BEIJING – Chinese President Xi Jinping has targeted former and sedentary executives in the country’s military-industrial complex, including those involved in the country’s nuclear program and aircraft carrier development, as part of his anti-corruption campaign.
Last month, senior anti-transplant bodies for both the party and the state announced an investigation into Yin Jiaxu, former chairman of China North Industries Group, and Liu Houcheng, an executive with China National Nuclear Corp. serious disciplinary and legal violations “, the terminology frequently used for corruption.
The raids are seen as part of Xi’s attempt to consolidate his hold in the military ahead of the Communist Party Congress, scheduled for autumn next year.
Since Xi took over the helm in 2012, he has vowed to take action against both “tigers” and “flies”. This refers to high and low level officials dealing with corruption. The campaign reached a crescendo in the run-up to the twice-decade-long Communist Party conference in autumn 2017 and ended in recent years. The same cycle is expected to start again this year.
The anti-transplant authorities have not disclosed in detail the reason for the investigation into Yin and Liu.
Yin was chairman of China North Industries, the military company known as Norinco, from 2013 to 2018. Previously, from 2002 to 2010, he was Deputy General Manager of China South Industries Group, a manufacturer of military equipment. There he was also head of the group company Changan Automobile Group, which had joint ventures with Ford Motor and Mazda Motor.
Yin Jiaxu, former chairman of the defense firm China North Industries Group, is under investigation for alleged “serious disciplinary and legal violations.”
That investigators were investigating a person who served as the executive branch of two leading military contractors came as a shock to the defense industry.
Some Chinese media have speculated that Yin was implicated in wrongdoing during his tenure as Changan’s CEO. Former China South Industries Group executives have reportedly also used their powers to benefit family members.
Previously, Liu was an executive at an asset management company at China Nuclear Engineering & Construction Corp., which in 2018 collaborated with the nuclear weapons developer China National Nuclear Corp. merged, which is widely regarded as a critical part of the military-industrial complex. Following the merger, Liu was promoted to deputy chief economist at CNNC, where he managed costs.
In January, the authorities arrested Hu Wenming, former chairman of China Shipbuilding Industry Corp., on suspicion of taking bribes and abusing power. Hu oversaw the construction of China’s first self-developed Shandong aircraft carrier.
The impact of the anti-transplant probes has reached the People’s Liberation Army itself, the buyer of the weapons. The National People’s Congress Standing Committee announced last month that Song Xue, former Navy’s deputy chief of staff, would lose his status as an NPC representative on allegations of serious disciplinary and legal violations.
Since Song was involved in the development of aircraft carriers, his relationships with military contractors have been the subject of speculation.
The renewed procedure takes place against the background of the power struggle currently in play. At the Central Military Commission, headed by Xi, a senior officer from the Weapons Development Department was investigated for alleged violations of disciplinary procedures. Many of those in the same department are believed to be close to former President Jiang Zemin.
Jiang resigned as general secretary of the party in 2002, but remained head of the Central Military Commission for two years to demonstrate his strong influence over the armed forces.
It is believed that the goals of recent investigations such as Yin and Hu are closely related to Jiang and his inner circle. Xi’s leadership may move to purify the Jiang faction.
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