The Shanghai Municipal Commission for Discipline Inspection has intensified its crackdown on corruption by investigating yet another business leader. This time, the president of Shanghai Industrial Investment, Zhou Jun, is under investigation for suspected serious violations of discipline and law. According to CNN, 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.
The Central Commission for Discipline Inspection (CCDI) has been conducting disciplinary review and supervisory investigation into Zhou’s case. Over a dozen top executives from various sectors like technology, finance, and real estate have either disappeared, been detained or become subjects of corruption investigations this year. In addition to Zhang Hongli and Chen Shaojie, the CCDI has also been investigating other high-profile executives like Xin Jianzhang, the founder of China Southern Airlines.
These developments have heavily impacted the business community in China overall. The rising risks to international consulting firms have led to reports of raid or detention of executives by Chinese authorities. Fred Hu, chief of one of China’s leading investment firms, suggested that entrepreneurs are “lying low or lying flat” against the backdrop of these investigations. He emphasized the need for China to reform its legal system to protect entrepreneurs from arbitrary political interference and even prosecution.