The Shanghai Municipal Commission for Discipline Inspection, a branch of China’s Central Commission for Discipline Inspection (CCDI), is intensifying its crackdown on corruption by investigating yet another business leader. The president of Shanghai Industrial Investment, Zhou Jun, is currently under investigation for 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,” according to CNN. His company operates in infrastructure, property, and pharmaceuticals, making him the latest prominent business leader in China to be investigated by authorities.
The CCDI has also been investigating other top executives from various sectors such as technology, finance, and real estate this year. Over a dozen executives have either disappeared, been detained or become subjects of corruption investigations. These developments have heavily impacted the business community in China overall.
The rising risks to international consulting firms, including raid or detention of executives, reported by CNN have further intensified the pressure on entrepreneurs in China. Fred Hu, the 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, particularly for protecting entrepreneurs from arbitrary political interference and even prosecution.