Zeng Qinghong’s Oil Gang: Two Senior Executives Arrested, Hainan Officials’ Turmoil Continues

During the sensitive period of the Third Plenary Session of the Chinese Communist Party (CCP) and the Beidaihe Conference, executives of China National Petroleum Corporation (CNPC) and Sinopec’s Hainan Branch are being investigated, causing continuous turbulence in the political landscape of Hainan. The China National Petroleum Corporation had previously been under the control of the “oil gang” leader, Zeng Qinghong. Analysts believe that the recent series of officials in Hainan being investigated, especially the two executives from the oil system, indicates an escalation of power struggles within the CCP leadership, with Xi Jinping’s faction advancing the cleansing operation to encroach on Zeng Qinghong’s core interests.

In August, two high-ranking executives from the CNPC system’s Hainan branch are under investigation. The CCP Central Commission for Discipline Inspection and the National Supervisory Commission of China released news on August 1st and August 20th. One announcement stated that Zhao Erquan, former Party Secretary, Chairman, and General Manager of China National Petroleum Hainan Sales Co., Ltd., is being investigated; the other announcement indicated that Huang He, General Manager of Sinopec Sales Co., Ltd. Hainan Petroleum Branch, is also under investigation.

Zhao Erquan had previously served as the legal representative of companies such as China National Petroleum Hainan Sales Branch and China National Petroleum Jilin Sales Branch’s Laosiping Gas Station, holding executive positions in these companies.

Established in 2015, China National Petroleum Hainan Sales Co., Ltd. is currently controlled by China National Petroleum, holding a 51% stake. Additionally, China Marine Petroleum Refinery Co., Ltd. and Hainan Development Holdings Co., Ltd. hold 39% and 10% shares, respectively.

As the oil and petrochemical system shakes, numerous officials in Hainan have been falling under investigation recently.

On August 20th, Ju Lei, former member of the Hainan Provincial Party Committee in Haikou City and former Deputy Mayor of the Municipal Government, was investigated.

On August 12th, the Hainan Provincial Discipline Inspection Commission announced the investigations of 10 officials, including Wang Dehai, former Director of the Personnel Department of the Natural Resources and Planning Department of Hainan Province; Li Jingquan, former Dean of the First Affiliated Hospital of Hainan Medical College; Xing Zengyao, former Deputy Secretary of the Party Committee and Director of the Water Affairs Bureau of Qiongshan District, Haikou City; Wang Bin, former Party Secretary and Director of the Water Affairs Bureau of Dongfang City; Chen Wurong, former Party Secretary of Wanning People’s Hospital; Chen Xiaohai, former Director of the Wengtian Police Station of the Wenchang Public Security Bureau; Chen Yongbao, former Principal of Dongfang Middle School in Dongfang City; Fu Yemin, former Party Secretary of Yuxiong Village, Sanjia Town, Dongf…