In recent news, China’s anti-graft watchdog has intensified its crackdown on corruption as it investigates yet another business leader. The president of Shanghai Industrial Investment, Zhou Jun, is currently under investigation by the Shanghai Municipal Commission for Discipline Inspection, which is a branch of the Central Commission for Discipline Inspection (CCDI). According to CNN, Zhou is suspected of serious violations of discipline and law, commonly referred to as corruption.
Zhou had held posts at several state-owned group’s Hong Kong listed subsidiaries before resigning recently citing “personal matters.” His company operates in infrastructure, property, and pharmaceuticals, making him the latest prominent business leader in China to be investigated by authorities.
This year has seen over a dozen top executives from various sectors like technology, finance, and real estate either disappear or become subjects of corruption investigations. The CCDI has also been investigating Zhang Hongli, a former senior executive vice president at the Industrial and Commercial Bank of China, and Chen Shaojie, the founder and CEO of DouYu.
These developments have heavily impacted the business community in China overall as international consulting firms face rising risks such as raid or detention of executives. Fred Hu, the chief of one of China’s leading investment firms suggests that entrepreneurs are “lying low” or “lying flat” against the backdrop of these investigations. He emphasizes the need for China to reform its legal system particularly for protecting entrepreneurs from arbitrary political interference even prosecution.