The Chinese Communist Party has initiated a new round of inspections targeting state ministries and financial institutions, intending to tackle corruption and shift public discontent onto corrupt officials. This move is seen as a way to potentially prepare for the upcoming Third Plenary Session of the Sixth Central Committee in June.
According to reports from official Chinese media, the third round of 15 central inspection teams has begun entering the units to be inspected, focusing on violations of political, organizational, integrity, and production disciplines.
The list of institutions to be inspected includes state ministries like the National Development and Reform Commission, the Ministry of Finance, the Ministry of Natural Resources, the Ministry of Housing and Urban-Rural Development, as well as various financial regulatory bodies and major state-owned banks and insurance companies.
This inspection is following a previous round in 2021 that targeted 25 financial institutions. Notably, several high-ranking officials, including “financial big tigers” Lai Xiaomin, Hu Huaibang, Cai Esheng, Yang Jiacai, and Wang Bin, were named and later investigated.
Observers suggest that Chinese leader Xi Jinping’s move to inspect these institutions serves a dual purpose. First, it aims to shift the blame for China’s economic troubles onto the State Council, by highlighting the alleged responsibilities and failures within economic and financial sectors. Secondly, the crackdown on corrupt officials is seen as a way to extract resources while diverting public frustration away from the government.
The Chinese financial industry has long been monopolized by red aristocratic families such as the Jiang and Zeng families, making it a prominent area for corruption scandals.
In recent years, a significant number of financial officials have been investigated and removed from their positions. The latest round of inspections has led to a series of officials from various financial institutions being probed and disciplined, signaling a wider crackdown on corruption within the financial sector.
Additionally, there have been at least 11 tax officials investigated, including senior figures from local tax bureaus and the national tax authority, adding to the growing list of officials falling from grace.
Amid internal power struggles and economic challenges, the delayed Third Plenary Session of the Sixth Central Committee, initially scheduled for the previous year, has yet to be convened. Speculations suggest that the delay could be attributed to complex political or economic issues facing the Chinese regime.
Analysts anticipate that the upcoming Third Plenary Session may address key economic policies and possibly involve the public handling of former Ministry of National Defense Minister Li Shangfu and former Ministry of Foreign Affairs Minister Qin Gang. With the intensifying economic crisis and military purges, internal conflicts within the Chinese Communist Party leading up to the session are expected to escalate.
Observers believe that the ongoing inspections of state ministries and financial institutions, lasting for up to three months and potentially overlapping with the Third Plenary Session, hint at political maneuvering and power consolidation efforts ahead of the critical meeting. It is anticipated that more high-ranking officials, especially within the financial sector, could face scrutiny and removal before and after the session.