The Shanghai Municipal Commission for Discipline Inspection is intensifying its crackdown on corruption as it investigates the president of Shanghai Industrial Investment, Zhou Jun. This commission is a branch of the Central Commission for Discipline Inspection (CCDI) and Zhou is suspected of 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. Zhou is the latest prominent business leader in China to be investigated by authorities.
This year has seen over a dozen top executives from various sectors like technology, finance, and real estate either disappear or become subjects of corruption investigations. The CCDI has also been 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.
The rising risks to international consulting firms have heavily impacted the business community in China. Executives have been raided or detained by authorities leading to a negative impact on international businesses operating in China. Fred Hu, chief of one of China’s leading investment firms, suggested that entrepreneurs are “lying low” against the backdrop of these investigations. He emphasized the need for China to reform its legal system particularly for protecting entrepreneurs from arbitrary political interference and even prosecution.