China's corruption watchdog launches investigation into yet another senior executive
Another high-ranking executive in China is under scrutiny by the country's anti-corruption agency, highlighting an intensified crackdown on graft in the world's second-largest economy
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In yet another indication of the continuing crackdown in the world's second-largest economy, China's anti-graft watchdog is currently investigating another prominent business leader.
Zhou Jun, the president of state-owned Shanghai Industrial Investment, is currently being investigated by the Shanghai Municipal Commission for Discipline Inspection, a branch of the Central Commission for Discipline Inspection (CCDI). The CCDI released a statement on Monday stating that Zhou is suspected of serious violations of discipline and law, which typically refers to corruption. They further mentioned that he is currently undergoing disciplinary review and supervisory investigation, but did not provide any additional details.
Shanghai Industrial Investments has diverse operations in infrastructure, property, and pharmaceutical sectors. Additionally, Zhou had positions in various subsidiaries of state-owned groups listed in Hong Kong. However, he recently resigned from these posts, citing personal reasons.
Zhou,
has become the most recent high-profile executive in China to face investigation by the authorities. In 2021 alone, numerous influential executives across various sectors such as technology, finance, and real estate have either disappeared, been detained, or become subjects of corruption investigations.
Buildings in Beijing, China, on Friday, June 30, 2023.
Andrea Verdelli/Bloomberg/Getty Images
Detained, disappeared, or subject to investigations: Chinese business leaders are confronted with a rigorous crackdown. Recently, the CCDI announced its investigation into Zhang Hongli, a former senior executive vice president at the Industrial and Commercial Bank of China.
Content Following this, Chinese state-owned media outlet Cover News reported that Chen Shaojie, a tech entrepreneur and the founder and CEO of DouYu (DOYU), a Chinese live-streaming service backed by Tencent, had become unreachable. The report mentioned unconfirmed reports of Chen being investigated but did not disclose the authorities behind it. In response, a company spokesperson assured CNN that DouYu's operations were running smoothly and any significant developments would be promptly communicated.
The Chinese government's relentless crackdown, motivated by the ruling Communist Party's quest for control and increased worries about national security, persists despite the uneven Chinese economic recovery.
Global consulting firms have experienced mounting risks, including the potential for executive raids or detentions.
Recent developments have cast a discouraging shadow over the business community in China. In a recent address at the Bloomberg New Economy forum, Fred Hu, the CEO of Primavera Capital, highlighted that entrepreneurs are adopting a cautious approach due to the prevailing circumstances. He emphasized the urgency for China to revamp its legal framework, particularly by safeguarding entrepreneurs from arbitrary political intervention, and in some cases, even persecution.
