China Pledges to Intensify Anti-Corruption Efforts in Finance Amid National Security Concerns
Beijing Vows to Step Up Anti-Corruption Drive in Financial Sector
China’s top decision-making body has vowed to strengthen its anti-corruption efforts in the financial sector and public firms, as part of President Xi Jinping’s drive to tackle national security risks within the party, government, and large industries. The pledge comes amidst a broader crackdown on corruption and a push to promote “common prosperity” and improve wealth distribution.
Key Takeaways
- China’s anti-corruption efforts will focus on promoting those who do not engage in corrupt activities
- The financial sector is already under scrutiny, with top officials being taken away for investigation and employees instructed to scale back their luxurious lifestyles
- The Communist Party aims to ensure that businesses serve the real economy and national strategy
- State-owned enterprises must enhance their core competitiveness, while financial institutions must increase efforts to serve the real economy and national strategy
Crackdown on Corruption Continues
The anti-corruption drive has not spared top officials, with former foreign minister Qin Gang and defense minister Li Shangfu reportedly “disappearing” over the past few months. The vanishing of officials in China is often followed by the announcement of investigations into suspected disciplinary infractions, but Beijing has yet to explain why Qin and Li remain out of public sight.
National Security Concerns
The focus on national security risks within the party, government, and large industries comes as tensions escalate over Taiwan, the South China Sea, and US export controls targeting the Chinese military and advanced tech sector. President Xi Jinping’s drive to tackle these risks is part of his broader effort to strengthen China’s position in the world.
Background
Last year, Xi vowed that China will steadfastly promote common prosperity and improve wealth distribution. The “common prosperity” agenda aims to ensure that businesses serve the real economy and national strategy. In addition to anti-corruption efforts, Beijing has also been cracking down on its $57 trillion financial sector, with developments such as top tech dealmaker Bao Fan being taken away by authorities for a corruption investigation.
Implications
The intensification of anti-corruption efforts in China’s financial sector is likely to have far-reaching implications for the country’s economy and international relations. As tensions continue to escalate over national security concerns, Beijing’s drive to promote common prosperity and improve wealth distribution will be closely watched by the global community.