In recent years, China’s anti-graft watchdog has intensified its crackdown on business leaders suspected of corruption. The latest target is Zhou Jun, the president of Shanghai Industrial Investment. The Shanghai Municipal Commission for Discipline Inspection is investigating him for serious violations of discipline and law, according to CNN.
Zhou had previously held posts at several state-owned group’s Hong Kong listed subsidiaries before resigning citing personal matters. His company operates in infrastructure, property, and pharmaceuticals, making him one of the latest prominent business leaders to be investigated by authorities in China.
The CCDI has also been investigating other top executives from various sectors like technology, finance, and real estate this year. Among them are 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. Over a dozen executives have either disappeared or become subjects of corruption investigations this year.
These developments have heavily impacted the business community in China overall as international consulting firms face rising risks such as raids or detention of executives reported by CNN. Fred Hu, chief of one of China’s leading investment firms, advised entrepreneurs to “lie low” or “lie flat” against the backdrop of these investigations. He emphasized the need for China to reform its legal system for protection of entrepreneurs from arbitrary political interference and prosecution.