The Chinese Communist Party (CCP) has recently revised the so-called “integrity” regulations for leaders of state-owned enterprises. Compared to the old version 17 years ago, the newly added prohibited behaviors have significantly increased, including anonymous shareholding and profiting from insider information. Analysts believe that this document is like a veiled exposure of the shocking corruption within state-owned enterprises. As more officials are caught in the future, under the CCP’s authoritarian system, it is simply a matter of replacing one corrupt group with another.
According to Xinhua News Agency, the CCP Central Office and the State Council recently issued the “Regulations on the Integrity of Leaders of State-Owned Enterprises” consisting of five chapters and 38 articles.
In contrast to the old version released on July 1, 2009, the revised version released on February 28, 2026 expands the list of prohibited behaviors from about 39 to 58. The old version mainly focused on traditional corruption issues such as abuse of power, embezzlement, acceptance of gifts, and excessive consumption. The new version significantly increases regulations on new types of corruption, including hidden ownership of shares.
For instance, prohibitions about using authority or position for personal gain include accepting or soliciting “valuable securities, virtual currencies,” agreeing to receive assets upon leaving or retiring, entrusting others to invest in securities, futures, funds without actual investment, and profiting from insider trading through hidden shareholding or operating businesses through proxies.
Prohibitions against engaging in profitable activities in violation of regulations include investing in similar businesses related to the enterprise either directly or through proxies, anonymous investments, among others.
It also prohibits using authority or position to benefit relatives, spouses, children, and other specific individuals. The regulations strictly forbid favoritism, discrimination, and sudden promotions during corporate restructuring or when senior management members are nearing retirement age or departing.
Sun Guoxiang, a professor of International Affairs and Business at Nanhua University in Taiwan, stated that this document essentially exposes the severe and escalating corruption within state-owned enterprises. Compared to the 2009 version, it is evident that the CCP leadership believes the previous constraints were inadequate to address the new forms of corruption. While the CCP appears to tighten controls with seemingly stricter rules, the underlying issues persist.
In recent years, CCP state-owned enterprises have become hotbeds of corruption. For example, in the past three years, during the cleansing within the military industry sector, ten core military-industrial enterprises (also central enterprises) have faced corruption scrutiny, including high-ranking officials from China National Nuclear Corporation, China Aerospace Science and Technology Corporation, China Aerospace Science and Industry Corporation, China Aviation Industry Corporation, China Aviation Engine Group, China Shipbuilding Group, China Ordnance Industry Group, China Ordnance Equipment Group, China Electronics Technology Group, and China Electronics Information Industry Group.
Commentator Li Linyi mentioned that the newly released so-called regulations on integrity unequivocally highlight the alarming level of corruption within CCP state-owned enterprises. He believes that the issuance of these prohibitions may result in more arrests of officials in state-owned enterprises. However, within the corrupt CCP system, no amount of regulations can effectively curb corruption. Arresting one group of corrupt officials simply paves the way for another to carry on the corruption.
Recent reports from insiders within the system revealed that the number of officials detained in prisons and detention centers has notably increased in various regions, particularly those involved in bribery and corruption. Since January of this year, prisons and detention centers in Shandong, Henan, and other regions have received a wave of corrupt individuals, including retired officials and high-ranking executives from state-owned enterprises.