The Shanghai Municipal Commission for Discipline Inspection, a branch of the Central Commission for Discipline Inspection (CCDI), is intensifying its crackdown as it investigates yet another prominent business leader. Zhou Jun, the president of Shanghai Industrial Investment, is currently under investigation for suspected 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 high-profile business leader in China to be investigated by authorities.
The CCDI has also 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. 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, these investigations have created a tense atmosphere in the business world. Fred Hu, the chief of one of China’s leading investment firms, suggests that entrepreneurs are “lying low” or “lying flat” against the backdrop of these investigations. He emphasizes the need for China to reform its legal system to protect entrepreneurs from arbitrary political interference and even prosecution.