The Shanghai Municipal Commission for Discipline Inspection has intensified its crackdown as it investigates yet another business leader, Zhou Jun, the president of Shanghai Industrial Investment. 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 held posts at several state-owned group’s Hong Kong listed subsidiaries before resigning recently, 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 been investigating other top executives from various sectors like technology, finance, and real estate this year. Over a dozen executives have either disappeared, been detained 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.
These developments have heavily impacted the business community in China overall. With the rising risks to international consulting firms such as raid or detention of executives reported by CNN, entrepreneurs are “lying low” or “lying flat” against the backdrop of these investigations. Fred Hu, chief of one of China’s leading investment firms emphasized the need for China to reform its legal system particularly for protecting entrepreneurs from arbitrary political interference and even prosecution.