Xi Jinping’s Anti-Graft Campaign Seeks To Deflect Economic Pressure

After assiduously courting private investors and entrepreneurs, China’s Communist Party is finding their economic influence too much to handle. Pamir assesses that rife corruption, which undoubtedly is a real threat to President Xi Jinping’s prestige, will be a convenient excuse to use as needed to curtail foreign investment’s impact on local and central politics in China.  

On 8 January Xi Jinping, who also is General Secretary of the Chinese Communist Party, addressed the annual meeting of the Party’s Central Commission for Discipline Inspection and pledged that the Party will show no leniency for corruption. Xi said the top priority in the upcoming anti-graft fight will focus on “collusion between political and capitalist interest groups.” The Party worries about the growing influence of the private sector on Party policies and personnel appointments. Xi emphasized the Party will “resolutely thwart any attempt by interest groups to infiltrate the Chinese political sphere.”

Xi stressed that the next round of anti-graft investigations will target state-owned enterprises; the financial, energy, and pharmaceutical industries; and infrastructure development. The Commission later added the tobacco industry, rural development, grain storage and sales, and sports administrations to the list of key areas for investigation. 

From January to November 2023, the Commission inspected 57 central government-owned enterprises and five large financial corporations, all together investigating 67,000 cases. The investigations and prosecutions not only targeted officials in office, but also those retired for decades. In total, 45 government officials at and above vice-ministerial level were arrested for corruption, the largest number in the past decade. 

At the same time, an anti-graft campaign is also waging within the Chinese military. Deposed Defense Minister General LI Shangfu is said to be under investigation for corruption. On 29 December the National People’s Congress (NPC) removed nine generals, including a former Air Force commander, from their NPC seats, reportedly for corruption crimes.

Observers say Xi’s rejuvenated anti-graft campaign is designed to 1) consolidate his authority; 2) restrict the political influence of business interest groups; and 3) maintain public support as China’s declining economy is generating more public grievances.