In a relentless pursuit of clean governance, President Xi Jinping’s crusade against corruption has penetrated the veiled sanctuaries of a covert missile force, the Communist Party’s upper echelons, and the national football team. Now, as the waves of this anti-corruption drive surge, the financial sector finds itself in the crosshairs, grappling with the added pressure amid an economic slowdown.
Since ascending to power a decade ago, Xi has waged an unyielding battle against deeply ingrained corruption, resulting in the punitive measures against at least 4.7 million officials, according to a 2022 report by the state-run Global Times.
The Hong Kong-based news outlet South China Morning Post reports a 40 percent increase in publicly disclosed investigations into senior-level officials last year compared to 2022.
Recently, Xi has declared his determination to extirpate corruption deeply embedded in the finance, banking, and state-owned sectors. This resolve comes amidst a backdrop of a property crisis, soaring local government debt, and persistently low consumption, all of which threaten economic vitality.
Alex Payette, CEO of Cercius Group, a consultancy specializing in Chinese domestic politics, notes that Xi prioritizes ideological fidelity over economic stability. According to Payette, Xi aims to fortify critical industries to withstand foreign sanctions and consolidate the economy fully under party control.
Xi attributes degenerative corruption to market mechanisms and foreign ideologies, viewing them as divergences from the correct ideological foundation of the party. Despite the potential for turbulence in key sectors, Xi sees no contradiction between shoring up the economy and demanding clean and efficient behavior from officials, even as he reduces their pay and benefits.
The recent surge in corruption crackdowns is not limited to elite bureaucrats. Xi’s campaign has shifted focus towards the second tier, capturing officials from state-owned banks, the banking regulator, and state-owned oil and tobacco firms. Some experts speculate that this shift indicates Xi’s concern about the increasing independence of these sectors, posing a potential threat to his authority.
China’s history of mass campaigns to achieve party goals is notable, but Xi’s prolonged and intense initiative distinguishes itself. Compared to Mao Zedong’s era, where campaigns lasted only a few months to a couple of years, Xi’s protracted effort reflects the greater scale, complexity, and segmentation of Chinese society and the economy.
Vivienne Shue, professor emeritus at Oxford University, suggests that the staged and targeted approach of Xi’s campaign unfolds in sequenced surges due to the multifaceted nature of contemporary Chinese society and economy.
As the crackdown persists, the public is treated to lurid cases, satisfying suspicions of widespread corruption. State media reveals extravagant details, such as former Everbright chairman Tang Shuangning’s penchant for expensive art and flaunting calligraphy. Public confessions, like former national football coach Li Tie’s admission to match-fixing and bribery, are aired on state broadcaster CCTV.
While the crackdown’s duration and intensity resemble the American war in Vietnam, with the body count rising but no clear end in sight, experts predict that Xi’s campaign is likely to persist throughout his rule, as he cannot afford to lose this unwavering battle against corruption.
