Corruption Drive Picks Up Shanghai Party Boss

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The current anti-corruption drive, which has already taken some surprisingly powerful heads, has taken another high-profile victim in the form of Shanghai Party Secretary, Chen Liangyu. According to the International Herald Tribune, he was “detained” on Sunday:

    “It is exceedingly rare in China for members of the ruling Politburo to face legal trouble, even when the authorities have evidence of corrupt activities by them or people close to them. [President] Hu almost certainly would not have approved of the action unless he considered Chen an obstacle to his political control or his policy agenda.”

Forbes adds, that the business impact has been swift, and that:

    “Several Shanghai-based stocks were hit after the news that China’s central government has sacked Shanghai’s communist party secretary Chen Liangyu over a widening pension fund scandal.”

While there are, as always, political undercurrents to the move, it is a clear indication that the anti-corruption drive still has fuel in the tank – and strong support from the centre. It is also clear that people in high places have a long way to fall, and that they can carry plenty of hangers-on with them on their descent (i.e. “guanxi” and “opportunism” need to be carefully managed…to say the least).

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3 Responses to “Corruption Drive Picks Up Shanghai Party Boss”

  1. andrew Says:

    It seems to be a positive development, but the IHT was hazy about what his actual crime was or which scandal resulted in the arrest. Looks a bit political to me. Is the general feeling that it will put a lid on lower-level corruption or will petty bureaucrats breathe a sigh of relief that the sacrifice has been made and soon they can get back to business as usual?

  2. Jeremy Gordon Says:

    I agree the motivation for this is political, but it seems to have been promted by the pension fund scandal. We can expect more political moves in the coming months as people are positioned for the party congress next year. In relation to low-level corruption, I suspect the message will be seen as a political one that might make one camp more nervous than the other. Nevertheless, the positive anti-graft message will still be there for all to see.

  3. Archive » Don’t Quote Me (on Corruption)| China Business Blog Says:

    […] There has been a lot written about corruption in China over the past week, following the detention of Shanghai Party boss Chen Liangyu – and it is a subject very worthy of inclusion […]

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