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.

LONDON—China’s biggest political scandal in decades has embroiled not just the U.S. but increasingly the U.K.

The series of publicly known events culminating in the removal of rising political star Bo Xilai from power appeared to have been triggered by an attempt by Bo’s former police chief to seek asylum in a U.S. consulate in Chengdu back in February.

However, it looks increasingly like it was the death of a British businessman last year that set off the chain of events.  And while it might not lead to any firings in the U.K. government, it certainly appears to have ruffled feathers in London.

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Murder in Chonqging?
Last November, Neil Heywood — a 41-year old Briton who liked to hint at a life of intrigue (his license plate contained the numbers 007) — was found dead last November in his hotel room in the southwestern municipality of Chongqing, which at the time was under Bo’s stewardship.  The cause of death was initially reported as cardiac arrest from overconsumption of alcohol.

Now it looks as though Bo’s ex-crimefighter, Wang Lijun, had evidence suggesting that Bo’s wife, Gu Kailai had engineered Heywood’s death. 

New details on Tuesday about Wang’s frantic 36-hour stay at the U.S. consulate in Chengdu in February suggest he tried to give American diplomats information implicating Gu in Heywood’s death and demonstrating that Bo had tried to prevent an investigation into his wife’s role. 

In a startling revelation, also on Tuesday, sources close to the Chinese investigation told Reuters that Heywood had threatened to expose Gu’s plan to move large sums of money overseas after a dispute over his cut from the transaction.   

Chinese officials began stepping up their inquiry into Heywood’s death after Wang was whisked away by Beijing authorities following his visit to the U.S. consulate.

Scandal sends China's netizens into afeeding frenzy

In Britain, opposition members of Parliament (MPs) have raised questions whether the U.K. government had been too cautious or slow to raise concerns in the case because it did not want to jeopardize commercial prospects in China.

During Tuesday’s Parliament session, Foreign Secretary William Hague presented MPs with a detailed timetable of events surrounding Heywood’s death.

“We have demanded an investigation. The Chinese authorities have agreed to conduct an investigation. There’s been a further discussion of that this afternoon,” he told MPs.  “

Hague said Foreign Office officials first heard in mid-January of rumors circulating amongst British expats in China.

But it wasn’t until a month later — a day after Wang’s ill-fated visit to the U.S. consulate — that officials flagged the case with Hague and other ministers back in London.

British government under heat
Hague’s appearance in Parliament coincided with a visit to 10 Downing Street by one of China’s top ministers, Li Changchun.

Li — the propaganda chief and a member of the all-powerful Communist Party Politburo Standing Committee — held a meeting with British Prime Minister David Cameron, who raised the matter with him.

In an abrupt departure from the earlier muted approach, Cameron has promised to demand more from the Chinese on Heywood’s death, which has become tabloid fodder over here.  Cameron also read the riot act to his intelligence chiefs.

The Foreign Office has declined to comment further on Li’s meeting or the situation regarding Heywood.

The story, in the meantime, continues to rivet the public in Britain and in China.

“I guess it’s just a good story for normal people,” said an overseas Chinese national now living in London who only wanted to be identified as Lucy.  “Murder, high-powered officials, it’s got all the ingredients.”

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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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. 

NEWS ANALYSIS

BEIJING – Wednesday’s conclusion of the National People’s Congress seemed to signal the end of Prime Minister Wen Jiaobao’s chapter in Chinese history.

It’s been widely reported though not yet confirmed that Wen—along with President Hu Jintao—is due to step down later this year. 

But little did we know Wen would take the opportunity to carry on a tradition enjoyed by his meddling predecessors: publicly shaking up the political field one last time and consequently sparking the biggest political scandal the nation has seen in years.

At his final press conference yesterday, the senior Chinese leader caused a stir when he criticized the leadership of Chongqing, one of the world’s largest municipalities, for its handling of the Wang Lijun incident, when the former deputy mayor of the western megacity allegedly tried to defect to the United States.

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Shattered leadership dream
The comment was viewed as an ominous sign for the future of Chongqing’s Communist Party secretary, Bo Xilai -- Wang's former boss. Bo, a tough but charismatic crime-fighting politician rapidly became a national figure through self-promotion more often associated with Western politicians.

In particular, Bo’s ruthless crackdown on organized crime in Chongqing and his promotion of Communist rhetoric and values through vehicles like “red songs,” soon gave him a national following that seemed to position him for ascension to the ultimate seat of power: China’s nine-member standing committee, which will be selected later this year.

That dream shattered this morning.

Fall from grace: China leadership contender Bo Xilai sacked

China’s state news service, Xinhua, issued a terse statement announcing that Bo had been replaced by Zhang Dejiang – currently vice premier of China’s state council – as Chongqing Party chief.

The announcement of Bo’s fall from grace was a bombshell for China’s public, who rarely get such a clear look at the political battles Chinese leaders prefer to fight behind closed doors. Bo’s dismissal quickly became the top trending topic on China’s Twitter-like service, Sina Weibo, generating an astounding 4 million tweets in the hours following the announcement.

While some netizens were quick to mock the alleged corruption of a supposedly virtuous politician, others were quick to defend Bo, whose campaign against organized crime captured the imaginations of disenfranchised people nationwide.

“I just want to have a safe and stable life… Bo gave us hope,” wrote one person on Weibo.

Si Weijiang, a Chinese lawyer, countered,  “There's no need to be happy....Sometimes people do need what the leftists offer.”

It’s a dramatic political fall for the 62-year-old Bo, who just weeks before appeared to be on the cusp of becoming part of the Communist Party elite.  

Rapid rise to top
The first public sign of faltering emerged when his vice-mayor Wang Lijun spent the night at the U.S. consulate back in February. It was widely believed that he was seeking refuge after coming under a government investigation for corruption.

Prior to becoming vice-mayor, Wang had spearheaded Bo’s signature political moment: a three-year campaign against criminal gangs in Chongqing that resulted in thousands of arrests and 13 executions. Dubbed the “Smash Black” campaign, the stunt was warmly received by Chongqing’s citizens, who had long bristled at the brazenness of organized crime in the region.

Despite the acclaim that came with their success in smashing organized crime in Chongqing, the two were not immune to criticism. Like so much here in China, the line between business and governance was blurred, and Wang soon found himself embroiled in an economic war between two local moguls.

When one of the Chongqing businessmen was arrested earlier this year, the man claimed he had an audio tape of Wang threatening him and warning him to leave the other mogul alone.

Wang was soon the focus of an investigation that threatened to bring an end to his political career. The very fact that the inquiry was allowed to happen – an act that can only occur with specific authorization from the highest levels of the Communist Party – may have signaled to Wang that his fate was sealed.

He snuck off to the U.S. Consulate in Chengdu, where both Chinese and embassy officials confirmed he spent the night before leaving on his own accord. However, officials on both sides have declined to comment on what was discussed between Wang and U.S. consulate officials that night.

Nonetheless, the slightest possibility that Wang might have revealed sensitive secrets about the Communist Party’s inner workings was not only a massive embarrassment to his boss Bo – who had handpicked Wang as his right-hand man years before – but also a crisis that made Bo a potential political liability with China’s greatest economic rival, the United States.

The incident also opened Bo up to criticism from the ruling elite’s more liberal factions who were outraged by his anti-crime campaign, the manner of which critics say demonstrated a blatant disregard for the criminal process.  In addition, his embrace of leftist policies in everyday life through “red songs,” text messages and a friendly approach to state-owned enterprise helped paint Bo as a polarizing threat to China’s liberalizing voices.

And it appears that Wen Jiabao may have shared those concerns.

Charismatic as he is controversial, Bo had been a wildcard with the potential to alter the dialogue in China’s influential nine-member standing committee, which sets economic and social policy for the nation.

Bo’s dismissal means that a potential voice of opposition to the economic and social map that Wen and Hu have laid the groundwork for over the past eight years has been removed.

Proving once again that in the world of Chinese politics, national stability reigns supreme.

NBC News’ Bo Gu and Isabella Zhong contributed research to this report.