On Friday, the Chinese government expelled nine high-ranking generals from its military. According to a report in the BBC, the highest-ranking general that was sacked was He Weidong, who was the vice chair of the Central Military Commission (CMC); however, the political commissars of both the army and navy were also sacked. All of these men are alleged to have misappropriated large sums of money from the military for their own personal use. According to a reportin CNN, He was also a member of the Politburo, thus he would have very close ties to Xi. It is unclear what will happen to their generals, but it wouldn’t surprise me if one of these generals had a “heart attack in a swimming pool” (a Chinese saying referring to when there is a death under mysterious circumstances).
Tag: China
New York Mayor Adams Indicted on Corruption Charges.
Yesterday, the mayor of New York, Eric Adams, was indicted for corruption allegations. According to a report in the New York Times, Adams faces federal bribery charges, fraud, and soliciting illegal campaign funds from foreign countries. The central allegation facing Adams is that he conspired with the Turkish government to obtain funds for his re-election campaign. The federal indictment against Adams states that in return for the illegal funds, he pressured the New York Fire Department to approve the building of a new Turkish consulate despite serious concerns about its safety. According to another New York Times report, Adams reportedly solicited funds from Qatar, South Korea, Uzbekistan, Israel, and China. However, it is not just Adams facing criminal charges against him. According to the Times, the former and interim police commissioner, a former building commissioner, the deputy mayor, and a phalanx of aides are facing similar charges or, at the very least, have had to meet with federal investigators over possible corruption charges. Adams hasn’t resigned yet as of writing, but it seems like it’s only a matter of time until he does.
Hochul Involved in Chinese Spying Scandal.
Last Week, an aide to New York State Governor Kathy Hochul was charged with spying for China. According to a report in The Guardian, Linda Sun, Hochul’s chief of staff, on direction from the Chinese government prevented Hochul from meeting Taiwanese officials. Sun also allegedly shaped policy in a way that was favorable to Chinese government interests. In return for her efforts, Sun and her husband received tickets to a Chinese orchestra and lavish meals, including Nanjing-style salted duck, as well as Sun and her husband purchased property and expensive cars. It is unclear what will happen next, but if found guilty, Sun will likely face prison.
Adidas Embroiled in Chinese Corruption Allegations.
Today, Adidas is embroiled in a bribery scandal in China. According to a report in Aljazeera, a whistleblower claims senior staff received millions of Euros in kickbacks from outside suppliers. According to an anonymous report in Reuters, these senior staff members also received non-financial perks like real estate. There are also reports that a senior staffer with access to the marketing budget may have used those funds for personal use. Executives at Adidas will be worried by the 4% drop in its share price when the stock market opens this morning.
China’s Ongoing Battle Against Corruption.
China and, more importantly, President Xi Jinping’s battle against entrenched corruption is continuing to make headline news. According to a report in Bloomberg, Xi’s most recent comments will put large swathes of the Chinese economy on edge, and that could continue to fuel uncertainty both domestically and abroad if one of the world’s biggest economies is in a state of constant turmoil. According to a report by CNN, Xi is primarily focused on misconduct in the healthcare, financial, and infrastructure sectors. These actions raise an interesting question: can corruption ever be truly stopped? While there have been some examples, such as Ukraine, where Zelenskyy has made some impressive strides in the last year, by and large, corruption and greed will always occur. If a country with China’s resources can’t fully root out corruption, then no one can. Catching a few big fish will always look good, but there will always be small fish in a pond that will induce greased palms and the benefits those bring.
Chinese Government is in the Middle of a Major Military Shake-Up.
Xi Jinping and his government have recently conducted a massive anti-corruption purge of the country’s military. According to an article in Axios, Nine generals and three officials who were connected to China’s development of military technology were fired from a Chinese Communist Party working group called Rocket Force, which focuses on China’s missile program. On top of that, The Washington Post reports that Xi appointed a new defense minister, Dong Jun, the former head of the Chinese Navy. The previous defense minister, Li Shangfu, has not been seen in public for two months, and questions are mounting as to his whereabouts. Many experts on China-related policy believe Xi faces an impossible task in rooting out endemic corruption as there is a chronic lack of transparency and accountability within the Chinese military.
Major Match Fixing Scandal Plagues Snooker.
Match-fixing scandals are not a new occurrence in sports; football, Tennis, and many other sports have had to deal with match-fixing scandals in recent years. Even snooker, a sport much like Billiards popular in the UK and China, has fallen victim to corruption. According to an article on the BBC, ten Chinese players based in Sheffield, England, the city hosting the Snooker World Championships, were in financial difficulties last year. As a result, they resorted to manipulating the outcome of matches they played in return for money. The scandal was blown wide open by snooker’s governing body, the World Professional Billiards and Snooker Association (WPBSA), being alerted to suspicious betting patterns and whistleblowers from inside the game. This incident shows that no matter how big or small the sport is, match-fixing is always a threat to the integrity of the game.
Former Head of China Bank Arrested on Corruption Charges.
Today, China arrested the former head of one of its largest commercial banks, Liu Liange. According to the BBC, Liu is accused of illegally granting loans, bringing banned publications into China, and accepting bribes. Liu was expelled from the communist party after this accusation came to light. According to Barrons, President Xi has been embarking on a wide-sweeping campaign to eradicate corruption from the Communist Party. One must assume that Liu probably won’t see the light of day soon.
Head of China Life Insurance Sentenced to Death on Corruption Charges.
The former Chairman of China’s most prominent life insurance firm Wang Bin today was sentenced to death with a two year reprieve after being found guilty on corruption charges. This is the latest conviction of a well-known figure in China’s financial services industry, as President Xi clamps down on corruption. According to a report from CNN, Mr. Wang had taken $44 million in bribes and had stashed $7 million away in a bank account in Hong Kong. It is unclear who could have bribed Mr. Wang; it could be anyone within the Chinese business community or someone from abroad. According to a report in the Independent, when Wang was arrested in 2022, China’s anti-corruption body stated he failed to institute policies within his company that would mitigate financial risks. Likely, this will not be the last time a prominent figure in the Chinese financial industry will be charged with corruption.
Is Thames Water Going Down the Drain?
This week in the UK, Thames Water, the company that supplies water to London and the South of England, faces an uncertain future. It has racked up debts of nearly £15 billion, and the UK government will likely have to bail the company out. Thames was privatized during Margaret Thatcher’s premiership in the 1980s, and since then, different entities have bought portions of the company. According to an article in The Independent, the single largest shareholder is a Canadian pension fund called the Ontario Municipal Employees Retirement System, which holds around 32 percent of the company. On top of that, the sovereign wealth funds of both Abu Dhabi and China. While there may not be any outright corruption, there is a valid question: why would a bunch of pension funds and sovereign wealth funds want a piece of a British water company? Besides making money, the whole situation seems murkier than the Thames. The future of Thames Water is uncertain; however, this proves that the Renationalization of crucial industries in the UK should be considered.
Crispin Corruption Report 