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 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.

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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.

NYT: Increasingly outspoken military alarms China's leaders 

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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CHONGQING, China – Everywhere you go in Chongqing, you can see traces of the complicated legacy of Bo Xilai, the former Communist party chief who ran this municipality of 30 million people until scandal derailed him. 

At one time destined for a top post in China’s highest echelon of power, the standing committee of the politburo of the Communist Party, Bo aggressively poured money into this municipality in pursuit of his populist agenda.

To drive through the windy roads that snake around this hilly metropolis is to see a city in constant transformation. Towers of low-income housing complexes dot the skyline. These social housing projects were meant to address a major national issue: the lack of affordable housing, and provided homes that cost just a few hundred dollars a year to rent. And Bo had gingko trees, said to be one of his favorites, planted across the city.

But these city improvements came at a cost: His heavy investment in capital construction projects forced the city to borrow so much money to pay for it that Chongqing owes $20 billion to the China Development Bank, according to a news report on Wednesday. The tree planting saddled the city with a $1.5 billion bill just for 2010 alone.  

The improvements weren’t the only controversial aspect of Bo’s reign over this important gateway city to the western half of China, and since his demise his critics have stepped out of the shadows to talk about the darker side of life in what had become the former leader’s personal fiefdom.

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Told a Bo joke, got a year in a labor camp

In Chongqing, NBC News spoke with Fang Hong, a 51-year-old former forestry officer who made news earlier this week when he filed an appeal with a local court seeking compensation for what he alleged was an unfair sentence he served at a labor camp.

According to Fang, he was imprisoned for posting a two-line joke about Bo on his microblog that quickly went viral. Soon after, Fang said he was dragged in by police for questioning and later brought before a police tribunal where he was sentenced for “fabricating facts and disturbing public order.” 

Fang served his sentence at a labor camp where he said he was forced to assemble thousands of Christmas ornaments for export for one year.

Released earlier this year, Fang was emboldened by the criticism that has shrouded Bo following his high-profile falling out with his vice-mayor and former police chief, Wang Lijun, who famously sought refuge at the American embassy in Chengdu. That move by Wang sparked an international political scandal that now includes a murder mystery. Bo’s wife, Gu Kailai, is a murder suspect in the death of British businessman Neil Heywood; Bo has been officially disowned by the ruling Communist Party and has disappeared from public view.

Boisterous debate on Bo
Fang agreed to do an interview with NBC News on an outside promenade with commanding views of Chongqing’s skyline and the mighty Yangtze River below. Fang spoke confidently, eager to tell his story about the deprivations he faced while interned at the labor camp.

Between the presence of a foreign camera crew and his loud denouncements of Bo Xilai, Fang quickly drew a crowd of onlookers.

The first indication that things were going to get contentious with the crowd was when one short, middle-aged man standing next to the camera started muttering under his breath as he listened to Fang. 

Taking jagged drags from his cigarette and nervously flicking ash between puffs, the man’s voice rose incrementally to voice his protestations of Fang’s opinion about Bo. Those near to the man shushed him as they strained to hear what Fang was saying, but after one particular statement, the man clearly had enough.

“That’s bull---! Bo Xilai has done so much for Chongqing!” bellowed the man as he waved his cigarette at Fang.

The crowd erupted into a loud, boisterous debate on Bo, prompting NBC News correspondent Ian Williams to wrap up the interview so that Fang could quickly leave with his lawyers.

But before he left, Fang feistily told the man what he thought of his opinion, triggering a shouting match. One of Fang’s lawyers and some of the crowd had to separate the pair.

‘Since Bo Xilai took power I feel more secure'
Not everyone had negative feelings about the disgraced former party chief.

 One older woman in the crowd said:, “Before, I was worried to wear earrings because I was worried I’d get robbed, but since Bo Xilai I feel more secure seeing more police on the streets.”

Finally, a line of security guards rolled up and broke up the crowd. The guards were not forceful and they exchanged a few knowing nods with the throng of people who were loudly voicing their support for Bo.

Bo’s fall has clearly given his critics the opportunity they’ve long desired to voice their criticisms of him.

However, despite the accusations that paint Bo’s Chongqing was something akin to a modern-day Tammany Hall, the populism and perhaps most importantly, the pride he instilled in this mega-city suggest his popular legacy may last far longer than Communist Party officials would like.

As one driver told us, “Yeah, Bo might have been corrupt, but at least he did something for us – which is more than those corrupt officials who do nothing at all.”   

NBC News’ Bo Gu contributed to this report.

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.  

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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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