The Chinese Military Industrial Complex Corruption Cases Continue to Emerge.
Today, on February 12th, another senior official of a military industrial complex has been taken down, as Liu Weidong, the Vice General Manager of China Ordnance Equipment Group, was placed under investigation. Liu Weidong had worked for a long time in the Dongfeng Group before serving as an executive at the Ordnance Equipment Group for 7 years. Recently, there were reports of Dongfeng Motors and Chang’an Motors, subsidiaries of Ordnance Equipment Group, undergoing a merger and restructuring. As a key figure in these two companies, Liu Weidong’s sudden downfall has drawn attention.
According to the official website of the Central Commission for Discipline Inspection of the Chinese Communist Party, Liu Weidong, a member of the Party committee and the Vice General Manager of China Ordnance Equipment Group, is suspected of “serious violations of discipline and law” and is currently under investigation.
Public records show that Liu Weidong was born in 1966, making him 59 years old this year, with only one more year until retirement. He currently ranks fourth in the management hierarchy of China Ordnance Equipment Group, following the Chairman, General Manager, and Deputy Secretary of the Party committee.
In his early years, Liu Weidong did not work at China Ordnance Equipment Group, but rather in the Dongfeng Group, where he held positions such as Vice Factory Director of Dongfeng Automotive’s Steel Plate Spring Factory, Deputy General Manager of Suspension Spring Company, Department Head of Coordinated Support at the Load Truck Company, General Manager of Shenlong Automotive Company, and Vice General Manager of Dongfeng Automotive Company. In 2018, 52-year-old Liu Weidong was promoted to Vice General Manager of China Ordnance Equipment Group after a tenure of 7 years, only to be investigated as retirement approached.
Reports from mainland China Finance and Economics raised uncertainty about whether Liu Weidong’s issue occurred during his tenure at Dongfeng Group or China Ordnance Equipment Group. However, several executives of Dongfeng Motors have been investigated, raising questions about Liu Weidong’s potential involvement.
It is worth noting that Changan Motors, a subsidiary of China Ordnance Equipment Group, recently announced plans for restructuring following a notice from the Group’s indirect controlling shareholder. Dongfeng Motors also mentioned ongoing plans for restructuring with other state-owned enterprises. Speculation has been rife about the possible merger of these two companies, while Liu Weidong, a key figure in both automotive enterprises, unexpectedly encountered trouble.
China Ordnance Equipment Group mainly engages in research, design, and manufacturing of military equipment. Established on July 1, 1999, the group is one of the top ten military industrial enterprises of the Chinese Communist Party and is a super-large centrally-managed state-owned enterprise.
Over the past two years, senior officials of Chinese Communist Party military industrial enterprises have faced frequent issues. Liu Weidong’s superior, the Chairman of China Ordnance Equipment Group, Xu Xianping, has recently mysteriously disappeared, sparking speculation of his involvement in some trouble.
Furthermore, during the New Year period, several military industrial giants, including Yu Jianfeng, Chairman of China National Nuclear Corporation; Zhou Xinmin, Chairman of China Aerospace Science and Technology Corporation; and Liu Dashan, General Manager of China National Nuclear Corporation, did not make appearances during “condolence” activities.
The Chinese Communist Party has at least 12 military industrial state-owned enterprises, including China National Nuclear Corporation; China Aerospace Science and Technology Corporation; China Aerospace Science and Industry Corporation; China Aviation Industry Corporation; China Shipbuilding Corporation; China Shipbuilding Heavy Industry Corporation; China Ordnance Industry Group; China Ordnance Equipment Group; China Electronics Technology Group; China Aviation Engine Group; China Electronics Information Industry Group; and China Academy of Engineering Physics. From public information, it appears that almost none of these military industrial state-owned enterprises have escaped unscathed in this round of anti-corruption efforts.