Xu Zengping

Xu Zengping** (born April 1952), of Han ethnicity, is a native of Shandong province, born in Yantai and raised in Weifang. He is a political figure of the People's Republic of China and a member of the 11th National Committee of the Chinese People's Political Consultative Conference (CPPCC).

In 1971, Xu joined the military in the Jinan Air Force. In 1973, he transferred to the Guangzhou Military Region's sports team. He retired from the Guangzhou Military Region in 1983 and went into business trading electrical appliances, carpets, and agricultural by-products. By 1988, he had already become a millionaire. That year, he moved to Hong Kong with his wife — former China women's basketball star Liu Kexian. Together, they founded Chuanglui Group and Macau Chuanglui Travel and Entertainment Co., Ltd., in Hong Kong and Macau respectively. Xu currently serves as chairman of the board of Hong Kong Chuanglui Holdings Limited. In 2008, he was elected a member of the 11th CPPCC National Committee, as a specially invited representative in Group 57.

Acquisition of the "Varyag" Aircraft Carrier

In March 1998, businessman Xu Zengping and others purchased the unfinished aircraft carrier "Varyag" from Ukraine for US$20 million via auction, and spent another US$30 million to tow it back to China. The vessel was later retrofitted by the People's Liberation Army Navy to become China's first aircraft carrier, the *Liaoning*. Xu and his team negotiated in Ukraine several times. In May 2000, project control of the Varyag was transferred to China Shipbuilding Industry Corporation. The deal drew attention from the CIA, and due to U.S. influence, the Turkish government refused passage of the ship through the Bosporus Strait, citing port security concerns and rejecting all proposals.

While stranded in the Black Sea, the Chinese government, through CSIC, paid ITC Company US$8,500 per day and an additional monthly fee of US$17,000 to the Ukrainian port authorities. On August 25, 2001, the Turkish government relented and proposed 20 “safety conditions” headed by a risk guarantee deposit of US$1 billion. China met all requirements within just over two months, and after 16 months of being stranded, the Varyag finally passed through the strait on November 1, 2001. The vessel arrived in Dalian, China, in March 2002.

In August 2004, the Chinese government paid 878 million yuan to Macau Chuanglui Company — 278 million yuan for CSIC’s transportation and other expenses. Huaxia Securities, which held 80% of the project’s shares, received 480 million yuan, while Xu Zengping, who held 20%, received 120 million yuan. Afterward, the Varyag was fully managed by CSIC until its retrofit was complete and the vessel was handed over to the PLA Navy.

Writer of reportage literature and former lead writer at the PLA Navy Political Department Creative Studio, **Li Zhongxiao**, stated in his online series *"The Varyag Comes to China"*, that while he initially believed Xu was solely responsible for the carrier’s acquisition, five years of investigation revealed the Varyag project was a relay race with many contributors. He criticized the media and Xu for monopolizing credit and overshadowing the contributions of others and the “national team.”