make a decision on it and to get it over with as soon as possible because they do not want to derail the actual transition that’s coming later in October this year,” according to Damien Ma, a top China analyst at Eurasia Group, a consulting firm.

Ma dismissed suggestions that Bo’s dismissal reflects any factional fighting within the Communist Party or that it would lead to Tiananmen Square protests-style turmoil. “No, him alone is not going to create another 1989,” he said.

China’s leaders essentially disowned him “very quickly, and that was clearly to show to the rest of the Party that Bo Xilai is dead; do not support him.  It’s telegraphing to his supporters that this is done, we’ve made the decision, let’s move on, I think that’s what the message is,” said Ma.

China’s challenging future
“The decision showed that the top leadership has achieved unity where before there might have been differences of opinion,” concurred Hu.  “And this unity is good for leadership succession and also good for social stability, because now no one will sympathize with Bo.”

The professor also described as “understandable the crackdown on Internet rumors while deliberation was going on, but now that there is leadership unity, it is natural to allow the freedom to comment.”

Moreover, for Hu, the decision also showed the “determination” to fight corruption and crime. “But it was accidental in this case because without the Wang Lijun incident, Bo’s crimes and corruptions might not have been exposed,” he added.

Ma was skeptical about the idea that Bo’s case had anything to larger political reform.

“The Communist Party is trying to institutionalize a lot of the norms and procedures, but at the end of the day, these mass-scale personalized politics happen, and they happen with a lot of fierceness and unpredictability,” he said, referring to the impact of Bo’s case on succession politics.

As for the challenges for China’s next generation of leaders? 

“I would say that, over the next decade, political and social risks in China are actually going to be more challenging and more difficult than the past 30 years combined,” said Ma. “They are facing a lot of issues they’ve never dealt with before, primarily socio-economic inequalities and political issues that are brought out by this enormous economic growth, and they haven’t had time to pause and think about what to do about them.  Frankly, this is a very challenging decade for China internally.”

Social media afire
Not surprisingly, China’s blogosphere spun into a frenzy in the hours before the fate of Bo and his wife was officially announced, culminating in a face-off between netizens and Chinese Internet authorities.

As early as Tuesday afternoon, people forwarded posts that “a very important announcement” would be made on the primetime news program. By the time the news was finally read out on the late evening bulletin at 11 p.m., virtually every post on Weibo, China’s most popular Twitter-like service, was about the fall from grace of Bo and his family.

Meanwhile, a battle between the online “rumor spreaders” and government “rumor cleaners” raged on.  Spokesmen from leading Chinese websites such as Baidu, Sina and Tencent pledged on camera they would do their best to develop and deploy an advanced prevention system—fortified with human monitors 24/7 to prevent the spread of false information.

“We will absolutely prevent Weibo from becoming a hotbed of rumors,” said Chen Tong, the chief editor of Sina.com which hosts of Weibo.

But rumors – especially in China – often spread too quickly to contain.

And, it would appear, sometimes stories that start as rumors end up being true.

Months ago, people were talking about Heywood’s mysterious death and speculating about Bo’s ouster, but the posts always wound up being deleted minutes after being posted.

“While you are trying to refute a rumor, that rumor becomes true. Why bother to refute? Today’s rumor is tomorrow’s truth,” said one user called Yuan Tengfei on his Weibo page.

“You want us to sing red songs, but you are more black than the black society. This is sarcastic,” said another Weibo user called Longcan.  (In Chinese, “black society” means mafia.)

Boxun – an overseas Chinese Website censored in China for its bold reporting on mainland politics – fed sleepless, fascinated Chinese readers with even more dramatic rumors soon after last night’s news.  Boxun’s latest report alleges that Mrs. Bo was involved in multiple murders and that the order for getting rid of Heywood came directly from her husband, because the Englishman knew the family had transferred millions of dollars of assets to foreign countries.  (A common practice among many of China’s wealthy families.) 

Teng Biao, a prominent human rights lawyer, joked on his Twitter page: “I almost want to write a movie script. Mafia, affair, international espionage, guns, murder, trial, princeling, coup. This movie would be a big hit."

Researcher Isabella Zhong contributed to this report. 

 

Updated at 9:45 p.m. ET: The Chinese Communist Party suspended high-flying politician Bo Xilai from its inner circle Tuesday following speculation that he is connected to the murder of a British businessman, China’s news agency Xinhua reported.

In addition, Bo’s wife, Gu Kailai, once a celebrated lawyer, was jailed, as was a Zhang Xiajun, who worked in the family’s home, the Guardian of London reported.

Bo, 62, had been suspended from his position as Communist party boss in Chongqing last month after the city’s former police chief defected to the U.S. Consul and alleged that Bo had ties to the murder.

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The British businessman, Neil Heywood, was found dead in a hotel room in Chongqing on Nov. 15. At the time, police said he died of alcohol poisoning, but doubts were raised later and the U.K. embassy asked Chinese authorities to investigate further, the BBC reported.

The news agency said that Chinese law enforcement determined that Heywood had been killed and that Gu and Heywood had been fighting over unspecified “economic interests.”

Days before he was dismissed, Bo said at a news conference that some people were pouring “filth on my family.” He and his wife later disappeared from public view.

Fall from grace: China leadership contender Bo Xilai sacked

British Foreign Secretary William Hague said Tuesday he welcomed China's announcements on its investigation.

"It is a death that needs to be investigated in its own terms, on its own merits without political considerations," Hague told BBC television.

The decision to banish Bo from the Central Committee and its powerful, 25-member Politburo effectively ends the career of China’s most brash and controversial politician.

Bo and his wife had been called the “Jack and Jackie Kennedy of China,” according to the BBC. The son of a prominent Communist leader, Bo had steadily climbed the party ranks; observers of Chinese politics believed he would have been a contender when the party chooses its top leadership later this year, as it does once a decade.

Gu, an accomplished lawyer who also came from an influential Communist family, closed her law practice as her husband became increasingly powerful. In recent years, her health declined, a family friend told the BBC, and she stayed home to read books.

Ed Byrne, an American lawyer from Denver, Colo., told the BBC that when he knew Gu, she was attractive, charismatic and funny.

“They were the modern liberal element there," Byrne said.

Reuters and NBC News contributed to this report.

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