In recent news, China’s anti-graft watchdog has intensified its crackdown on corruption as it investigates yet another business leader. The Shanghai Municipal Commission for Discipline Inspection is currently investigating Zhou Jun, the president of Shanghai Industrial Investment, for suspected serious violations of discipline and law, commonly referred to as corruption.
Zhou had previously held posts at several state-owned group’s Hong Kong listed subsidiaries before resigning citing personal matters. His company, Shanghai Industrial Investment, operates in infrastructure, property, and pharmaceuticals, making him the latest prominent business leader in China to be investigated by authorities.
The Central Commission for Discipline Inspection (CCDI) has been conducting disciplinary reviews and supervisory investigations into Zhou. This comes after a number of top executives from various sectors like technology, finance, and real estate have either disappeared, been detained or become subjects of corruption investigations this year. The CCDI is also currently 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. With rising risks to international consulting firms such as raid or detention of executives reported by CNN, entrepreneurs are “lying low” or “lying flat” against the backdrop of these investigations. Fred Hu, chief of one of China’s leading investment firms emphasized the need for China to reform its legal system particularly for protecting entrepreneurs from arbitrary political interference even prosecution.